City of Somers Point, NJ
Atlantic County
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Table of Contents
Table of Contents
[HISTORY: Adopted by the City Council of the City of Somers Point 2-26-2015 by Ord. No. 6-2015.[1] Amendments noted where applicable.]
GENERAL REFERENCES
Auctions — See Ch. 81.
Mercantile licenses — See Ch. 174.
Peddling and soliciting — See Ch. 202.
[1]
Editor's Note: This ordinance also repealed former Ch. 207, Precious Metals and Secondhand Goods, adopted 12-17-1992 by Ord. No. 27-1992.

§ 207-1 Statutory authorization; findings of fact; purpose and objectives.

A. 
The City Council hereby finds that there is a need to regulate and control the buying, selling, advertising and/or solicitation of gold, silver and precious or semiprecious gems or jewelry in order to prevent the easy disposal of items which have been unlawfully obtained as the result of crime while protecting and recognizing the legitimate businesses which are engaged in the buying and selling of gold, silver and precious or semiprecious gems or jewelry.
B. 
The City Council hereby finds that there is a need to regulate and control the buying and selling of other metals such as aluminum, copper, magnesium and ferrous which have been unlawfully obtained as the result of crime while protecting and recognizing the legitimate businesses which are engaged in the buying and selling of such metals in accordance with N.J.S.A. 45-28-1 et seq. and the rules and regulations promulgated thereunder.
C. 
The City Council hereby finds that there is a need to regulate and control the buying, selling, advertising and/or solicitation of gift cards and secondhand goods which have been unlawfully obtained as the result of crime while protecting and recognizing the legitimate businesses which are engaged in the buying and selling of such cards and goods in accordance with N.J.S.A. 45:22-1 et seq. and the rules and regulations promulgated thereunder.
D. 
It is the intent of this chapter to assist law enforcement officials and victims of crime in recovering those items identified in Subsections A, B, or C above by requiring reasonable reporting, maintenance and distribution criteria for buyers, dealers and transient buyer as defined in this chapter.

§ 207-2 Definitions; word usage.

