[HISTORY: Adopted by the Town Board of the
Town of Buchanan by Ord. No. 2007-06 (Ch. 47 of the 1997 Code). Amendments
noted where applicable.]
GENERAL REFERENCES
Direct sellers and solicitors — See Ch. 263.
A.
The Town Board finds that the services offered by
pawnshops provide an opportunity for individuals to readily transfer
stolen property to those businesses. The Board also finds that consumer
protection regulation is warranted in transactions involving these
businesses. The Town Board further finds that pawnshops have outgrown
the Town's current ability to effectively or efficiently identify
criminal activity related to them. The purpose of this chapter is
to prevent pawnshops from being used to facilitate the commission
of crimes and to assure that they comply with basic consumer protection
standards, thereby protecting the public health, safety and general
welfare of the citizens, and pursuant to the authority granted by
§ 134.71, Wis. Stats.
B.
This chapter implements and establishes the required
use of the Automated Pawn System (APS) to help the Police Department
better regulate current and future pawnshops, to decrease and stabilize
costs associated with the regulation of pawnshops, and to increase
identification of criminal activities in pawnshops through the timely
collection and sharing of transaction information.
In this chapter, the following terms shall have
the meanings indicated:
Any item of value.
Every reportable transaction except renewals, redemptions,
voids or extensions of existing pawns or purchases previously reported
and continuously in the pawnbroker's possession.
A corporation, trust or community chest, fund or foundation
organized and operated exclusively for religious, charitable, scientific,
literary or educational purposes, or for the prevention of cruelty
to children or animals, no part of the net earnings of which inures
to the benefit of any private shareholder or individual.
A person with whom a pawnbroker or an agent thereof engages
in a transaction of purchase, sale, receipt or exchange of any secondhand
article.
Any person who engages in the business of lending money on
the deposit or pledge of any article or purchasing any article with
an expressed or implied agreement or understanding to sell it back
at a subsequent time at a stipulated price. To the extent that a pawnbroker's
business includes buying personal property previously used, rented,
leased or selling it on consignment, the provisions of this chapter
shall be applicable. A person is not acting as a pawnbroker when engaging
in any of the following:
Any transaction at an occasional garage or yard
sale, an estate sale, a gun, knife, gem or antique show or a convention.
Any transaction entered into by a person engaged
in the business of junk collector, junk dealer, or scrap processor,
as described in § 70.995(2)(x), Wis. Stats.
Any transaction while operating as a charitable
organization or conducting a sale the proceeds of which are donated
to a charitable organization.
Any transaction as a purchaser of a secondhand
article from a charitable organization if the secondhand article was
a gift to the charitable organization.
Any transaction as a seller of a secondhand
article that the person bought from a charitable organization if the
secondhand article was a gift to the charitable organization.
The Outagamie County Sheriff's Department that serves the
Town of Buchanan under contract for local police services.
Every transaction conducted by a pawnbroker in which an article
or articles are received through a pawn, purchase, consignment or
trade, or in which a pawn is renewed, extended, voided or redeemed,
or for which a unique transaction number or identifier is generated
by their point-of-sale software and is reportable, except:
The bulk purchase or consignment of new or used
articles from a merchant, manufacturer or wholesaler having an established
permanent place of business and the retail sale of said articles,
provided the pawnbroker must maintain a record of such purchase or
consignment that describes each item and must mark each item in a
manner that relates it to that transaction record.
Retail and wholesale sales of articles originally
received by pawn or purchase and for which all applicable hold and/or
redemption periods have expired.
Owned by any person, except a wholesaler, retailer or licensed
secondhand article dealer, immediately before the transaction at hand.
At all times during the term of the license,
the pawnbroker must allow the Police Department to enter the premises
where the licensed business is located, including all off-site storage
facilities, during normal business hours except in an emergency, for
the purpose of inspecting such premises and inspecting the items,
wares, merchandise and records therein to verify compliance with this
chapter or other applicable laws.
No person may operate as a pawnbroker in the
Town unless the person first obtains a pawnbroker license under this
chapter.
Each license issued under this chapter shall
be displayed in a conspicuous place visible to anyone entering a licensed
premises.
[Amended 11-10-2016 by Res. No. 2016-05]
A person wishing to operate as a pawnbroker
shall apply for a license to the Town Administrator. The Clerk shall
furnish application forms that shall require all of the following:
A.
