HomeMy WebLinkAboutOrdinance - 23-2018 - Amending City Code Section 5.71, Related to Pawnshops and Precious Metal Dealers - 12/13/2018 CITY OF EDEN PRAIRIE
HENNEPIN COUNTY, MINNESOTA
ORDINANCE NO. 23-2018
AN ORDINANCE OF THE CITY OF EDEN PRAIRIE,MINNESOTA AMENDING CITY
CODE CHAPTER 5, SECTION 5.71 RELATING TO PAWNBROKERS AND PRECIOUS
METAL DEALERS; AND ADOPTING BY REFERENCE CITY CODE CHAPTER 1 AND
SECTION 5.99 WHICH AMONG OTHER THINGS CONTAIN PENALTY PROVISIONS.
THE CITY COUNCIL OF THE CITY OF EDEN PRAIRIE, MINNESOTA ORDAINS:
Section 1. That City Code Chapter 5, Section 5.71, is hereby deleted in its entirety and replaced
with the following:
SECTION 5.71. PAWNBROKERS AND PRECIOUS METAL DEALERS
Subd. 1. Purpose. The Council finds that pawnbrokers and precious metal dealers potentially
provide an opportunity for the commission and concealment of crimes. Such businesses have the
ability to receive and transfer stolen property easily and quickly. The Council also finds that
consumer protection regulation is warranted in transactions involving pawnbrokers and precious
metal dealers. The purpose of this section is to prevent pawnbroking and precious metal businesses
from being used as facilities for commission of crimes and to ensure that such businesses comply
with basic consumer protection standards, thereby protecting the public health, safety and general
welfare of the citizens of the City.
Subd. 2. Definitions. When used in this Section, the following terms have the following
meanings:
A. "Goods"means goods as defined in Minnesota Statutes Section 336.9-102(a)(44).
B. "Item containing precious metal" means an item made in whole or in part of metal and
containing more than one percent by weight of silver, gold, or platinum.
C. "Minor"means any natural person under the age of 18 years.
D. "Oversized items"means large items such as cars, boats, and other motorized vehicles and
motorized equipment.
E. "Pawnbroker"
1. "Pawnbroker"means a person engaged in whole or in part in the business of lending
money on the security of pledged goods left in pawn, or in the business of
purchasing tangible personal property to be left in pawn on the condition that it may
be redeemed or repurchased by the seller for a fixed price within a fixed period of
time.
2. The following are exempt from the definition of"pawnbroker": any bank regulated
by the State of Minnesota, the comptroller of the currency of the United States, the
Federal Deposit Insurance Corporation, the board of governors of the Federal
Reserve System or any other federal or state authority and their affiliates; any bank
or savings association whose deposits or accounts are eligible for insurance by the
Federal Deposit Insurance Corporation or any successor to it and all affiliates of
those banks and savings associations; any state or federally chartered credit union;
and any industrial loan and thrift company or regulated lender subject to licensing
and regulation by the Department of Commerce of the State of Minnesota.
F. "Pawnshop" means the location at which or premises in which a pawnbroker regularly
conducts business.
G. "Pawn transaction" means any loan on the security of pledged goods or any purchase of
pledged goods on the condition that the pledged goods are left with the pawnbroker and
may be redeemed or repurchased by the seller for a fixed price within a fixed period of
time.
H. "Pledged Goods" means tangible personal property other than choses in action, securities,
bank drafts, or printed evidence of indebtedness, that are purchased by, deposited with, or
otherwise actually delivered into the possession of a pawnbroker in connection with a pawn
transaction.
1. "Precious metal dealer" means any person engaging in the business of buying secondhand
items containing precious metal, including, but not limited to, jewelry, watches, eating
utensils, candlesticks, and religious and decorative objects.
J. "Precious metals" means silver, gold, or platinum.
K. "Secondhand item"means tangible personal property,excluding motor vehicles,which has
been previously used, rented, owned, or leased.
Subd. 3. License Required. No person shall engage in the trade or business of pawnbroker or
precious metal dealer within the City unless such person is licensed under this Section. Any pawn
transaction made without benefit of a license is void. A separate license is required for each place
of business. More than one license may be issued to a person upon compliance with this Section
for each license.
Subd. 4. Exceptions for Precious Metal Dealers. Precious metal dealers, that are not also
pawnbrokers, conducting the following transactions are not required to obtain a license under this
Section.
A. Transactions at occasional "garage" or "yard" sales, or estate sales or farm auctions held
at the decedent's residence, except that precious metal dealers must comply with the
requirements of Minnesota Statutes Sections 325F.734 to 325F.742 for these transactions.