For the purposes of this chapter, the following terms, phrases, words and their derivations shall have the meanings ascribed herein. Words used in the present tense shall include the future, words in the plural number shall include the singular number and words in the singular number shall include the plural number. The word "shall" is always mandatory and not merely directory.
ACCEPTABLE IDENTIFICATION
Acceptable forms of identification include: a current valid photo New Jersey driver's license or New Jersey identification card, a current valid photo driver's license issued by another U.S. state, a valid United States passport, or other verifiable valid United States government-issued photo identification with address. All of the above listed acceptable identifications require the dealer to capture/record evidence of the person's current address.
ANTIQUE
Any secondhand good the value of which, in whole or substantial part, is derived from its age or its historical association and exceeds the original value of the item when new.
ANTIQUE DEALER
Any dealer whose regular business includes selling or receiving secondhand goods where at least 90% of the goods on hand at all times, measured according to value, consists of antiques.
AUCTION HOUSE DEALER
Any dealer whose regular business includes selling or receiving secondhand goods some or all of which are offered for sale for the highest bid or offer tendered. If the sale is conducted by means of an auction, the auctioneer must be properly licensed and bonded in accordance with applicable laws.
ARTICLE
Any article of merchandise, including any portion of such article, whether a distinct part thereof or not, including every part thereof whether separable or not, and also including material for manufacture. This term shall also include the definition of "article" as the same appears in N.J.S.A. 51:6-1, as that statute may be amended from time to time.
BILLABLE TRANSACTION
Every transaction conducted by a licensee required to be reported to the City Police Department under § 207-11 of this chapter.
BUYER
Any person, partnership, corporation, sole proprietorship, association, or other entity, who or which, through any means, buys, transfers or obtains from consignment articles made of or containing gold, silver, precious or semiprecious metals or gems or jewelry, other metals, or secondhand goods as defined in this chapter, and includes anyone advertising the purchase or sale of any of the aforementioned items.
CHIEF OF POLICE
The Chief of Police of the City of Somers Point or his designee/representative.
COIN DEALER
A dealer whose regular business includes the buying, selling, and trading of coins, stamped metal, monetized bullion or commercial grade ingots of gold, or silver. The coins may be legal tender or otherwise and may be made of precious metals, gold, silver or platinum.
CONSIGNMENT
An agreement between a dealer and a seller that enables the dealer to take temporary possession of secondhand property, owned by the seller, for the purpose of offering it for sale to the public.
CONSIGNMENT HOUSE DEALER
A dealer in secondhand goods acquired by a consignment agreement.
DATABASE
A computerized Internet-capable database with hardware and software compliant with standards set by the Chief of Police.
DEALER
Any person, partnership, corporation, sole proprietorship, association, or other entity, who or which, through any means, buys, sells, transfers or obtains from consignment articles made of or containing gold, silver, precious or semiprecious metals or gems or jewelry, other metals, or secondhand goods as defined in this chapter and includes anyone advertising or soliciting the purchase or sale of any of the aforementioned items.
DESIGNATED VENDOR
A person or entity who is appointed or designated by the Chief of Police who is authorized to collect and maintain precious metal transaction information or other purchase information as defined herein, for the City of Somers Point.
EMPLOYEE
Any person working for a buyer or dealer, whether or not the person is in the direct employment of the buyer or dealer or works full time or part time, who handles gold, silver, precious or semiprecious metals or gems or jewelry, other metals, or secondhand goods for the buyer or dealer. "Employee" shall not mean a person employed by a bank, armored car company or other business entity acting in the sole capacity of bailee-for-hire relationship with a buyer or dealer.
FLEA MARKET
Any group of five of more unrelated persons or businesses selling secondhand goods to the public from a single physical location.
GEM
Any precious or semiprecious stone or item containing a precious or semiprecious stone customarily used in jewelry or ornamentation.
GIFT CARD
A restricted monetary equivalent or scrip that is issued by retailers or banks to be used as an alternative to a nonmonetary gift.
GOLD
Any article or product with a gold content, without regard to the fineness thereof.
ITEM
Any single physical article; however, with respect to a commonly accepted grouping of articles that are purchased as a set and have greater value as a set than the combined value of its components set if sold individually, the term "item" shall refer to the set.
INTERNET AUCTION
The sale of merchandise on the World Wide Web, or Internet, by a person who is registered with and assigned a designated account or user name by the Internet website hosting the auction.
ITINERANT BUSINESS
Any business conducted intermittently within the City of Somers Point or at varying locations.
LICENSED PREMISES
The compact and contiguous premises described in the approved license issued by the City of Somers Point.
MINOR
Any person under the age of 18 years.
OTHER METALS
Any item made of aluminum, copper, magnesium or other ferrous metals.
PAWN
A bailment of personal property as security for any debt or engagement redeemable upon certain terms and with the implied power of sale or default.
PERSON
Any individual natural person, partnership, joint venture, business, society, associate, club, trustee, trust, corporation, or unincorporated group, or an officer, agent, employee, servant, factor or any form of personal representative of any thereof, in any capacity, acting for self or on behalf of another.
PRECIOUS OR SEMIPRECIOUS GEM
Comprised of gold, silver, sterling, platinum and/or their alloys as defined in N.J.S.A. 51:5-1 et seq., N.J.S.A. 51:6-1 et seq. and/or N.J.S.A. 51:6A-1 et seq.; gems, gemstones, coins and all forms of jewelry herein contained. Not limited to those categories known as "diamonds," "rubies," "pearls" and "sapphires" and commonly called a "jewel."
PUBLIC
Individuals and retail sellers, not to include wholesale transactions or transactions between other merchants.
PURCHASE
Includes any exchange of gold, silver, precious or semiprecious metals or gems or jewelry, other metals, or secondhand goods as defined in this chapter for anything of value. A purchase or payment need not be made by way of money in order to constitute purchase for the purposes of this chapter. For purposes of this chapter, a purchase may include an exchange, deposit, pledge, conveyance or trade of any tangible or intangible article.
REGULATED ACTIVITY
The purchase of any used item as defined in § 207-1A, B and C.
REPORTABLE TRANSACTION
Every transaction conducted by a dealer in which precious metals, or other tangible property, are purchased from or exchanged from with the public.
SECONDHAND GOODS
Any article previously sold, acquired, exchanged, conveyed, traded or otherwise formerly owned, including but not limited to:
A. 
Antiques;
B. 
Antique weapons, both bladed and firearms;
C. 
Clothing;
D. 
Collectibles (such as, stamps, coins, comic books, sports memorabilia, etc.);
E. 
Furniture;
F. 
Gems;
G. 
Gift cards;
H. 
Jewelry;
I. 
Musical instruments;
J. 
Paintings;
K. 
Precious metals (as defined in § 207-2 of this chapter) including but not limited to:
(1) 
Coins;
(2) 
Gems and gemstones;
(3) 
Gold (old gold, scrap gold, etc.);
(4) 
Silver;
(5) 
Sterling;
(6) 
Platinum;
L. 
Portable electronics, including but not limited to:
(1) 
Blu-ray/DVD or CD players/recorders;
(2) 
Camcorders;
(3) 
Cameras;
(4) 
Car stereos;
(5) 
Cellular telephones and accessories;
(6) 
Computers (desktop, laptop, tablets, PDAs, computer hardware and software);
(7) 
Computer printers;
(8) 
Game systems and components;
(9) 
Video games with game systems and components;
(10) 
Home electronics/audio and visual equipment;
(11) 
iPods and iPads;
(12) 
MP3 players;
(13) 
Scanners;
(14) 
Word processors;
M. 
Scales;
N. 
Sporting goods of all kinds;
O. 
Televisions;
P. 
Any and all other used item(s) of value.
A. 
Any person who or which, through any means, sells, transfers or offers by consignment gold, silver, precious or semiprecious metals or gems or jewelry or other metals as defined in this chapter.
B. 
The term "seller" includes "solicitor," "canvasser," "vendor," "auctioneer," "itinerant vendor" and "transient merchant" as same are defined in Chapter 202 of the Somers Point Municipal Code.
SILVER
Any article or product with a silver content, without regard to the fineness thereof.
TRANSIENT BUYER
A dealer who has not been in any retail business continuously for at least six months at that address in the municipality where the dealer is required to register or who intends to close out or discontinue all retail business in the City of Somers Point within six months. The term "transient buyer" will also include a dealer who intends to close out or discontinue all retail business in the City of Somers Point within six months, or as so defined in N.J.S.A. 51:6A-5 and N.J.A.C. 13:47C-1.1. Vendors doing business during a community event sponsored or sanctioned by the City of Somers Point shall not be considered a transient buyer for purposes of this chapter.
USED ITEM CONTAINING GOLD OR SILVER
Any item containing gold or silver previously sold, traded or transferred to a consumer for the personal use or enjoyment of such consumer.