The applicant's name, place and date of birth, residence
address, and residence addresses for the ten-year period prior to
the date of the application.
B.
The name and address of the business and of the owner
of the business premises.
C.
Whether the applicant is a natural person, corporation,
limited liability company, or partnership, and:
(1)
If the applicant is a corporation, the state where
incorporated and the names and addresses of all officers and directors.
(2)
If the applicant is a partnership, the names and addresses
of all partners.
(3)
If the applicant is a limited liability company, the
names and addresses of all members.
(4)
The name of the manager or proprietor of the business.
(5)
Any other information that the Administrator may reasonably
require.
D.
A statement as to whether the applicant, including
an individual, agent, officer, director, member, partner, manager
or proprietor, has been convicted of any crime, statutory violation
punishable by forfeiture, or county or municipal ordinance violation.
If so, the applicant must furnish information as to the time, place
and offense of all such convictions.
[Amended 11-10-2016 by Res. No. 2016-05]
The Police Department shall investigate each applicant and any other person listed in § 415-6C above for a pawnbroker license. This investigation shall include fingerprinting of the applicant and all employees who are directly involved in the receipt of secondhand articles or jewelry from customers. The Department shall furnish the information derived from that investigation, in writing, to the Town Administrator. The investigation shall include each agent, officer, member, partner, manager or proprietor.
A.
The Town Board shall grant the license if all of the
following apply:
(1)
The applicant, including an individual, a partner,
a member of a limited liability company, a manager, a proprietor,
or an officer, director or agent of any corporate applicant, does
not have an arrest or conviction record, subject to §§ 111.321,
111.322 and 111.335, Wis. Stats.
(2)
The applicant provides to the Town Administrator a
bond of $2,500 with not less than two sureties for the observation
of all municipal ordinances or state or federal laws relating to pawnbrokers.
The bond must be in full force and effect at all times during the
term of the license.
[Amended 11-10-2016 by Res. No. 2016-05]
B.
No license issued under this section may be transferred.
C.
Each license is valid from January 1 until the following
December 31.
A.
Identification. No pawnbroker may engage in a transaction
of purchase, receipt or exchange of any secondhand article from a
customer without first securing adequate identification from the customer.
At the time of the transaction, the pawnbroker shall require the customer
to present one of the following types of identification:
B.
C.
Records required. At the time of any reportable transaction
other than renewals, extensions or redemptions, every pawnbroker must
immediately record in English the following information by using ink
or other indelible medium on forms or in a computerized record approved
by the Police Department.
(1)
A complete and accurate description of each item,
including but not limited to any trademark, identification number,
serial number, model number, brand name, or other identifying mark
on such an item.
(2)
The purchase price, amount of money loaned upon or
pledged therefor.
(3)
The maturity date of the transaction and the amount
due, including monthly and annual interest rates and all pawn fees
and charges.
(4)
Date, time and place the item of property was received
by the pawnbroker, and the unique alpha and/or numeric transaction
identifier that distinguishes it from all other transactions in the
pawnbroker's records.
(5)
Full name, current residence address, current residence
telephone number, date of birth, and accurate description of the person
from whom the item of property was received, including sex, height,
weight, race, color of eyes and color of hair.
(6)
The identification number and state of issue from
any of the following forms of identification of the seller:
(7)
The signature of the person identified in the transaction.
(8)
Renewals, extensions and redemptions. The pawnbroker
shall provide the original transaction identifier, the date of the
current transaction, and the type of transaction for renewals, extensions
and redemptions.
(9)
Record retention. Data entries shall be retained for
at least one year from the date of transaction.
(10)
For every secondhand article purchased, received or exchanged by a pawnbroker from a customer off the pawnbroker's premises, or consigned to the pawnbroker for sale on his premises, the pawnbroker shall keep a written inventory. In this inventory, the pawnbroker shall record the name and address of each customer, the date, time and place of the transaction, and a detailed description of the article that is the subject of the transaction. The customer shall sign his or her name on a declaration of ownership of the secondhand article identified in the inventory and shall state that he/she owns the secondhand article. The pawnbroker shall retain an original and a duplicate of each entry and declaration of ownership relating to the purchase, receipt or exchange of any secondhand article for not less than one year after the date of the transaction, except as provided in Subsection E, and shall make duplicates of the inventory and declarations of ownership available to any law enforcement officer for inspection at any reasonable time.
