[HISTORY: Adopted by the Township of Howell 11-30-2010 by Ord. No. O-10-26. Amendments noted where applicable.]
The purpose and intent of this chapter is to provide licensing and regulation of individuals dealing in precious metals, gems, secondhand goods and pawnbrokering to protect the residents of the Township of Howell, and those transacting business in the Township of Howell as permitted, in part, by N.J.S.A. 51:6A-1 et seq. Further, the licensing and regulations of these individuals will further assist the Township of Howell Police Department and others in recovering stolen goods. In addition, in regard to precious metals and gems, this chapter shall be complied with in addition to the laws, rules and regulations as contained in N.J.S.A. 51:6A-1 et seq. and N.J.A.C. 13:47C-1.1 et seq.
As used in this chapter, the following term shall have the meaning indicated:
SECONDHAND DEALER
A. 
Except as provided in Subsection B below, any person, partnership, limited-liability company, corporation or other entity who, either wholly or in part, engages in or operates a trade or business of buying and/or selling used goods or equipment in the Township of Howell, such as antiques, precious stones, gold, silver, platinum or other precious metals, jewelry, coins, any tools, television sets, radios, record or stereo sets, electronic devises, musical instruments, sporting goods, automotive equipment, collectibles, game cartridges, firearms, cameras and camera equipment, and video equipment.
B. 
The business of secondhand dealer shall not be deemed to include:
(1) 
Judicial sales or sales by executors or administrators.
(2) 
Occasional or auction sales of household goods sold from private homes.
(3) 
Auctions of real estate.
(4) 
The occasional sale, purchase or exchange of coins or stamps by a person at his permanent residence, or in any municipally owned building by a person who is engaged in the hobby of collecting coins or stamps, and who does not solicit the sale, purchase or exchange of such coins or stamps to or from the general public by billboard, sign, handbill, newspaper, magazine, radio, television or other form of printed or electronic advertising.
No person, partnership, limited-liability company, corporation or other entity shall engage in business as a secondhand dealer without first obtaining a license from the Township Clerk.
A. 
A separate license must be obtained for each separate place of business. The number of licenses issued shall be limited to six. Any preexisting duly licensed and operating second-hand dealer may be grandfathered and may renew his or her license provided he or she provides proof of prior legal licensure without any interruption in operation. In the event a secondhand dealer shall cease to operate, the license is not transferable.
[Amended 5-21-2013 by Ord. No. O-13-12]
B. 
Advertising in any print or electronic media or by sign that any articles or goods referred to in the definition of "secondhand dealer" are being bought in any location within the Township of Howell shall constitute engaging in business as a secondhand dealer for the purposes of this chapter. No person shall place or cause to be placed any advertisement, the license number issued to the individual or entity by the Township of Howell. In any print advertisement and in the electronic media, the license number shall be visually or audibly stated. Failure to indicate the license number shall be a violation of this chapter.
A. 
Upon receipt of an application by the Township Clerk completed pursuant to this chapter, the Police Department shall make an investigation of the prospective purchaser/licensee, pursuant to this chapter, for the purpose of determining the suitability of the applicant for licensing. Each license shall authorize the purchaser/licensee to conduct business only at the location in which is indicated therein. Such investigation shall include but shall not be limited to the following:
(1) 
The experience of the applicant in the business of the purchase and sale of those items as defined in Subsection A of the definition of "Secondhand Dealer,"[1] although nothing in this chapter shall be construed to warrant denial of a license solely on the basis of lack of experience.
[1]
Editor's Note: See § 245-2.
(2) 
The reputation of the applicant for fair dealing in the community, which shall be made among credible sources which shall be disclosed to the applicant in the event of a denial of any license.
(3) 
Criminal record of the applicant. All background checks shall be conducted through MorphoTrak.
(4) 
The type of operation contemplated to be conducted by the applicant, particularly whether the business is to be operated from a fixed location, whether it is to be conducted from a location primarily devoted to the purchase and sale of precious gems and metals and related items and other factors bearing upon whether the licensed business will be of a fixed and permanent nature. This provision, however, shall not be construed to require denial of any license solely on the grounds that the business is not conducted from a fixed location.
B. 
The Police Department shall complete any investigation pursuant to this chapter within 30 days of the submission of the application to the Township Clerk, fully completed by the applicant. If a criminal record check has been requested within the thirty-day period and has not been received by the Police Department within that period, the Chief of Police may, if all other factors are satisfactory, recommend a conditional issuance of the license subject to the finding regarding criminal records.
C. 