B. Transactions regulated by Minnesota Statutes Chapter 80A.
C. Transactions regulated by the Federal Commodity Futures Commission Act.
D. Transactions involving the purchase of precious metal grindings, filings, slag, sweeps,
scraps, or dust from an industrial manufacturer, dental lab, dentist, or agent thereof.
E. Transactions involving the purchase of photographic film, such a lithographic and x-ray
film or silver residue or flake recovered in lithographic and x-ray film processing.
F. Transactions involving coins, bullion, or ingots.
G. Transactions in which the secondhand item containing precious metal is exchanged for a
new item containing precious metal and the value of the new item exceeds the value of the
secondhand item, except that a person who is a precious metal dealer by engaging in a
transaction which is not exempted by this Section must comply with the requirements of
Minnesota Statutes Sections 325F.734 to 325F.742.
H. Transactions between precious metal dealers if both dealers are licensed under Minnesota
Statutes Section 325F.733, or if the seller's business is located outside of the state and the
item is shipped from outside the state to a dealer licensed under Minnesota Statutes Section
325F.733.
I. Transactions in which the buyer of the secondhand item containing precious metal is
engaged primarily in the business of buying and selling antiques, and the items are resold
in an unaltered condition, except for repair, and the items are resold at retail, and the buyer
paid less than $2,500 for secondhand items containing precious metals purchased within
any period of twelve (12) consecutive months.
Subd. 5. Ineligibility.
A. Persons Ineligible. No license may be issued to or held by any person who:
1. Is not a citizen of the United States or a resident alien, or is legally prohibited from
working in the United States;
2. Is a under the age of eighteen(18) at the time the application is filed.
3. Has pending a criminal charge, citation, or complaint for any violation of federal
or state statute or regulation, or of any local ordinance, which adversely reflects
upon the person's ability to conduct the licensed occupation in a legal manner,
which violations shall include, but are not limited to, theft, receiving stolen
property, and fraudulent business practices.
4. Has been convicted of any crime directly related to the licensed occupation and has
not shown competent evidence of sufficient rehabilitation and present fitness to
perform the duties of pawnbroker or precious metal dealer as prescribed by
Minnesota Statutes Section 364.03, Subdivision 3.
5. Holds a liquor license issued under City Code or State law.
6. Is not the real party in interest or beneficial owner of the business operated under
the license, or
7. Has had a pawnbroker or precious metal dealer's license revoked in any jurisdiction
within five (5) years of the license application, or
8. Is a corporation, partnership or other organization which has a parent who is or
meets a condition set forth in subparagraphs 1 through 7 of this Subdivision S.A.
B. Places Ineligible. No license may be issued for:
1. Any place or any business ineligible for a license under City or County ordinance
or State law.
2. Operation in any location not permitted by City Code Chapter 11.
3. A place or business which holds a liquor license issued under City Code or State
law.
4. Operation on any premises on which taxes, assessments or other financial claims of
the City or other government agency are delinquent and unpaid, except if an action
has been commenced pursuant to the provisions of Minnesota Statutes Chapter 278,
questioning the amount or validity of taxes, the Council may on application by the
licensee waive strict compliance with this provision; no waiver may be granted,
however,for taxes,or any portion thereof,which remain unpaid for a period exceeding
one (1) year after becoming due unless such one (1) year period is extended through
no fault of the licensee.
5. Any business if the property on which the business is or is to be conducted is owned
by, operated by, controlled by, or leased to a person who is ineligible for a license,
except that a property owner who is a minor shall not make the premises ineligible
under this subparagraph.
Subd. 6. License Applications.
A. Application. All applications for licenses issued under this Section shall be made on forms
supplied by the City. All questions asked or information required by the application forms
shall be answered fully and completely by the applicant.
B. Insurance.
1. Each applicant for a license shall file with the City a public liability insurance
policy or certificate of insurance from a company authorized to do business in the
State of Minnesota, insuring the applicant against any and all loss arising out of the
use, operation, or maintenance of the licensed business. The policy of insurance
shall be in limits of not less than $1,000,000.00.
2. Failure to keep in full force and effect the insurance required by this Section is
grounds for revocation of the license.
C. Property Ownership and Leases. Each applicant for a license shall provide,for the property
on which the licensed business will operate, (1) such information as is requested by the
City to establish the record owner of the property, and (2) copies of all leases currently in
effect.
D. False Statements. It is unlawful for any applicant to intentionally make a false statement or
omission upon any application. Any false statement in such application or any willful
omission to state any information called for on such application will, upon discovery of
such falsehood, be grounds for denial or, if already issued, for suspension or revocation of
the license.
