The purpose of this chapter is to:
A. Implement, within the jurisdiction boundaries of the Township of Ocean, and establish procedures pursuant to the New Jersey Pawnbroking Law, N.J.S.A. 45:22-2 et seq.
B. Establish procedures for the licensing and operation of pawnbrokers and dealers of secondhand goods through the implementation of a standard body of uniform policies and recordkeeping requirements to which each business governed by this chapter shall abide.
C. Facilitate the prevention of fraud, impositions and other abuses upon citizens of the Township of Ocean.
D. Ensure the difficulty of disposing of stolen property and aid in the recovery of stolen property.
E. No person shall use, exercise or carry on the business, trade or occupation of buying scrap gold, old gold, silver, jewelry, home electronics/audio and visual equipment, musical instruments, telephones and telephonic equipment, scales, computers, computer hardware and software, typewriters, word processors, scanners, sporting goods of all kinds, antiques, platinum, all other precious metals, tools of all kinds, televisions, DVRs, GPS, camcorders, car stereos, gift cards, furniture, clothing or other valuable articles, hereinafter referred to as "secondhand goods or articles," or being a secondhand Dealer within the Township of Ocean without having first obtained a license from the Township of Ocean Clerk as hereinafter provided.
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. As used in this chapter, the following terms shall have the meanings indicated:
ACCEPTABLE IDENTIFICATION Acceptable forms of identification include a current valid New Jersey driver's license or identification card, a current valid photo driver's license issued by another US state, a valid United States passport, or other verifiable US government issued identification.
ANTIQUE DEALER Any person, partnership, firm, association or corporation, other than a licensed pawnbroker or licensed secondhand dealer, having a place of business in the Township of Ocean for the purpose of purchasing, trading or dealing in antiques or primitives and who derives 75% of his or her gross sales from the sale of antiques or primitives.
ANTIQUE or ANTIQUES One or more old and valuable art object or item no longer in production that is at least 50 years old. As used in this chapter, the terms "antique" or "antiques" shall also mean "primitives."
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. And as so defined in N.J.S.A. 51:6-1.
BUSINESS ENTITY Any and all forms of business organization operating pursuant to law, including but not limited to entities designated and/or operating as a partnership, limited-liability company, corporation, "S" corporation, association, or firm. For purposes of this chapter, the term "business entity" includes a foreign business or business formed under the laws of another state, which business is authorized by the State of New Jersey Division of Revenue to conduct business within this state and, at all times relevant to this chapter, is in good standing with the New Jersey Division of Revenue. Foreign businesses include all forms of business entity recognized in the foreign jurisdiction, including any form of business entity not otherwise recognized by the laws of the State of New Jersey, such as, without limitation, a limited-liability partnership.
CHIEF OF POLICE The Chief of Police of the Township of Ocean or his designee/representative.
DATABASE A computerized internet capable database with hardware and software compliant to, accessible by, and acceptable to the Chief of Police.
DEALER Any person, partnership, corporation, or other entity, whether permanent or itinerant, who on one or more occasions (through any means) buys or sells or otherwise exchanges or trades secondhand gold, silver, precious metals, gems, or jewelry, and includes anyone advertising 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 Township of Ocean.
GARAGE SALE Includes all sales entitled "garage sale," "lawn sale," "attic sale," "rummage sale," "flea market sale," "auction sale" or "yard sale" or any similar casual sale of used tangible personal property which is advertised by any means whereby the public at large is or can be made aware of the sale.
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.
LICENSEE Any person or business entity granted a license pursuant to this chapter and/or granted a license by the Department of Banking and Insurance in accordance with the Pawn Broking Law.
MINOR Any person under the age of 18 years.
PAWNBROKER Any person, partnership, association or corporation lending money on deposit or pledge of personal property, other than chooses in action, securities, or printed evidence of indebtedness; purchasing personal property on condition of selling it back at a stipulated price; or doing business as furniture storage warehouseman and lending money on goods, wares, or merchandise pledged or deposited as collateral security. For purposes of this chapter, the term "pawnbroker" shall include any secondhand dealer who also operates as a pawnbroker or undertakes any action or conduct which includes the business of a pawnbroker as defined in the Pawnbroker Law.
PAWNBROKING LAW The New Jersey statute and implementing regulations, N.J.S.A. 45:22-1 et seq., and N.J.A.C. 3:16-1.1 et seq., respectively, and any and all amendments thereto, which govern and regulate pawn shop businesses and pawnbrokers operating within the State of New Jersey.
PERSON Any individual which is not a business entity. For purposes of this chapter, the term "person" shall also include an individual operating a business as a sole proprietorship.
PLEDGE An article or articles deposited with a pawnbroker in the course of business.