The Chief of Police shall, upon completion of the investigation, recommend, grant or deny the requested license to the Township Council. The recommendation of the Chief of Police shall be in writing and in the case of a recommendation of denial, shall state fully and specifically the reasons for said recommendation. If the Township Council accepts the recommendation of the Chief of Police to deny any license, the Township Clerk shall notify the applicant by certified mail within 10 days of such denial and forward to the applicant a statement of the reason or reasons for such denial.
D. 
Grounds for recommending denial of a license by the Chief of Police may include reliable information indicating that the applicant has in the past engaged in fraudulent or deceptive business practices in a business identical to or similar to the business for which the applicant seeks a license pursuant to this chapter. A license may be denied if the investigation conducted by the Police Department reveals conviction of the applicant or any of its principal officers or employees of any crime or disorderly persons offense involving theft or receiving goods, whether such conviction was a principal or accessory before or after the fact, or conspirator.
E. 
Upon receipt of the recommendation of the Chief of Police, the Township Council shall issue or deny the license accordingly (contingent upon the receipt of a bond of $10,000 pursuant to § 245-8. In the event of a denial of the license by the Township Council, the applicant shall be entitled to a hearing before the Township Council, if requested, in writing, within 10 days of receiving the notice of denial, at which time the applicant shall be permitted to introduce such evidence as he/she shall deem proper. The burden of proof in any such hearing shall be on the Police Department. The Township Council shall, within 10 days of the close of the hearing, make known its decision in writing.
[Amended 9-21-2015 by Ord. No. O-15-33]
A. 
A licensee shall require of each person selling used goods or equipment, such as antiques, precious stones, gold, silver, platinum or other precious metals, jewelry, coins, any tools, television sets, radios, record or stereo sets, electronic devices, musical instruments, sporting goods, automotive equipment, collectibles, game cartridges, firearms, cameras and camera equipment, and video equipment, suitable identification setting forth the true name and home address of the seller. Acceptable identification includes a valid driver's license issued by the State of New Jersey or a valid government-issued photo identification. If any other form of identification is presented other than the aforementioned, then one fingerprint (preferably thumb) shall be recorded on the receipt retained by the dealer. This information shall be forwarded to the Howell Township Police Department within 36 hours.
B. 
A purchaser/licensee shall complete and issue to each seller a serially numbered receipt setting forth the following information:
(1) 
A detailed, legible description of the item, including the price at which it is being purchased. In the case of jewelry, the description must include style, length, color, design and stones, if any.
(2) 
Statement in full of any identifying marks, such as initials, names, dates, inscriptions, serial numbers, series numbers or any other information appearing calculated to set apart the particular object said for the others of like kind.
(3) 
If the item is purchased by weight, the troy ounce weight of the item.
(4) 
The name of the clerk or employee of the licensee making the transaction legibly set forth.
(5) 
The name and permanent business address of the purchaser/licensee.
(6) 
The name, address, sex, date of birth and driver's license number or other government-issued ID which shall be verified by proof of identification on a receipt form provided by the Howell Township Police Department.
(7) 
No purchaser/licensee shall purchase items from any person under the age of 18.
(8) 
A photographed recording of the item(s) being purchased by the purchaser/licensee. The photograph should be of digital JPEG format and quality, with the ability to be electronically transferred to a computer and shall include a photograph of the identification presented by the seller, the serially numbered receipt, and a clear image of the purchased item(s). All jewelry will be photographed on a black background. This photo image shall be printed by the purchaser/licensee and stored on location until they are picked up by the Howell Township Police Department.
(9) 
A thumb print will be recorded on the receipt that is retained by the dealer in accordance with and under the conditions as provided in this subsection.
C. 
The information outlined in Subsection B above must additionally be electronically documented through the use of an electronic database software system authorized by the Chief of Police. Installation and training in this software will be made mandatory as of the effective date of this chapter and licensing will be conditional upon compliance with proper use of the system as described herein. These records shall be subject to the inspection of any authorized police officer or any sworn law enforcement officer acting in the performance of his/her duty as set forth in Subsection E below. Through the use of applicably required computer equipment, and using the electronic format approved by the Chief of Police, every dealer shall enter all reportable transactions into the electronic database by the end of the close of business on the same date as the purchase or receipt of property for pawn or consignment. The information entered must contain all pertinent information outlined in Subsection B above.
D. 
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 Subsection B above into the database as soon as possible upon the dealer’s equipment being repaired or replaced, or 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 this chapter and subsequently being subject to the penalties for doing so including revocation of the dealer’s license as described in this chapter.
E. 