E. License, Application, and Investigation Fees. Upon submission of the application,
applicants for a pawnshop or precious metal dealer license shall pay a fee to the City which
shall be considered an application and investigation fee, not refundable to applicant, to
cover the costs of the City in processing the application and the investigation thereof.Upon
approval of an application,whether initial or renewal,the license will not be effective until
the license fee is paid. All license, application, and investigation fees provided for in this
Section shall be fixed and determined by the Council. Such fees, may, from time to time,
be amended by the Council.
F. Manager or Agent. If the applicant is a firm, association, partnership, corporation, limited
liability company, or joint venture, the application shall include the name of the person
who will serve as the manager or agent of the licensed premises. Such manager or agent
shall, by the terms of his or her written consent, (1) take full responsibility for the conduct
of the licensed premises, and (2) serve as agent for service of notices and other process
relating to the license. Such manager or agent must be a person who, by reason of age,
character, reputation and other attributes would meet the standards established in
Subdivision 5.A of this Section. A licensee shall notify the City in writing within 15 days
of any change in such manager or agent indicating the name and address of the new
manager or agent and the effective date of such change.
G. Bond. At the time of filing an application for a license,the applicant shall file a bond in the
amount of$5,000 with the City Clerk. The bond, with a duly licensed surety company as
surety thereon, must be approved as to form by the City attorney. The bond must be
conditioned that the licensee shall observe the ordinances of the City, in relation to the
business of pawnbroker and precious metal dealer, and that the licensee will account for
and deliver to any person legally entitled thereto any property which may have come into
the possession of the licensee as pawnbroker or precious metal dealer or in lieu thereof
such licensee shall pay the person or persons the reasonable value thereof.
H. Investigation.tom. The City is empowered to conduct any and all investigations to verify the
information on applications and renewal applications submitted under this Section,
including but not limited to ordering a criminal history check pursuant to City Code Section
2.33 and conducting an inspection of any premises proposed to be licensed. Failure of an
applicant to allow an inspection is grounds for denial of the license.
I. Consideration and Issuance. After the information on the application has been verified as
correct by the City pursuant to subsection H above,an initial application for a license under
this Section shall be presented to the City Council for issuance or denial.
1. Issuance. Upon the City Council's approval of an application and the applicant's
payment of the license fee, the City shall issue and mail a license certificate to the
applicant at the address noted in the application.
2. Denial.The City Council may deny a license on the grounds set forth in Subdivision
5 of this Section and/or on the same grounds for which a license may be suspended
or revoked as set forth in Subdivision 8 of this Section. A denial of an application
shall be communicated to the applicant in writing, including findings and
conclusions supporting the decision. The notice of denial shall be mailed by regular
mail to the licensee at address listed on the application.
J. Term of License. Licenses issued under this Section will expire on December 31 of each
year.
K. Renewal of License. Applications for renewal of all licenses issued under this Section shall
be made at least sixty (60) days prior to the date of expiration of the license and shall
contain such information as is required by the City. After the information on the renewal
application has been verified as correct by the City pursuant to subsection H above, a
renewal application for a license under this Section will be presented to the Chief of Police
for issuance or denial.
1. Issuance. Upon approval of a renewal application and the applicant's payment of
the renewal fee,the City shall issue and deliver a license certificate to the applicant
at the address noted in the renewal application
2. Denial. The Chief of Police may deny renewal of a license on the grounds set forth
in Subdivision 5 of this Section and/or on the same grounds for which a license
may be suspended or revoked as set forth in Subdivision 8 of this Section. A denial
of a renewal application shall be communicated to the applicant in writing,
including findings and conclusions supporting the decision. The notice of denial
shall be mailed by regular mail to the licensee at address listed on the renewal
application. A licensee may appeal a non-renewal by submitting a hearing request
to the Chief of Police within ten (10) days of the date of the City's notice of non-
renewal. If a hearing request is not received by the City within ten (10) days of the
date contained in the notice, the licensee's right to a hearing shall be deemed
waived. If requested, the hearing shall be held in accordance with the procedures
set forth in Subdivision 8.13.2 and 8.13.3 of this Section.
L. Change of Information. A licensee must promptly notify the City of a change in the
information or facts required to be furnished on the application for a license, even after the
license has been issued. Failure to comply with this subsection is cause for suspension or
revocation of the license.
M. Transfer of License. Each license shall be issued only to the applicant and for the premises
described in the application. No license may be transferred to another person or place
without application to the City in the same manner as an application for a new license. The
transfer of 25% or more of the ownership interests, or a controlling interest, whichever is
less, of a licensee or a parent shall be deemed a transfer of the license. Transfer of a license
without prior City approval is a ground for revocation or suspension of the license. In
addition, each day the licensee operates under the license after a transfer has taken place
without obtaining City approval is be a separate violation of this ordinance.