D.
Holding period:
(1)
Except as provided in Subsection D(3), any secondhand article purchased or received by a pawnbroker shall be kept on the premises or other place for safekeeping for not less than 30 days after the date of purchase or receipt, unless the person known by the pawnbroker to be the lawful owner of the secondhand article redeems it.
(2)
During the period set forth in Subsection D(1), the secondhand article shall be held separate from saleable inventory and may not be altered in any manner. The pawnbroker shall permit any law enforcement officer to inspect the secondhand article during this period. Within 24 hours after a request of a law enforcement officer during this period, a pawnbroker shall make available for inspection any secondhand article that is kept off the premises for safekeeping.
E.
Redemption period. Any person pledging, pawning or depositing any item for security must have a minimum of 60 days from the date of that transaction to redeem the item before it may be forfeited and sold. During the sixty-day holding period, items may not be removed from the licensed location. Pawnbrokers are prohibited from redeeming any item to anyone other than the person to whom the receipt was issued, to any person identified in a written and notarized authorization to redeem the property identified in the receipt, or to a person identified in writing by the pledger at the time of the initial transaction and signed by the pledger, or with the approval of the Police Department. Written authorization for release of property to persons other than the original pledger must be maintained along with the original transaction record in accordance with Subsection C(9).
F.
Police Department order to hold property:
(1)
Investigative hold. Whenever a law enforcement officer from any agency notifies a pawnbroker 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 order is canceled, or until an order to confiscate is issued, pursuant to Subsection F(2), whichever comes first.
(2)
Order to confiscate.
(a)
If an item is identified as stolen or evidence
in a criminal case, the Police Department may physically confiscate
and remove it from the shop, pursuant to a written order from the
Police Department.
(b)
When an item is confiscated, the person doing
so shall provide identification upon request of the pawnbroker, and
shall provide the pawnbroker with the name and phone number of the
confiscating officer and the case number related to the confiscation.
(c)
When an order to confiscate is no longer necessary,
the Police Department shall so notify the pawnbroker.
G.
Daily reports to Police Department:
(1)
Pawnbrokers must submit every reportable transaction to the Police Department daily in the following manner. Pawnbrokers must provide to the Police Department all information required in Subsection C and other required information, by transferring it from their computer to the APS via modem. All required records must be transmitted completely and accurately after the close of business each day in accordance with standards and procedures established by the Police Department, using procedures that address security concerns of the pawnbroker and the Police Department. The pawnbroker must display a sign of sufficient size in a conspicuous place on the premises that informs all patrons that all transactions are reported daily to the Department and APS.
(2)
Billable transaction fees. Pawnbrokers will be charged
for each billable transaction reported to the Police Department. These
fees are intended to pay for the cost of participation in the APS.
(3)
If a pawnbroker is unable to successfully transfer
the required reports by modem, the pawnbroker must provide the Police
Department printed copies of all reportable transactions by 12:00
noon the next business day.
(4)
If the problem is determined to be in the pawnbroker's system and is not corrected by the close of the first business day following the failure, the pawnbroker must provide the required reports as detailed in Subsection G(3), and shall be charged a daily reporting failure fee as listed in the Town of Buchanan Fees and Licenses Schedule[1] until the error is corrected, or if the problem is determined to be outside the pawnbroker's system, the pawnbroker must provide the required reports in Subsection G(3) and resubmit all such transactions via modem when the error is corrected.
[Amended 8-17-2010 by Ord. No. 2010-03]
[1]
Editor's Note: The Town of Buchanan Fees and Licenses Schedule
is on file in the office of the Town Administrator.
(5)
Regardless of the cause or origin of the technical
problems that prevented the pawnbroker from uploading the reportable
transactions, upon correction of the problem, the pawnbroker shall
upload every reportable transaction from every business day the problem
has existed.
(6)
The provisions of this section notwithstanding, the
Police Department may, upon presentation of extenuating circumstances,
delay the implementation of the daily reporting penalty.
(7)
This Subsection G shall not apply to businesses that did not have 200 reportable transactions in the past calendar year. However, any such pawnbroker must follow the daily reporting procedure for each reportable transaction by submitting a written transaction form approved by the Police Department to the Department on the business day following the date of the reportable transaction.