§ 207-3 License required.

No buyer or dealer shall engage in a regulated activity, as defined above, without having first obtained a license therefor from the City Clerk, which license shall bear a number issued by the City Clerk and shall be prominently displayed within the licensed premises. The requirement of a license shall apply to the buyer and/or dealer and to any individual employee who engages in a regulated activity on behalf of a buyer or dealer. Hereinafter the term "licensee" shall refer to a buyer, dealer, transient buyer, or to any individual employee who engages in a regulated activity on behalf of a buyer or dealer.

§ 207-4 License fees.

A. 
At the time of filing the application for a license, a nonrefundable license fee of $200 shall be paid for the annual license for the premises where the activity is to be conducted, together with a fee of $100 for each person working under the premises license. Thereafter, the annual, nonrefundable renewal fee for the premises will be $200; and for each person working under the premises license, $100. The fee shall not be prorated.
B. 
This license fee shall apply to every dealer required to be licensed by the City of Somers Point in compliance with this chapter and shall be in lieu of payment of the mercantile license fee set forth in Chapter 174 of this Code.
C. 
This license fee shall be in addition to any fee or cost associated with a dealer's obligation to comply with § 207-11 of this chapter mandating the electronic reporting of all transactions.

§ 207-5 Nontransferability and terms of license.

A licensed issued under the provisions of this chapter shall not be transferable and shall terminate December 31 of the year in which said license is issued, unless it is renewed in accordance with and pursuant to the provision of this chapter.

§ 207-6 Application for license.