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 Police Department to examine any database, book, ledger, or any other record on the premises relating to the reportable transactions of precious metals or other secondhand goods, as well as the articles purchased or received and, where necessary, relinquish custody of those articles as provided in this chapter. Itinerant businesses and transient buyers will be responsible for notifying the Chief of Police of the address where records and articles will be stored.
No person regulated by this chapter shall sell, melt down or otherwise dispose of any merchandise covered by this chapter purchased by such person until after the close of business on the 10th day, after the date of purchase. All items must remain on location.
[Amended 9-21-2015 by Ord. No. O-15-33]
A. 
Each purchaser/licensee shall maintain duplicate copies of all seller receipts and photographs and electronic records as provided in § 245-5 for a period of two years from the date of each purchase by the purchaser/licensee.
B. 
The license shall be posted in a conspicuous place at the location for the sale or sales licensed under this chapter.
C. 
Within 36 hours of any purchase, the purchaser/licensee shall deliver or fax to the Howell Township Police Department the serially numbered receipt(s) listing all items purchased. Said list shall contain a description of each item, any identifying numbers or inscriptions, the time of purchase and the name and address of the seller pursuant to § 245-5.
A. 
In conjunction with the issuance of a license, each purchaser/licensee shall deliver a bond to the Township Clerk executed by the applicant as principal, with a surety company authorized to do business under the laws of the State of New Jersey as surety. The bond, to be approved by the Township Attorney, shall be in the penal sum of $10,000 continued for the due and proper observance of and compliance with the provisions and requirements of all ordinances of the Township of Howell in force or which may be adopted respecting the conduct of this business and conditioned also that the bond shall be and remain for the benefit of any person or persons who shall have received judgment against the purchaser/licensee licensed under this chapter by reason of any damage sustained by any such person as a result of the operations of the purchaser/licensee under this chapter, which damage shall be established by a judgment of a court of proper jurisdiction. Said bond shall contain the following language:
[Amended 11-20-2012 by Ord. No. O-12-23]
"The obligation of this bond shall, in addition to the Township of Howell, be and remain for the benefit of any person who shall obtain a judgment against the obligor as a result of damage sustained in operation pursuant to any license granted under Township Ordinance."
B. 
Said bond shall be kept in force for a minimum period of one year from the date of issuance of the license and must be renewed annually along with the license.
[Amended 11-20-2012 by Ord. No. O-12-23]
A. 
The fee for the initial application and license shall be as set forth in Ch. 139, Fees. Each license shall be valid for a period of one year, January 1 through December 31. Each annual renewal fee shall be as set forth in Ch. 139, Fees.
B. 
Said license and renewal shall be valid for a period of one year. In the event a license is issued after the effective date of January 1, the expiration date shall remain December 31. At the time of renewal, no new application must be filed with the Township Clerk unless any matters set forth in the original application are changed.
A. 
Any individual person, partnership or corporation found in violation of the provisions of this chapter shall be subject to a minimum fine of $500 for the first offense and any offense thereafter shall not be less than $1,000 and shall not exceed $2,000 and imprisonment not to exceed 60 days or both at the discretion of the court.
[Amended 5-21-2013 by Ord. No. O-13-12]
B. 
Each and every day a violation of this chapter exists shall constitute a separate violation.
C. 
Any secondhand dealer operating without a license shall be subject to a fine of $1,000 for a first offense and $2,000 for every offense thereafter.
[Added 5-21-2013 by Ord. No. O-13-12]
[Added 3-27-2012 by Ord. No. O-12-05]
A. 
The Township Council, upon advice and recommendation of the Chief of Police of the Howell Township Police Department, may suspend or revoke any secondhand dealer's license pursuant to N.J.S.A. 40:52-2 for sufficient cause, after notice and hearing; sufficient cause to include but not be limited to:
(1) 
Violation of any provisions of the within chapter or other ordinances of the Township of Howell.
(2) 
Advertising of any kind by a dealer to purchase secondhand goods without being licensed pursuant to the within chapter.
(3) 
Failure of any person to state fully on his or her application for a license an official place of business within the Township of Howell or any material false representation.
(4) 
Conviction of an offense or crime in connection with Chapter 15, Robbery; Chapter 17, Arson, Criminal Mischief and Other Property Destruction; Chapter 18, Burglary and Other Criminal Intrusion; Chapter 20, Theft and Related Offenses; and Chapter 21, Forgery and Fraudulent Practices, of Title 2C, the New Jersey Code of Criminal Justice.
(5) 
Utilization of the business for the disposal of stolen goods.
B. 
The secondhand dealer shall be liable and responsible for any of the acts or omissions of the licensee's agents, clerks or employees.