N. Death of Licensee. In the case of the death of a licensee who is a natural person, the
personal representative of the licensee may continue operation of the business for not
more than ninety (90) days after the licensee's death.
Subd. 7. Conditions, Restrictions, and Regulations.
A. Generally. Every license is subject to the conditions, restrictions, and regulations in the
following paragraphs, all other provisions of this Section, and of any other applicable
provisions of the City Code or State law.
B. Maintenance of Peace. Every licensee is responsible for the conduct of its place of business
and the conditions of order in it. The act of any employee of the licensee shall be deemed
the act of the licensee as well, and the licensee shall be liable for all penalties provided by
this ordinance equally with the employee, except criminal penalties.
C. Display of License. Every license must be posted in a conspicuous place in the premises
for which it is used.
D. Record Keeping.
1. Electronic Recording. At the time of a receipt of property, a licensee shall
immediately record, in an electronic format approved by the Police Department,
the following information:
a. An accurate description of the property including, but not limited to, any
trademark, identification number, serial number, model number, brand
name, or other identifying mark.
b. A photograph that clearly depicts the property received.
C. The date and time the item of property was received by the licensee.
d. The name, address, residence telephone number, date of birth, and
reasonably accurate physical description, including height, sex and race,
of the person from whom the property was received.
e. A photograph that clearly depicts the person from whom the property was
received.
f. The amount of money loaned upon or paid for the property.
g. The identification number from one of the following forms of
identification of the person from whom the property was received:
1. a valid Minnesota photo driver's license;
2. a valid Minnesota photo Identification Card;
3. if the person is not a Minnesota resident, a valid photo
identification card issued by the state (or province of Canada) of
residency of the person from whom the property was received,and
one other valid form of identification.
h. The amount paid or advanced.
i. The maturity date of a pawn transaction and the amount due.
j. The monthly and annual interest rates, including all pawn fees and
charges.
The licensee shall make this information available at all reasonable times for
inspection by the Police Department. This information shall be retained by the
pawnbroker or precious metal dealer for at least three (3) years.
2. Daily Reports. For the types of items listed below,the licensee must submit to the
Police Department on a daily basis a list of the following specific items purchased
or received that day. The list must be in the format approved by the Police
Department and must contain all of the information described above in subsection
D.1.
a. Any item with a serial number, identification number, or "Operation
Identification"number;
b. Cameras;
C. Electronic, audio, video or radar detection equipment;
d. Precious jewelry, gems and metals;
e. Artist-signed or artist-attributed works of art;
f. Firearms, for which a dealer's license to deal in, is required by the laws of
the State of Minnesota or the United States of America.
g. Any item not included in a — f above which the pawnbroker or precious
metal dealer intends to sell for more than $200, except for furniture and
kitchen or laundry appliances.
3. Holdinp, Period. Any item received by the pawnbroker or precious metal dealer
for which a report to the Police Department is required shall not be sold or
otherwise transferred,or in the case of precious metal,melted down or dismantled,
for thirty (30) days after the date of such report to the police. However, a person
may redeem a pawned item seventy-two (72)hours after the item was received by
the pawnbroker or precious metal dealer, excluding Sundays and legal holidays.
E. Video or Photographic Record. A pawnbroker or precious metal dealer must install and
maintain on the licensed premises video surveillance cameras, still digital cameras, or
similar devices positioned to record or photograph a frontal view showing a readily
identifiable image of the face of each person selling or pawning any property. The video
camera or still digital camera must be kept in operating condition and must be shown upon
request to a properly identified law enforcement officer for inspection. The camera must
record and display the accurate date and time. The video camera or still digital camera must
be turned on at all times when the licensed premises is open for business. Recordings and
images required by this paragraph must be retained by the pawnbroker or precious metal
dealer for thirty (30) days and shall at all reasonable times be open to the inspection of any
properly identified law enforcement officer.
F. Receipts. The licensee shall provide a receipt to the seller or pledger of any item of
property received, which shall be numbered to correspond to the entry in the licensee's
records and shall include:
1. The name, address, and phone number of the licensee.
2. The date on which the item was received by the licensee.
3. A description of the item received and amount paid to the pledger or seller in
exchange for the item pawned or sold, and whether it was pawned or sold.
4. The signature of the licensee or agent.
5. If the property can be redeemed,
a. The last regular business day by which the item must be redeemed by the
pledger without risk that the item will be sold and the amount necessary to
redeem the property on that date.
b. The annual rate of interest charged on pawned items received.