An application for a license shall be in writing on forms available from the City Clerk. The application form and pertinent information required shall be developed by the City of Somers Point through its Police Department, and the application shall be amended from time to time as necessary in order to provide the necessary information required by the Police Department to comply with the intent of this chapter. The application shall provide the following information on said application:
A. 
Name and address of licensee;
B. 
Address from which licensee shall conduct business;
C. 
Copy of valid permit from the City of Somers Point;
D. 
Proof that he or she is a citizen of the United States or a person satisfying all requirements of the immigration and naturalization laws, or other applicable law, for holding gainful employment in the United States;
E. 
The original or a certified copy of a valid certificate of authority issued by the Director of the New Jersey Division of Taxation, pursuant to N.J.S.A. 54:32B-15, empowering the vendor to collect sales tax. Certificates shall not be required for the sale of property exempted from sales and use taxation pursuant to N.J.S.A. 54:32B-8.2. Every applicant who held a license issued under this article during the year preceding the application shall present proof of payment of New Jersey sales tax required pursuant to N.J.S.A. 54:32B-1 et seq.;
F. 
A completed New Jersey State Bureau of Identification form authorizing release of any criminal history record information (known commonly as a "yellow sheet"), accompanied by a money order in the amount specified by the City Clerk to process each such yellow sheet, payable as directed.
G. 
Proof that the licensee has obtained computer equipment and software required in § 207-11B of this chapter, for purposes of reporting all transaction data in electronic format to the Somers Point Police Department.

§ 207-7 Investigation of applicant; issuance or denial of license; appeal.

A. 
Upon receipt of an application completed pursuant to this chapter, the Clerk shall refer the application to the Chief of Police, who shall fingerprint the applicant and institute such investigation of the applicant's moral character and business responsibility as the Chief of Police deems necessary for the protection of the public welfare. In the event that the licensee is a business entity other than a sole proprietorship, the officers in a corporation or the partners in a partnership (or limited partnership) shall be deemed to be the applicant(s) who shall be fingerprinted and investigated according to this chapter. Upon completion of the investigation, the Chief of Police shall return the application or a copy thereof to the Clerk, accompanied by a recommendation as to whether the license should be issued or denied. Upon issuance of the license, the Clerk shall give the applicant a copy of this chapter.
B. 
If the recommendation of the Chief of Police is to deny the license, the grounds for the recommendation shall be stated in writing. Any person aggrieved by such denial may file a written appeal to the City Council through the City Clerk within 15 business days from the date of denial. This appeal may be perfected by service of a notice of appeal on the City Clerk either personally or by certified mail. The City Council shall conduct a hearing on an appeal within 30 business days of the City Clerk's receipt of the filing of a notice of appeal, and a decision shall be rendered, in writing, on the appeal within 20 business days of the close of the hearing. The City Council may confirm or reverse the denial as deemed advisable.
C. 
As to any applicant for a license under this chapter, the Police Department of the City of Somers Point shall, upon the initial application, conduct a full state background investigation. The Chief of Police shall report the results of such investigation to the City Council as soon as possible. With respect to subsequent renewals of the license, the Police Department shall conduct a background investigation by applicant's name, social security number and date of birth for the purpose of the annual renewal of said application.
D. 
Persons and locations ineligible for a license.
(1) 
Individuals ineligible. No license shall be issued to an applicant who is a natural person if such applicant:
(a) 
Is not 18 years of age or older on the date the application is submitted to the City;
(b) 
Has been convicted of any crime directly related to the occupation licensed or registered and has not shown competent evidence of sufficient rehabilitation and present fitness to perform the duties of a precious metal dealer as prescribed by applicable New Jersey Statutes;
(c) 
Is not of good moral character or repute;
(d) 
Holds an alcohol beverage license;
(e) 
Has knowingly falsified or misrepresented information on the application;
(f) 
Is not the real party in interest in the business being licensed or registered;
(g) 
Has had an interest in a corporation, partnership, association, enterprise, business or firm that had a pawnbroker, precious metal or secondhand goods dealer's license denied or revoked by any governmental body as a result of a violation of law within five years of the date the application is submitted to the City;
(h) 
Owes taxes or assessments to the state or City that are due and delinquent; or
(i) 
Has been the subject of an investigation by a consumer protection agency, state attorney general's office, better business bureau, or similar group or agency and such investigation has indicated a pattern of disregard of consumer rights in the conduct of the business.
(2) 
Partnership ineligibility. No license shall be issued to an applicant that is a partnership if such applicant has any general partner or managing partner who cannot meet the requirements of §§ 207-6 and 207-7A, or if the partnership:
(a) 
Had a pawnbroker, precious metal or secondhand goods dealer's license denied or revoked as a result of a violation of law within five years of the date the application is submitted to the City;
(b) 
Owes taxes or assessments to the state or City that are due and delinquent; or
(c) 
Has been the subject of an investigation by a consumer protection agency, state attorney general's office, better business bureau, or similar group or agency and such investigation has indicated a pattern of disregard of consumer rights in the conduct of the business.
(3) 
Corporate and association ineligibility. No license shall be issued to an applicant that is a corporation or other organization if such applicant has any manager, proprietor, or agent in charge of the business to be licensed who cannot meet the requirements of §§ 207-6 and 207-7A, or if the corporation:
(a) 
Has had a pawnbroker, precious metal or secondhand goods dealer's license denied or revoked as a result of a violation of law within five years of the date the application is submitted to the Issuing City;
(b) 
Owes taxes or assessments to the state or City that are due and delinquent; or
(c) 
Has been the subject of an investigation by a consumer protection agency, state attorney general's office, better business bureau, or similar group or agency and such investigation has indicated a pattern of disregard of consumer rights in the conduct of the business.
E. 
Locations ineligible. The following locations shall be ineligible for a license or registration under this section:
(1) 
Claims due. No license shall be granted or renewed for operation on any property on which taxes, assessments, or other financial claims of the state or City are past due, delinquent, or unpaid.
(2) 
Improper zoning. No license shall be granted if the property is not properly zoned for precious metal dealers under Chapter 114 of this Code, unless the business is a legal, nonconforming use.

