City of Isanti, MN Secondhand Goods Dealers

The purpose of this chapter of the City Code is to license secondhand goods dealers and temporary secondhand goods dealers, including antique dealers, auction house dealers, internet auction dealers, consignment house dealers, precious metal dealers, and flea market dealers, in order to prevent these businesses from being used as facilities for the commission of crimes and to assure that such businesses comply with basic consumer protection standards, thereby protecting the health, safety, and welfare of the community. The City Council makes the following findings regarding the need to regulate secondhand goods dealers operating within the City:

Use of the services provided by secondhand goods dealers, whether temporary or otherwise, provides an opportunity for the commission of crimes and their concealment because such businesses can receive and transfer stolen property easily and quickly, thus hampering local law enforcement efforts.

Measures to prevent stolen property from being sold to secondhand goods dealers are necessitated by the fact that no other level of government regulates this industry or effectively and efficiently identifies criminal activity related to these businesses.

An automated system of tracking merchandise and secondhand transactions will help City law enforcement officials better regulate current and future secondhand goods dealers, will decrease and stabilize the costs associated with the regulation of this industry, and will increase the identification of criminal activities in the secondhand industry.

Secondhand goods dealers who operate within the City on a temporary basis present unique consumer protection issues, because such businesses often have out-of-state addresses not easily traced by consumers.

§ 258-2 Definitions.

As used in this chapter, the following terms shall have the meanings indicated:

ANTIQUE

Any secondhand goods, the value of which, in whole or substantial part, is derived from their age or their 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.

BILLABLE TRANSACTION

Every transaction conducted by a licensee is required to be reported to the City of Isanti Police Department under § 258-11.

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 dealer.

DEALER

Any person whose regular business includes the purchase of goods, wares, or merchandise for the purpose of selling them at wholesale or retail to any qualified purchaser.

FLEA MARKET

Any group of five or more unrelated persons or businesses selling secondhand goods to the public from a single physical location.

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.

ISSUING AUTHORITY

The City Clerk for the City of Isanti.

ITEM

Any single physical article; however, with respect to a commonly accepted grouping of articles that is purchased as a set and has greater value as a set than the combined value of its components set if sold individually, the term "item" shall refer to the set.

LICENSED PREMISES

The compact and contiguous premises described in the approved license issued by the City's issuing authority.

LICENSEE

The person to whom a license is issued under this chapter, including any agents or employees of the person.

OCCASIONAL SECONDHAND GOODS DEALER

Secondhand goods dealers whose business plan and records clearly demonstrate on an annual and continuing basis to the satisfaction of the issuing authority that the business does not conduct more than 200 reportable transactions per licensing year and who agree to frequent, unannounced inspection and monitoring by the issuing authority and Isanti Police Department.

PAWN TRANSACTION

Any loan on the security of pledged goods on condition that the pledged goods are left with the dealer and may be redeemed or repurchased by the person pledging the goods for a fixed price within a fixed period of time or any purchase of second hand goods by a pawnbroker licensed under Chapter 233 of the Isanti City Code of Ordinances.

PERSON

One or more natural persons; a partnership, including a limited partnership; a corporation, including a foreign, domestic or nonprofit corporation; a trust; a political subdivision of the state; or any other business organization.

PRECIOUS GEMS

Any gem that is valued for its character, rarity, beauty, or quality, including diamonds, rubies, emeralds, sapphires, or pearls, or any other precious gems or stones, whether as a separate item or in combination as a piece of jewelry or other crafted item.

PRECIOUS METAL DEALER

Any person engaging in the business of coin dealer or buying secondhand items containing precious metal or gems, including but not limited to jewelry, watches, eating utensils, candlesticks, and religious and decorative objects. Businesses that sell or receive such items secondhand, but which derive less than 30% of their total annual income, as measured by gross annual sales, from the sale of such items, are exempt. Dealers in these items shall include, without limitation, antique dealers, consignment house dealers, and auction house dealers.

PRECIOUS METAL ITEM

Coin with numismatic value or intrinsic value greater than its denominational value, precious gems, gold, silver, platinum, and sterling silver, whether as separate items or in combination as a piece of jewelry or other crafted item, except items plated with precious metal or metals and the plating equals less than 1% of the item's total weight.

PRECIOUS METALS

Gold, silver, platinum, and sterling silver, whether as a separate item or in combination as a piece of jewelry or other crafted item, except items plated with precious metal or metals and the plating equals less than 1% of the item's total weight.

RECEIVE

To purchase, accept for sale on consignment, broker, or receive in trade for an item of equal or lesser value.

REPORTABLE TRANSACTION

The receipt by a licensee of secondhand goods within the limits of the City of Isanti, or the receipt of secondhand goods by a licensee outside the City limits when those goods are intended for sale, held for sale or offered for sale on the licensed premises, where the secondhand goods are of the type defined in § 258-11 of this Code for which the licensee must make daily reports to police as set forth therein.