6. The name and address of the seller or pledgor.
G. Stolen or Lost Property. A pawnbroker or precious metal dealer must report to the Police
Department any item pledged or received, or sought to be pledged or received, if the
pawnbroker or precious metal dealer has reason to believe that the article was stolen or
lost.
H. Police Restrictions on Sale or Redemption. Whenever the Police Department notifies the
licensee not to sell an item, the item shall not be sold or removed from the licensed
premises until authorized to be released by the Police Department.
I. Infection of Items.
1. Inspection bey. The pawnbroker or precious metal dealer shall, at all times
during the term of the license, allow the Police Department to enter the premises
where the pawnbroker or precious metals dealer business is located and any other
premises where items purchased or received as part of the business are stored, for
the purpose of inspecting such premises and the property therein to locate items
suspected or alleged to have been stolen or otherwise improperly disposed of.
2. Inspection by Claimants. Additionally,all the items coming into possession of the
licensee shall at all times be open to inspection and right of examination of any
person claiming to have been the owner thereof or claiming to have any interest
therein, when such person is accompanied by a properly identified law
enforcement officer.
J. Payment by Check. Payment by the licensee for any articles deposited, left, purchased,
pledged or pawned, shall be made only by check, draft, or other negotiable or
nonnegotiable instrument or order of withdrawal which is drawn against funds held by a
financial institution.
K. Gambling. No licensee may keep, possess, or operate, or permit the keeping, possession,
or operation on the licensed premises of dice, slot machines, roulette wheels,
punchboards, blackjack tables, or pinball machines which return coins or slugs, chips, or
tokens or any kind, which are redeemable in merchandise or cash. No gambling
equipment authorized under Minnesota Statutes Chapter 349 may be kept or operated and
no raffles may be conducted on the licensed premises and/or adjoining rooms. The
purchase of lottery tickets may take place on the licensed premises as authorized by the
director of the lottery pursuant to Minnesota Statutes Chapter 349A.
L. Oversized Items. All items must be stored within the licensed premises building, except the
City may permit the licensee to designate one (1) locked and secured warehouse building
within the City within which the licensee may store oversized items. No item may be stored
in the designated warehouse building that is not reported in the record pursuant to
subparagraph D above. The licensee shall permit immediate inspection of the warehouse at
any time during business hours by the Police Department. Oversized items may not be
stored in parking lots or other outside areas. All provisions in this subparagraph regarding
recordkeeping and reporting shall apply to oversized items.
M. Off-Site Sales/Storaize. All items accepted by a licensee at a licensed location in the City
shall be for pledge or sale through a licensed location in the City. No licensee under this
Section shall sell any items which are transferred from a non-licensed facility or a licensed
facility outside the City.
N. Restrictions on Weapons.
1. A pawnbroker or precious metal dealer may not receive as a pledge, accept for
consignment or sale, or otherwise deal in any firearm for which a dealer's license
to deal in, is required by the laws of the State of Minnesota or the United States
of America unless the pawnbroker or precious metal dealer holds such a firearms
dealer's license.
2. A pawnbroker or precious metal dealer may not receive as a pledge or otherwise,
or accept for consignment or sale, a firearm which a person is prohibited from
possessing or transferring pursuant to the laws of the State of Minnesota or the
United States of America.
O. Printed Pawn Tickets. The pledgor or seller in a pawn transaction shall sign a pawn ticket
and receive an exact copy of the pawn ticket. The following shall be printed on all pawn
tickets:
1. "Any personal property pledged to a pawnbroker within this state is subject to sale
or disposal when there has been no payment made on the account for a period of
not less than sixty (60) days past the date of the pawn transaction, renewal, or
extension; no further notice is necessary. There is no obligation for the pledgor to
redeem pledged goods,
2. The pledgor of this item attests that it is not stolen,it has no liens or encumbrances
against it, and the pledgor has the right to sell or pawn the item,
3. This item is redeemable only by the pledgor to whom the receipt was issued, or
any person identified in a written and notarized authorization to redeem the
property identified in the receipt, or a person identified in writing by the pledgor
at the time of the initial transaction and signed by the pledgor. Written
authorization for release of property to persons other than the original pledgor
must be maintained along with the original transaction record," and
4. A blank line for the pledgor's signature.
P. Effect of Nonredemption.
1. A pledgor shall have no obligation to redeem pledged goods or make any payment
on a pawn transaction. Pledged goods not redeemed within at least sixty(60)days
of the date of the pawn transaction shall automatically be forfeited to the
pawnbroker, and qualified right, title, and interest in and to the goods shall
automatically vest in the pawnbroker.