§ 207-8 Revocation of license; hearing.

A. 
Revocation.
(1) 
Any license may be revoked by the Chief of Police for any violation of this chapter, in addition to any other penalty imposed for any violation. Any license may be revoked if the licensee has failed to pay any fee or charge properly imposed under the authority of this chapter. Upon any violation, the Chief of Police may suspend a license upon written notice to the license holder.
(2) 
Upon receipt of the notice of suspension, the license holder may, within 10 calendar days, file with the City Clerk a written request for a hearing on the suspension before the City Council. The hearing shall be held within 30 business days of the request, at which hearing the license holder shall have the opportunity to be heard.
(3) 
At the conclusion of the hearing, the City Council shall either revoke the license or shall reinstate the license. In the event that the license holder shall not request a hearing, the license shall be automatically revoked upon the expiration of 10 calendar days after the notice of suspension has been given to the license holder.
B. 
Licenses issued under the provisions of this chapter may be revoked by City Council, after a hearing and upon notice to the applicant, as set forth in Subsection A above, for any of the following reasons:
(1) 
Fraud, misrepresentation or false statement in the application for license.
(2) 
Fraud, misrepresentation or false statement made in the course of carrying on the regulated activity of this chapter.
(3) 
Any violation of this chapter, including but not limited to:
(a) 
Failure by the licensee to enter all transaction information set forth in § 207-11B(1) through (8) into the database within 24 hours after purchase, receiving for pawn, or receiving for consignment from the public, any property, precious metals, metals, or secondhand goods as defined in § 207-2.
(b) 
Failure by the licensee to properly maintain computer equipment in a reasonable fashion or failure by the licensee to replace faulty computer equipment such as is required under § 207-11C.
(c) 
Failure by the licensee to admit to the premises during business hours any member of the Somers Point Police Department or other sworn law enforcement officer acting in the performance of their duty or to permit such officer(s) to conduct an inspection or review of records or regulated activity in accordance with § 207-11E.
(4) 
Conviction of any crime that is directly related to the occupation or business licensed or registered.
(5) 
Conviction of any disorderly persons offense involving moral turpitude.
(6) 
Conviction of an offense under the laws of the United States or any other state, which is substantially equivalent to the offenses named in Subsection B(4) or (5); or
(7) 
Conducting the regulated activity 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 and general welfare of the public.

§ 207-9 License valid for one place of business only.

No licensee shall, by virtue of one license, keep more than one place of business for receiving or taking goods.

§ 207-10 Doing business at unlicensed premises prohibited.

No licensee shall, at any time, do business at any place other than the place of business for which the license was granted.

§ 207-11 Record of transactions to be maintained.