PLEDGOR A person who delivers the pledge into the possession of a pawnbroker, unless such person discloses that he is or was acting for another, and in such an event "pledgor" means the disclosed principal.
PRECIOUS METALS 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.
PURCHASE Not only the exchange of money for precious metals, but the exchange or trading of any other tangible or intangible property for precious metals.
PURCHASE The exchange of money and the exchange, deposit, pledge, sale, conveyance or trade of any tangible or intangible article.
REPORTABLE TRANSACTION Every transaction conducted by a dealer in which precious metals, or other tangible property, are purchased or exchanged from or with the public.
SECONDHAND DEALER or DEALER IN SECONDHAND GOODS As used in this chapter, any person, partnership, corporation, association, joint venture, trustee, court-appointed representative or agent thereof which operates a business for profit which buys, sells, possesses on consignment for sale or trades jewelry, stamps, coins or any precious metals which may have been previously owned by a consumer or which derives more than 35% of its gross receipts from the sale, consignment for sale, pledge or trade of any goods, wares or merchandise which have previously been owned by a consumer, including but not limited to furniture, appliances, consumer electronic goods, clothing, automobile accessories, books, magazines, athletic cards and memorabilia or precious metals, whether in bulk or manufactured state. The term "secondhand dealer" shall include businesses commonly known as "pawnbrokers," "trading posts," "swap shop operators," "stamp dealers," "coin dealers," "jewelers" and "auction houses" that purchase and resell items from persons other than dealers and suppliers. The fact that any business does any of the following acts shall be prima facie proof that said business is a secondhand dealership:
A. Advertises in any fashion that it buys or sells secondhand or used items. Such advertisements shall include, but are not limited to, media advertisements, telephone listings, and signs, whether on the exterior or interior of the business.
B. Devotes a significant segment or section of the business premises to the purchase or sale of secondhand or used items.
C. Secondhand goods. Goods which have been previously owned, worn or used by a consumer and/or that are not new. For the purposes of this chapter, the term "secondhand goods" shall include "secondhand watches", except where the context clearly indicates to the contrary.
D. Secondhand watches. A watch shall be deemed to be secondhand if:
(1) It as a whole or the case thereof or the movement thereof has been previously sold to or acquired by any person who bought or acquired the same for his use or the use of another, but not for resale; provided, however, that a watch which has been so sold or acquired and is thereafter returned either through an exchange or for credit to the original individual, firm, partnership, association or corporation who sold or passed title to such watch shall not be deemed to be a secondhand watch for the purposes of this chapter if such vendor shall keep a written or printed record setting forth the name of the purchaser thereof, the date of the sale or transfer thereof, and the serial number (if any) on the case and the movement, and any other distinguishing numbers or identification marks, which said record shall be kept for at least five years from the date of such sale or transfer and shall be open for inspection during all business hours by the Ocean County Prosecutor or the Prosecutor's duly appointed representative;
(2) Its case, serial numbers or movement numbers or other distinguishing numbers or identification marks shall be erased, defaced, removed, altered or covered; or
(3) If its movement is more than five years old and has been repaired by any person or persons, including the vendor, notwithstanding that it may have been returned either through an exchange or for credit to said original vendor. Cleaning and oiling a watch movement or recasting the movement in a new case shall not be deemed watch repair for the purposes of this chapter.
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 Township of Ocean within six months. Or as so defined in N.J.S.A. 51:6A-5 and N.J.A.C. 13:47C-1.1.
No person, either as owner, manager, lessee, officer or agent, or in any other business, within the Township of Ocean, shall operate or permit to operate as a pawnbroker/secondhand dealership without first having obtained a license from the Township of Ocean to do so. If an individual is deemed a pawnbroker or business deemed a pawn shop, then a license from the Commissioner of Banking and Insurance is required (N.J.S.A. 45:22-2).
A. Exemptions. The following are exempt from the requirements of this chapter.
(1) Garage sales. As used in this section, a "garage sale" is defined in the above definitions pursuant to Ocean Township Code Ch.
190.
(2) 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.
(3) Sales or purchases which are regulated by the licensing laws of the state, including automobile dealers, used parts dealers and automotive parts recyclers.
(4) Antique dealers. As used in this section, an antique dealer is defined as one who derives 75% of his gross sales each year from the sale of antiques and/or primitives. 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
B. Application. An application for a license required shall be made, in writing, to the Township of Ocean Clerk, which shall minimally set forth the following:
(1) The name of the individual, partnership, corporation or association applying for a license;
(2) The residence, phone number, date of birth, driver's license number, and social security number or federal tax identification number of the applicant or partners or, if a corporation or association, the residence, phone number and driver's license number of the officers and all shareholders owning more than 5% of the outstanding shares of stock;
(3) The location for which the license is requested;
(4) Whether the applicant, its partners, officers or listed shareholders have been convicted of any criminal offense or ordinance violation (other than traffic or parking offenses) in any jurisdiction and, if so, a list of such convictions with date and prosecuting jurisdiction; and
(5) Whether the applicant, its partners, officers or listed shareholders have held a license or had an interest in a license issued by this or any other jurisdiction regulating the purchase or sale of secondhand property revoked for cause and, if so, list the date of revocation and jurisdiction.