2. The pawnbroker's right,title, and interest in the pledged goods under paragraph 1.
is qualified only by the pledgor's right, while the pledged goods remain in
possession of the pawnbroker and not sold to a third party, to redeem the goods by
paying the loan plus fees and/or interest accrued up to the date of redemption.
3. A pawn transaction that involves holding only the title to the property is subject
to Minnesota Statutes Chapters 168A or 336.
Q. Permitted Charges.
1. Notwithstanding any other statute, ordinance, rule, or regulation, a pawnbroker
may contract for and receive a pawnshop charge not to exceed three percent per
month of the principal amount advanced in the pawn transaction plus a reasonable
fee for storage and services. A fee for storage and services may not exceed $20 if
the property is not in the possession of the pawnbroker.
2. The pawnshop charge allowed under Subdivision 7.Q.1. shall be deemed earned,
due, and owing as of the date of the pawn transaction and a like sum shall be
deemed earned, due, and owing on the same day of the succeeding month.
However,if full payment is made more than two weeks before the next succeeding
date the pawnbroker shall remit one-half of the pawnshop charge for that month
to the pledgor.
3. Interest shall not be deducted in advance, nor shall any loan be divided or split so
as to yield greater interest or fees than would be permitted upon a single,
consolidated loan or for otherwise evading any provisions of this section.
4. Any interest, charge, or fees contracted for or received, directly or indirectly, in
excess of the amount permitted under this Subdivision 7.Q., shall be uncollectible
and the pawn transaction shall be void.
5. A schedule of charges permitted by this paragraph shall be posted on the
pawnshop premises in a place clearly visible to the general public.
R. Records, Prohibitions. A pawnbroker and any clerk, agent, or employee of a pawnbroker
may not:
1. Make any false entry in the records of pawn transactions.
2. Falsify, obliterate, destroy, or remove from the place of business the records,
books, or accounts relating to the licensee's pawn transactions.
3. Refuse to allow the appropriate law enforcement agency, the attorney general, or
any other duly authorized state or federal law enforcement officer to inspect the
pawn records or any pawn goods in the person's possession during the ordinary
hours of business or other times acceptable to both parties.
4. Fail to maintain a record of each pawn transaction for three (3) years.
5. Accept a pledge or purchase property from a person under the age of eighteen(18)
years.
6. Make any agreement requiring the personal liability of a pledgor or seller, or
waiving any provision of this Section, or providing for a maturity date less than
one month after the date of the pawn transaction.
7. Fail to return pledged goods to a pledgor or seller, or provide compensation as set
forth in Minnesota Statutes Section 325J.09 upon payment of the full amount due
the pawnbroker unless either the date of redemption is more than 60 days past the
date of the pawn transaction, renewal, or extension and the pawnbroker has sold
the pledged goods pursuant to Minnesota Statutes Section 325J.06, or the pledged
goods have been taken into custody by a court or a law enforcement officer or
agency.
8. Sell or lease, or agree to sell or lease, pledged or purchased goods back to the
pledgor or seller in the same, or a related, transaction.
9. Sell or otherwise charge for insurance in connection with a pawn transaction.
10. Remove pledged goods from the pawnshop premises or other storage place
approved by the City at any time before the expiration of the redemption period
pursuant to Subdivision 7.S. of this Section. However, (i) a pawnbroker is
permitted to return pledged goods to the borrower at any time during the
redemption period, (ii) a pawnbroker is permitted to sell the pledged goods or
remove the pledged goods from the pawnshop premises or other storage at any
time after the expiration of the redemption period set forth in Subdivision 7.S.,
and (iii) a pawnbroker who purchases goods not involving a pawn transaction is
permitted to sell or remove the purchased goods from the pawnshop premises or
other storage 31 days or later from the purchase transaction date.
S. Redemption; Risk of Loss. Any person to whom the receipt for pledged goods was
issued, or any person identified in a written and notarized authorization to redeem the
pledged goods identified in the receipt, or any person identified in writing by the pledgor
at the time of the initial transaction and signed by the pledgor shall be entitled to redeem
or repurchase the pledged goods described on the ticket. In the event the goods are lost
or damaged while in possession of the pawnbroker,the pawnbroker shall compensate the
pledgor, in cash or replacement goods acceptable to the pledgor, for the fair market value
of the lost or damaged goods. Proof of compensation shall be a defense to any prosecution
or civil action.
T. Motor Vehicle Title Pawn Transactions; Special Provisions.
1. In addition to the other requirements of this Section, a pawnbroker who holds a
title to a motor vehicle as part of a pawn transaction shall:
a. Be licensed as a used motor vehicle dealer under Minnesota Statutes
Section 168.27, and post such license on the pawnshop premises;
b. Verify that there are no liens or encumbrances against the motor vehicle
with the Minnesota Department of Public Safety; and
C. Verify that the pledgor has automobile insurance on the motor vehicle as
required by law.