Every licensee within the City of Somers Point shall, upon the purchase, receiving for pawn, or receiving for consignment, any property, precious metals, other metals, or secondhand goods from the public, as are defined in § 207-2, shall be required to do as follows:
A. 
Record using a unique transaction number on a numbered receipt the name, address and telephone number of the purchaser; the name, address and telephone number of the seller or sellers; the time and date of the transaction; the net weight in terms of pounds Troy, pennyweight (Troy) or kilograms/grams of the precious metals; fineness in terms of karats for gold, and sterling or coin for silver, in accordance with N.J.S.A. 51:5-1 et seq. and N.J.S.A. 51:6-1 et seq.; and any property containing a serial number.
(1) 
This information is to be documented through use of an electronic database software system as designated by the Chief of Police the information listed in § 207-11B(1) through (8).
(2) 
These records shall be subject to the inspection of any authorized police officer or any sworn law enforcement officer acting in the performance of their duty as set forth in Subsection E below.
(3) 
Every dealer shall be responsible for any and all costs associated with purchasing, maintaining and updating the electronic database software system, as well as any annual licensing or subscription fees. Said licensing and/or subscription fees associated with the electronic database software system shall be in addition to any other fees or costs required under this chapter.
B. 
Through the use of applicably required computer equipment, and using the electronic format approved by the Chief of Police, every dealer shall enter all transactions into the electronic database within 24 hours from the date of purchase or receipt of property for pawn, or consignment. The information entered will contain the information in Subsection A above, plus the following:
(1) 
The name, address, date of birth, telephone number and acceptable identification number of the seller;
(2) 
The receipt number;
(3) 
A full description of the item or items purchased, or pawned by the seller, including but not limited to marks, numbers, dates, sizes, shapes, initials, monograms and serial numbers, face value and identifying numbers of gift cards;
(4) 
The price paid for the item and the method of payment (such as, cash, check, trade, etc.);
(5) 
The form must be signed by the seller;
(6) 
The form must be legible bearing the name of the clerk or the dealer who made the transaction so as to readily identify that individual;
(7) 
A color photograph or color image of the seller's presented acceptable identification; and
(8) 
A color photograph or color image of all items sold. When photographing or imaging all items must be positioned in a manner that makes them readily and easily identifiable.
C. 
In the event of a database failure, or dealer's computer equipment malfunction, all transaction information is required to be submitted on paper forms approved by the Chief of Police within 24 hours from the date of purchase. In the event that paper forms are used, the dealer is responsible to enter all transaction information set forth in § 207-11B(1) through (8) into the database as soon as possible upon the dealer's equipment being repaired or replaced, of the database coming back into service. Failure by the dealer to properly maintain computer equipment in a reasonable fashion, or failure by the dealer to replace faulty computer equipment, may result in the dealer being cited for a violation of the ordinance and subsequently being subject to the penalties for doing so including revocation of the dealer's license under § 207-8.
D. 
Payment.
(1) 
Payment by a precious metal dealer for the purchase of a precious metal item shall be made only by a check, draft, or other negotiable or nonnegotiable instrument or order of withdrawal which is drawn against funds held by a financial institution.
(2) 
Payment by other than precious metal dealers to sellers in cash shall be limited to two transactions during a seven-day period for the same seller. The seven-day period will commence on the day of the first transaction and end seven days after the transaction, i.e. if transaction No. 1 occurs on Monday, the seven-day period ends on Sunday.
(3) 
Furthermore, no cash payments shall be made to the same sellers who make more than five transactions in any given thirty-day period. Sellers making transactions over the number of proscribed weekly and monthly periods will be paid by the dealer by means of a bank check drawn from the dealer's business account.
E. 
Special report. A report to the City Police Department must be made within 24 hours of that point where a licensee has received from the same seller in a series of transactions within a six-month period merchandise for which the licensee paid $500 or more.
F. 
Receipt. The licensee shall provide a receipt to the seller of any item of property received, with the exception of items purchased via an Internet auction, which shall include:
(1) 
The name, address and telephone 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 seller in exchange for the item sold.
(4) 
The signature of the licensee or agent; and
(5) 
The name and address of the seller.
G. 
It shall be the requisite duty of every dealer, and of every person in the dealer's employ, to admit to the premises during business hours any member of the Somers Point Police Department or other sworn law enforcement officer acting in the performance of their duty to examine any database, book, ledger, or any other record on the premises relating to the purchase, receiving for pawn, or receiving for consignment, any property, precious metals, other metals, or secondhand goods from the public, as defined in § 207-2. Somers Point Police Officers or other law enforcement officers acting in the performance of their duty are empowered to take possession of any article known by the police officer or official to be missing or to have been stolen, or where the officer or official has reasonable suspicion to believe the article is missing or stolen. A receipt will be provided to the dealer for any property seized by the Somers Point Police Department or other law enforcement officer.