SECONDHAND GOODS

Any tangible personal property, previously owned, used, rented or leased by a person other than the dealer offering it for sale, including, without limitation: electronic audio or video equipment; musical instruments; sports equipment; photographic equipment; outboard motors; inboard drives; nautical sonar or radar devices; electric, pneumatic or hydraulic powered construction or mechanical equipment and tools; computers or computer-related equipment; cellular telephones or other communication devices; jewelry; coins; precious metals; artist-signed or artist-contributed original works of art; and other secondhand goods or merchandise.

SECONDHAND GOODS DEALER

Any person whose regular business includes the selling or receiving of secondhand goods, which sales or receipts total more than 30% of the gross sales of said business during any calendar year, including auction house dealers, internet auction dealers, consignment dealers, flea market dealers, and antique dealers, but not including transactions conducted by a pawnbroker licensed under Chapter 233 of the Isanti City Code of Ordinances or used car sales involving vehicles with titles requiring registration with the Minnesota Department of Public Safety under Minn. Stat. Ch. 168 or boats required to be registered with the Department of Natural Resources.

[Amended 7-20-2021 by Ord. No. 763]

TEMPORARY SECONDHAND GOODS DEALER

Any person who engages in the business of secondhand goods dealer and who occupies a place of business or a lot either as a guest, tenant-at-will, or under a lease for a period shorter than six months, unless that person has occupied the place of business for more than six months immediately prior to the occupancy becoming a tenancy-at-will.

UNIQUE IDENTIFIER

A serial number, identification number, model number, owner-applied identifier or engraving, "Operation ID" number or symbol, or other unique marking.

§ 258-3 License or registration required.

No person shall exercise, carry on or engage in the business of a secondhand goods dealer unless currently licensed or registered pursuant to this chapter. Issuance of a license or registration pursuant to this chapter shall not relieve the dealer from obtaining any other licenses required to conduct other businesses at the same or any other location. No occasional secondhand goods dealer may conduct more than 200 reportable transactions during any licensing year without upgrading the license to a secondhand goods dealer's license and paying the fee.

Pawnbrokers licensed under Chapter 233 of the Isanti City Code of Ordinances do not have to obtain a separate secondhand goods dealer's license. However, secondhand goods transactions conducted by a licensed pawnbroker must be in conformity with all of the requirements set forth in this chapter as though the pawnbroker held a separate secondhand goods dealer's license. This includes, without limitation, the recordkeeping, reporting and operational requirements and restrictions set forth in this chapter. Violations of this chapter will result in possible suspension or revocation of the pawnbroker's license.

The following persons shall not be subject to the licensing requirements and regulations of this chapter:

(1)

Persons who are residents, tax-exempt, nonprofit or public charitable organizations, tax-exempt political organizations or tax-exempt, nonprofit civic organizations conducting the occasional sale of secondhand goods at events commonly known as "garage sales," "yard sales," "moving sales," "fund-raiser sales," or "estate sales" where all of the following are present:

(a)

The sale is held on real property located within the City that is occupied as a dwelling by one of the sellers or owned, rented or leased by the charitable, political or civic organization;

(b)

The person conducting the sale owns the items offered for sale and receives all the proceeds therefrom;

(c)

The sales event does not exceed a period of 72 hours, with no more than four sales events being held within a twelve-month period;

(d)

The sales event does not include the sale of firearms.

(2)

Secondhand goods dealers who register with the issuing authority and whose business plan and records clearly demonstrate on an annual and continuing basis, to the satisfaction of the issuing authority, that they have not paid an aggregate amount to an individual seller for all of the items received from that seller at the same time or within six months in one or multiple transactions of $200 or more and that they conduct transactions exclusively involving the sale or receipt of any combination of the following:

(a)

Nonantique secondhand books, magazines, postcards, stamps, or philatelic material;

(b)

Secondhand furniture, excluding: antiques, audio, video or other electronic devices, or architectural elements, lighting fixtures or lamps where the dealer intends to offer the item for sale or broker the item for $200 or more;

(c)

Secondhand cookware, glassware, or eating utensils not containing precious metals;

(d)

Secondhand clothing and shoes, excluding leather or fur outerwear and apparel generally associated with the playing of or as equipment for a particular sport or recreational activity;

(e)

Secondhand infants', toddlers' or children's clothing, appliances, furniture, or safety devices.

(3)

(a)

Sales 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 secondhand goods dealer must maintain a record of all such transactions which includes, at a minimum, a written declaration of ownership setting forth:

[1]

The seller's full corporate name, corporate address, telephone number, federal employee identification number (EIN) or federal tax identification number, full name of the chief executive officer of the corporation, 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, but not limited to, any trademark, identification number, serial number, model number, brand name, or other identifying mark on the item;

[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 items if accepted in trade; and

[5]

A signed statement by the seller that the seller is the true owner of the property, or proof of his/her authorization from the true owner to dispose of the items, and that the property is free from all other claims or liens.

(b)

Transactions between dealers if both dealers are licensed under Minn. Stat. § 325F.733 or this chapter of the City Code of Ordinances, or if the seller's business is located outside of the state and the item is shipped from outside the state to a dealer licensed under Minn. Stat. § 325F.733 or this chapter of the City Code of Ordinances.

(c)

Secondhand goods that have been donated without compensation.

(4)

Transactions conducted by Sheriffs or other public officers who are acting according to law in their official capacity.