2. A pawnbroker may not sell a motor vehicle covered by a pawn transaction until
ninety (90) days after recovery of the motor vehicle.
Subd. 8. Suspension or Revocation
A. Grounds for Suspension or Revocation. The City may suspend or revoke a license issued
under this Section. The following are grounds for suspension or revocation of a license:
1. Fraud, misrepresentation, or false statement contained in a license application or a
renewal application;
2. Fraud, misrepresentation, or false statement made in the course of carrying on the
licensed business;
3. Failure to comply with City ordinances or state law;
4. Conviction of the owner, manager, lessee, or an employee of the business of a
violation of any ordinance or state or federal statute, arising on the licensed
premises;
5. A pending criminal charge, citation, or complaint, or a conviction or other
adjudication of guilt, of the owner, manager, or an employee of the licensed
business of a violation of any ordinance or state or federal statute which adversely
reflects upon the person's ability to conduct the licensed occupation in a legal
manner,which violations shall include,but are not limited to,theft,receiving stolen
property, and fraudulent business practices.;
6. Conducting the licensed business in an unlawful manner or in such a manner as to
constitute a breach of the peace or to constitute a menace to the health, safety, or
general welfare of the community; or
7. The existence of any grounds for denial of a license identified in Subdivision 5 of
this Section, which existed at the time the license was issued or arose subsequent
to the issuance of the license.
B. Procedure.
1. Notice. Except as provided in subsection D below, a suspension or revocation shall
be preceded by written notice from the Chief of Police or his or her designee to the
licensee and an opportunity for a hearing. The notice shall state the nature of the
violation(s) or grounds for suspension or revocation and shall inform the licensee
of the licensee's right to request a hearing within ten(10)days of the date contained
in the notice to dispute the suspension or revocation. The notice shall be mailed by
regular mail to the licensee at the most recent address listed on the license
application. If a hearing request is not received by the City within ten (10) days of
the date contained in the notice, the licensee's right to a hearing shall be deemed
waived.No suspension or revocation of a license under this Section shall take effect
until (a) the licensee's time to request a hearing expires; or (b) if a hearing is
requested, after the licensee is informed of the decision of the City Manager.
2. Hearing. If a hearing is requested, the Chief of Police or his or her designee shall
provide written notice to the licensee of the date,time and place of the hearing. The
notice shall be served in the same manner as the initial notice. The notice shall be
served no less than fifteen (15) day and no more than thirty (30) days prior to the
hearing. The hearing shall be held by an impartial hearing officer who shall be
appointed by the Chief of Police or his or her designee. Upon conclusion of the
hearing, the hearing officer shall, within ten (10) days, make his or her
recommendation to the City Manager in writing. If the hearing officer's
recommendation is denial of a renewal application, suspension or revocation, he or
she shall include in the written recommendation his or her findings and conclusions
supporting the decision.
3. Decision. Within thirty (30) days of receipt of the hearing officer's written
recommendation, the City Manager shall make a decision on whether the license
shall be denied renewal, suspended or revoked. The City Manager shall inform the
licensee in writing of the decision, including findings and conclusions supporting
the decision, within ten (10) days.
4. Appeal. No appeal is allowed to the City Council under Section 2.80 of the City
Code from a decision of the City Manager under this Section. The City Council
may, on its own motion, determine to review the decision of the City Manager.
C. Preexisting Contracts. No expiration, revocation, suspension, or surrender of any license
shall impair or affect the obligation of any preexisting lawful contract between the licensee
and any pledgor.
D. Immediate Temporary Suspension. Any conviction of the licensee or an employee of the
licensee for theft, burglary, robbery, receiving stolen property, or any other crime or
violation involving stolen property shall result in the immediate suspension of the license
until a hearing can be held on in accordance with subsection B of this subdivision. The
hearing on the suspension shall be held within five (5) business days of the date of the
temporary suspension.
Subd. 9. Violation a Misdemeanor. A person who commits or attempts to commit, conspires to
commit or aids or abets in the commission of an act constituting a violation of this Section,whether
individually or in connection with one or more other persons or as principal, agent, or accessory
is guilty of a misdemeanor. A person who falsely, fraudulently, forcibly or willfully induces,
causes, coerces, permits or directs another to violate a provision of this Section is guilty of a
misdemeanor.
Section 2. City Code Chapter 1 entitled "General Provisions and Definitions Applicable to the
Entire City Code Including Penalty for Violation" and Section 5.99 entitled "Violation a
Misdemeanor" are hereby adopted in their entirety, by reference, as though repeated verbatim
herein.