§ 207-12 Exempt transactions.

The following items, when received by a licensee, are exempt from the recording and reporting requirements of this chapter, regardless of the purchase price paid by the licensee, asking price if consigned or brokered, or value attributed to it if accepted in trade:
A. 
A sale of property from a merchant, manufacturer, wholesaler, corporate entity or government entity, having an established place of business or goods sold at open sale from bankrupt stock provided the licensee must maintain a record of all such transactions which includes a written declaration of ownership that includes at a minimum the following:
(1) 
The seller's full corporate name, registered address, telephone number and federal Employee Identification Number ("EIN") or tax identification number, the full name of the chief executive officer, and a description of the seller's business;
(2) 
An accurate description of each item of property that must identify the item in a manner that relates to the transaction record including any unique identifier;
(3) 
A description of the nature of the transaction, such as trade, consignment or sale;
(4) 
The purchase price, asking price if consigned or value attributed to the item if accepted in trade; and
(5) 
A signed statement by the seller attesting that the seller is the true owner of the property, or proof of their authorization from the true owner to dispose of the items, and that the property is free from all other claims or liens.
B. 
Retail and wholesale sales of merchandise by the licensee originally received through a reportable transaction and for which all applicable hold periods have expired.
C. 
Garage sales: As used in this section, a garage sale is defined as the sale of used personal property by the lawful residents of residentially zoned property that is not conducted on a periodic or ongoing basis. A garage sale shall be deemed to be periodic or ongoing if a garage sale is held by the lawful resident of residentially zoned property more than five days in any consecutive ninety-day period.
D. 
Sales conducted by governmental, civic, patriotic, fraternal, educational, religious or benevolent organizations which have been in active and continuous existence for at least one year prior to the holding of the sale, or which are incorporated as a not-for-profit corporation by the state.
E. 
Sales or purchases which are regulated by the licensing laws of the State of New Jersey, including automobile dealers, used parts dealers and automotive parts recyclers.
F. 
Antique dealers: As used in this section, an antique or primitive is defined as an old and valuable art object or article no longer in production that is at least 50 years old. As used in this section, the term "sale" does not include an exchange, trade, or swap of items.

§ 207-13 Prohibited transactions.

A. 
A licensee shall not engage in regulated activity with any person under the age of 18 years, unless such minor is accompanied by a parent or guardian and said parent or guardian gives specific written consent to the transaction and acknowledges the receipt required by the buyer to be given to the seller.
B. 
A licensee shall not engage in regulated activity with any individual who is in an intoxicated state and/or is under the influence of intoxicating liquor, narcotics or hallucinogenic or habit-producing drugs or is otherwise chemically impaired or incompetent.
C. 
A licensee shall not engage in regulated activity with any individual whenever the item of property contains an altered or obliterated serial number, "operation identification" number or otherwise altered so as to remove, alter or obliterate a unique identifier of the property.

§ 207-14 Retention of articles.

A. 
Automatic retention period.
(1) 
All property purchased, received for pawn, or received for consignment, precious metals, other metals, or secondhand goods from the public as defined in § 207-1 are to be made available for inspection by the Chief of Police or any member of the Somers Point Police Department or other law enforcement officer acting in the performance of their duty for a period of seven business days from the date the transaction information is reported to the Chief of Police in accordance with § 207-11 above.
(2) 
All property, precious metals, other metals, secondhand goods as defined in § 207-2 shall remain in the same condition as when purchased and shall not be sold or disposed of, changed, modified, or melted by the purchaser until the seven-day retention period has expired. During the seven-business-day retention period, all property, precious metals, other metals, secondhand goods as defined in § 207-2 shall be placed in public view at the licensed location where the transaction occurred between licensee and seller.
B. 
Investigative retention period. Whenever a law enforcement official from any agency notifies a licensee not to sell an item, the item must not be sold or removed from the premises. The investigative hold shall be confirmed in writing by the originating agency within 72 hours and will remain in effect for 15 days from the date of initial notification, or until the investigative hold is cancelled, or until an order to hold/confiscate is issued, whichever occurs first.
C. 
Order to hold. Whenever the Chief of Police or the Chief's designee orders a licensee not to sell an item, the item must not be sold or removed from the premises until the Police Chief or the Chief's designee authorizes its release. The order to hold shall expire 90 days from the date it is placed on the property unless the Chief of Police or the Chief's designee determines the hold is still necessary and notifies the licensee in writing that the order is being extended.
D. 
Order to confiscate. Whenever an item is identified as stolen property or evidence of a crime the Chief of Police or the Chief's designee may either physically confiscate and remove it from the premises or place an order to hold on the property as provided above and leave it on the premises. When an item is confiscated, the Police Chief or Police Chief's designee must provide upon request their badge number, name, Police Department telephone number and the case number relating to the confiscation. When an order to hold or confiscate is no longer necessary, the Chief of Police or the Chief's designee shall so notify the licensee.