(6) In the case of a pawnbroker, the applicant's name, address, fingerprints and written consent for a criminal history record must be forwarded to the Commissioner.
C. Fees.
(1) Any pawnbroker or secondhand dealer shall, before engaging in business within the Township of Ocean, apply for and secure a license to engage in, conduct, and transact such a business, the fee for which license shall be the sum of $200 in addition to the standard business license fee. The license shall be renewed each year. Application for renewal of a license shall be made to the Township Clerk on or before January 31 of each year and shall be submitted to the Township Committee for approval. The annual renewal fee shall be $50. Should the license be denied, the license fee shall be refunded to the applicant.
(2) Following the issuance of a license, the licensee shall secure the acceptable database software system. Any software licensing fee shall be paid by the licensee direct to the software provider and shall not be part of, and is in addition to, the license fee required by the Township of Ocean.
D. Issuance. The Township Clerk shall issue the license requested unless the Township of Ocean Clerk shall find:
(1) The applicant is under the age of 18;
(2) The location requested is not in a permanent structure;
(3) The applicant, its partners, officers or listed shareholders have been convicted of or have pleaded guilty to any offense related to theft, burglary, or purchasing or receiving stolen items under the laws of this state, Township of Ocean or any other jurisdiction within the past 10 years, or have forfeited a bond to appear in court to answer for charges for such offenses during said time;
(4) That the location requested and structure to be used would not comply with all applicable laws, including the Zoning Code of the Township of Ocean.
(5) That the applicant, its partners, officers or listed shareholders have held a license or had an interest in a license issued by the Township of Ocean or any other jurisdiction regulating the purchase or sale of secondhand property which was revoked for cause; or
(6) That the applicant, its partners, officers or listed shareholders have knowingly furnished false or misleading information or withheld relevant information on any application for a license required by this chapter or any investigation into any application.
E. Posting. Every license issued under the provisions of this chapter shall, at all times during the period for which it is effective, be posted in a conspicuous place at or near the principal entrance to the premises for which the license is issued.
F. Revocation. Any license issued for a secondhand dealer may be revoked or suspended for a period not to exceed 30 days by the Mayor and Committee if they shall find after hearing:
(1) That the licensee, its officers, agents or employees have violated any of the provisions of this chapter, the laws of the state or ordinances of the Township of Ocean in the operation of the business; or
(2) That the licensee, its partners, officers or shareholders have been convicted of any offense set forth in this chapter; or
(3) That the licensee, partners, officers or shareholders have knowingly furnished false or misleading information or withheld relevant information on any application for a license required by this chapter or any investigation into any application. The licensee shall be responsible for the acts of its agents, servants and employees in the operation of the business. Prior to holding a hearing concerning the question of whether a license shall be, revoked or suspended, the Mayor shall give at least 10 days written notice to the licensee setting forth the alleged violation. The licensee may present evidence and cross-examine witnesses at such hearing.
G. False or misleading application. In addition to being subject to penalty as hereinafter set forth, any person who obtains a license as herein provided by furnishing the Township of Ocean with a false or misleading application shall, upon the discovery thereof, suffer an immediate revocation of such license and forfeiture of all fees paid.
H. Transfer. No license issued under this chapter may be transferred to any other person, partnership, corporation or association.
I. Change of location. No licensee shall carry on any business required to be licensed under this chapter except at the location designated on the license. Should the licensee wish to change the location, application shall be made to the Township of Ocean Clerk for such change in writing.
Violation of any provision of this chapter shall, upon conviction thereof, be punished by a minimum fine of $100 or a maximum of $1,000, or by imprisonment for a term not exceeding 90 days, or by a period of community service not exceeding 90 days. Each and every violation shall be considered a separate violation. Every day that a violation continues shall be a separate violation. Each violation shall result in an additional ten-day suspension. Any person who is convicted of violating the provisions of this chapter within one year of the date of a previous violation and who was fined for the previous violation may be sentenced by the court to an additional fee as a repeat offender. The additional fine imposed as a repeat offender shall not be less than the minimum or exceed the maximum fine provided herein and same shall be calculated separately from the fine imposed for the violation of this chapter. For a third or subsequent violation under this chapter, the mercantile license of said business may be revoked upon notification by Mayor and Committee.