Section 3. This ordinance shall become effective from and after the date of its passage and
publication.
FIRST READ at a regular meeting of the City Council of the City of Eden Prairie on the 4th day
of December, 2018, and finally read and adopted and ordered published at a regular meeting of the
City Council of said City on the 4th day of December, 2018.
Kathle Porta, City Clerk N cy ra,-IA<ens, a r
Published in the Eden Prairie News on the 131h day of December, 2018.
CITY OF EDEN PRAIRIE
HENNEPIN COUNTY, MINNESOTA
SUMMARY OF ORDINANCE NO. 23-2018
AN ORDINANCE OF THE CITY OF EDEN PRAIRIE, MINNESOTA AMENDING
CITY CODE CHAPTER 5, SECTION 5.71 RELATING TO PAWNBROKERS AND
PRECIOUS METAL DEALERS; AND ADOPTING BY REFERENCE CITY CODE
CHAPTER 1 AND SECTION 5.99 WHICH AMONG OTHER THINGS CONTAIN
PENALTY PROVISIONS
THE CITY COUNCIL OF THE CITY OF EDEN PRAIRIE, MINNESOTA, ORDAINS:
Summary: This ordinance amends City Code Section 5.71 relating to pawnbrokers and
precious metal dealers by deleting certain definitions; revising the list of persons ineligible for a
license; making minor revisions and updates to the conditions, restrictions, and requirements
imposed on licensees; and revising and reorganizing the subdivisions for procedural consistency
with other Chapter 5 licensing sections.
Effective Date: This Ordinance shall take effect upon publication.
ATTEST:
Kathleen Porta, City Clerk c,�IyrAulce'65Nayor
PUBLISHED in the Eden Prairie News on December 13, 2018.
(A full copy of the text of this Ordinance is available from City Clerk.)
Affidavit of Publication
Southwest Newspapers
State of Minnesota )
)SS.
County of Hennepin )
Laurie A. Hartmann, being duly sworn, on oath says that she is the authorized agent of the
CITY OF EDEN PRAIRIE publisher of the newspapers known as the Eden Prairie News and Lakeshore Weekly News and
HENNEPIN COUNTY, has full knowledge of the facts herein stated as follows:
MINNESOTA
SUMMARY OF ORDINANCE
NO.23-2018 (A) This newspaper has complied with the requirements constituting qualification as a
AN ORDINANCE OF THE legal newspaper, as provided by Minnesota Statute 331A.02, 331A.07, and other applicable
CITY OF EDEN PRAIRIE, laws,as amended.
MINNESOTA AMENDING CITY
CODE CHAPTER 5,SECTION 5.71
RELATING TO PAWNBROKERS (B) The printed public notice that is attached to this Affidavit and identified as
AND PRECIOUS METAL No._3LY was published on the date or dates and in the newspaper stated in the attached
DEALERS; AND ADOPTING BY REFERENCE CITY CODE Notice and said Notice is hereby incorporatedas part art of this Affidavit.Said notice was cut from
CHAPTER 1 AND SECTION the columns of the newspaper specified.Printed below is a copy of the lower case alphabet from
5.99 WHICH AMONG OTHER A to Z,both inclusive,and is hereby acknowledged as being the kind and size of type used in
THINGS CONTAIN PENALTY
PROVISIONS the composition and publication of the Notice:
THE CITY COUNCIL OF
THE CITY OF EDEN PRAIRIE, abcdefghijklmnopgrstuvwx
MINNESOTA,ORDAINS:
Summary: This ordinance
amends City Code Section 5.71
relating to pawnbrokers and B l
precious metal dealers by deleting
certain definitions;revising the Laurie A.Hartmann
list of persons ineligible for a
license;making minor revisions
and updates to the conditions, Subscribed and sworn before me on
restrictions, and requirements
imposed on licensees; and
revising and reorganizing the
subdivisions for procedural this da of �-2018
consistency with other Chapter y
5 licensing sections.
Effective Date: This
Ordinance shall take effect upon
publication. JYMME JUMEM BARK
Nancy Tyra-Lukens,Mayor v NOTARY PUBLIC MINNESOTA
ATTEST: Kathleen Porta,City
Clerk full copy of the text of t ublic MY COMMISSION EXPIRES 01131123
this Ordinance is available from
City Clerk.)
(Published in the Eden Prairie
News on Thursday,December 13,
2018-,No 3457)
RATE INFORMATION
Lowest classified rate paid by commercial users for comparable space...$31.20 per column inch
Maximum rate allowed by law for the above matter................................... $31.20 per column
inch Rate actually charged for the above matter............................................... $12.97 per
column inch