§ 207-15 Suspicious property.

A licensee or registrant must report to the City Police Department any article sold or received or sought to be sold or received, if the licensee or registrant has reason to believe that the article was stolen or lost. No licensee or registrant shall receive or accept any item of property which contains an altered, obliterated or obviously removed serial number or unique identifier.

§ 207-16 Surety bond.

A. 
Every applicant shall file with the City Clerk a good and sufficient surety bond, to be approved by the City Solicitor, in the amount of $10,000 for each license sought, executed by a surety company authorized and qualified to do business in the State of New Jersey. The bond shall run to the City of Somers Point for the benefit of any person or persons, injured by any wrongful act, default, fraud or misrepresentation of any violation of this chapter. Said bond shall contain the following language: "The obligation of this bond shall, in addition to the City of Somers Point, be and remain for the benefit of any person or persons who shall obtain a judgment against obligor, as a result of damage sustained in operation pursuant to any license granted under Chapter 207 of the Code of City of Somers Point."
B. 
The surety bond shall be kept for a minimum of one year from the date of issuance of license and must be renewed annually along with the license. The bond shall not be cancelled for any cause unless a notice of intention to cancel is filed at least 30 days before the requested cancellation date with the City Clerk with copy of the notice of intention mailed to the City Solicitor. The bond shall contain such a provision. The requirement of this chapter for obtaining a surety bond is in addition to any obligation imposed by the State of New Jersey upon a transient buyer of precious metals, pursuant to N.J.A.C. 13:47C-6.1.

§ 207-17 Change of license information.

A. 
A licensee or registrant under this chapter must immediately notify the City Clerk in writing of any of the following:
(1) 
A change in the corporate or organization officers listed in the application.
(2) 
Any changes in the partnership agreement.
(3) 
A change of the managing partner, store or general manager, proprietor, or other person who is in charge of the licensed or registered premises.
(4) 
Any change in the ownership of an establishment licensed or registered under this chapter, including any acquisition of an interest in the partnership, corporation, or other organization by any person not identified in the application.
B. 
When an establishment licensed or registered under this chapter is sold or transferred, the licensee shall immediately notify the City Clerk of the sale or transfer. If the establishment that is sold or transferred is to continue in the business of precious metal dealer, the new owner must immediately apply for an appropriate license or registration under this chapter. In addition, in the case of licensees, a management agreement, which covers the period between the sale or transfer and the issuance of the new owner's license, shall be executed between the existing licensee and the new owner within 20 business days following the sale or transfer. The management agreement shall vest control of all of the precious metal dealer's business in the existing licensee or a manager responsible to the existing licensee. The agreement shall be approved by the Chief of Police.
C. 
A management agreement shall be required of any licensed precious metal dealer whose business is being managed or operated by a person other than the licensee or an employee of the licensee. No person other than the licensee or an employee of the licensee shall be permitted to manage or operate an establishment licensed under this chapter until the City Council has reviewed and approved the management agreement and any amendments thereto.

§ 207-18 Compliance with "Do Not Solicit" list.

Every person licensed under this chapter shall comply with the "Do Not Solicit" list requirements of Code § 202-37.

§ 207-19 Violations and penalties.

Any person, as defined above, who violates any provision of this chapter shall, upon conviction thereof, be subject to one or more of the following: a fine not exceeding $1,250 or imprisonment in the county jail for a term not exceeding 90 days, or a period of community service not exceeding 90 days, within the discretion of the Municipal Judge. A separate offense shall be deemed committed in each day during or on which a violation occurs or continues.