H.
Exception for customer return or exchange. Nothing
in this section applies to the return or exchange from a customer
to a pawnbroker of any secondhand article purchased from the pawnbroker.
Every pawnbroker must provide a receipt to the
party identified in every reportable transaction and must maintain
a duplicate of that receipt for three years. The receipt must include
at least the following information:
A.
The name, address and telephone number of the licensed
business.
B.
The date and time the item was received by the pawnbroker.
C.
Whether the item was pawned or sold, or the nature
of the transaction.
D.
An accurate description of each item received, including,
but not limited to, any trademark, identification number, serial number,
model number, brand name, or other identifying mark on such an item.
E.
The signature or unique identifier of the pawnbroker
or employee that conducted the transaction.
F.
The amount advanced or paid.
G.
The monthly and annual interest rates, including all
pawn fees and charges.
H.
The last regular day of business 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 pawned item on that date.
I.
The full name, residence address, residence telephone
number, and date of birth of the pledger or seller.
J.
The identification number and state of issue from
any of the following forms of identification of the seller:
K.
Description of the pledger or seller, including sex,
approximate height and weight, race, color of eyes, and color of hair.
[Amended 8-17-2010 by Ord. No. 2010-03]
L.
The signature of the pledger or seller.
Pawnbrokers must attach a label to every item
at the time it is pawned, purchased or received in inventory from
any reportable transaction. Permanently recorded on this label must
be the number or name that identifies the transaction in the shop's
records, the transaction date, the name of the item and the description
or the model and serial number of the items as reported to the Police
Department, whichever is applicable, and the date the item is out
of pawn or can be sold, if applicable. Labels shall not be reused.
A.
No person under the age of 18 years may pawn or sell or attempt to pawn or sell goods with any pawnbroker, nor may any pawnbroker receive any goods from a person under the age of 18 years, except as provided in § 415-9B.
[Amended 8-17-2010 by Ord. No. 2010-03]
B.
No pawnbroker may receive any goods from a person
of unsound mind or an intoxicated person.
C.
No pawnbroker may receive any goods unless the seller
presents identification in the form of a valid driver's license, a
valid state of Wisconsin identification card, or current valid photo
driver's license or identification card issued by the state of residency
of the person from whom the item was received.
D.
No pawnbroker may receive any item of property that
possesses an altered or obliterated serial number or other identification
number or any item of property that has had its serial number removed.
E.
No person may pawn, pledge, sell, consign, leave or
deposit any article of property not their own, nor shall any person
pawn, pledge, sell, consign, leave or deposit the property of another,
whether with permission or without, nor shall any person pawn, pledge,
sell, consign, leave or deposit any article of property in which another
has a security interest with any pawnbroker.
F.
No person seeking to pawn, pledge, sell, consign,
leave or deposit any article of property with any pawnbroker shall
give a false or fictitious name, nor give a false date of birth, nor
give a false or out-of-date address of residence or telephone number,
nor present a false or altered identification or the identification
of another to any pawnbroker.
A.
The Town Board may deny, suspend or revoke any license
issued by it under this chapter for fraud, misrepresentation or false
statement contained in the application for a license, or for any violation
of this chapter or § 134.71, 943.34, 948.62 or 948.63, Wis.
Stats., or for any other violation of local, state or federal law
substantially related to the businesses licensed under this chapter.
B.
The Town Board may deny, suspend or revoke any license
issued by it under this chapter if the applicant is not a citizen
of the United States or a resident alien or upon whom it is impractical
or impossible to conduct a background or financial investigation due
to the unavailability of information.
B.
A billable transaction fee as contained in the Town
of Buchanan Fees and Licenses Schedule shall be charged for each billable
transaction, and such fees shall be billed to each pawnbroker monthly
and are due and payable within 30 days of the billing date. Failure
to pay within that time period is a violation of this chapter.
[Amended 8-17-2010 by Ord. No. 2010-03]
Any person who is convicted of violating any
of the provisions of this chapter shall forfeit not less than $50
nor more than $2,000, plus the costs of prosecution, and in default
of such payment, shall be imprisoned in the county jail until such
forfeiture and costs are paid, but not exceeding 90 days. Each day
of violation shall constitute a separate offense.