(5)

Transactions regulated by Minn. Stat. Ch. 80A or the Federal Commodity Futures Commission Act.

(6)

Secondhand goods dealers who are able to demonstrate to the issuing authority, upon request, that they qualify as a recognized, tax-exempt, nonprofit organization pursuant to Section 501(c) of the Internal Revenue Code or tax-exempt political organization pursuant to Section 527 of the Internal Revenue Code and regulated pursuant to Minn. Stat. § 10A.14, who exclusively conduct transactions involving the sale or receipt of secondhand goods that have been donated without compensation.

§ 258-4 License or registration application.

Secondhand goods dealer. An application for a license or registration shall be made on a form supplied by the issuing authority and shall contain the following information:

(1)

Individual applicants. If the applicant is a natural person:

(a)

The name, residential street address, and telephone number of the applicant.

(b)

Whether the applicant has ever used or has been known by a name other than the name set forth on the application and, if so, the name or names used and information concerning dates and places associated with each such name.

(c)

The name of the business if it is to be conducted under a designation or name other than the name of the applicant and a copy of the certificate of commercial assumed name as required by Minn. Stat. § 333.01.

(d)

The home and business street addresses of the applicant for the preceding five years.

(e)

The type, name and location of every business or occupation in which the applicant has been engaged during the preceding five years and the names and addresses of the applicant's employers and partners, if any, for the preceding five years.

(f)

Whether the applicant has ever been convicted of a felony, crime or violation of any ordinance other than a traffic ordinance, including cases where there has been a stay of adjudication or imposition of sentence. As to each such conviction, the applicant shall furnish the time and place where the offense constituting the conviction occurred and describe the offense for which the applicant was convicted.

(g)

The place and date of birth and the state driver's license number or state identification number for the applicant.

(2)

Partnership applicants. If the applicant is a partnership:

(a)

The names and addresses of all general and limited partners and all information concerning each general partner as required in Subsection A(1) of this section.

(b)

The names of the managing partners and the interest of each partner in the secondhand goods or antique business.

(c)

A true copy of the partnership agreement and a copy of the certificate of commercial assumed name as required by Minn. Stat. § 333.01.

(3)

Corporate applicants. If the applicant is a corporation or other organization:

(a)

The name of the corporation or business form and state in which the business is incorporated.

(b)

A true copy of the certificate of incorporation. If the applicant is a foreign corporation, a certificate of authority as required by Minn. Stat. § 303.06 shall be attached.

(c)

The name of the managers, proprietors or other agents in charge of the business and all information concerning each as required in Subsection A(1)(a), (b), (f) and (g) of this section.

(d)

A list of all persons who control or own interest in excess of 5% in such organization or business form or who are officers of the corporation or business form and all information concerning each as required in Subsection A(1)(a), (b), (f) and (g) of this section.

(4)

All applicants. For all applicants:

(a)

The location of the business premises.

(b)

The location at which the applicant's business records are maintained.

(c)

A legal description of the business premises to be licensed and registered.

(d)

Whether all real estate and personal property taxes that are due and payable for the premises to be licensed or registered have been paid, and if not paid, the years and amounts that are unpaid.

(e)

If the applicant does not own the business premises, a true and complete copy of the current, executed lease.

(f)

Whether the applicant holds a current pawnbroker or secondhand goods dealer license from any government unit, identifying the location of all other licensed premises and whether the applicant is licensed under Minn. Stat. § 471.924 or 325F.731-744.

(g)

Whether the applicant or any individual, partner or corporate officer having an ownership interest in the business has previously had a pawnbroker or secondhand goods dealer license denied or revoked by any governmental unit, identifying that governmental unit.

(h)

Whenever the application is for a premises either planned or under construction or undergoing substantial alteration, the application shall be accompanied by a set of preliminary plans showing the design of the proposed premises to be licensed or registered. If the plans or design are on file with the City of Isanti, no additional set of plans need be submitted to the issuing authority.

(i)

The applicant's hours of operation, on-site management and parking facilities.

(j)

An executed data privacy advisory and consent form authorizing the release of criminal history information from each of individuals, partners and corporate officers having an interest in the business.

(k)

Such other information as the City Council or issuing authority may require.

(l)

Proof of workers' compensation insurance, as required by Minn. Stat. § 176.182, and the applicant's social security number or individual taxpayer identification number and Minnesota business tax identification number, as required by Minn. Stat. § 270C.72.

[Amended 7-20-2021 by Ord. No. 763]

Temporary secondhand goods dealer. An application for a temporary secondhand goods dealer license under this chapter shall be submitted to the issuing authority at least 21 working days before the purchasing is to commence with the City. One license shall be obtained by the entity organizing the event and whose name appears on the title to or lease agreement for the premises on which the event will occur, so long as each separate vendor is specifically identified as set forth in this chapter and meets the eligibility requirements set forth in §§ 258-8 through 258-12.

(1)

For individual applicants:

(a)

The current full name, residential street address, temporary local street address, current permanent business address, and residential and business telephone numbers of the applicant.

(b)

Any other names the applicant has ever used or been known by and the dates and places associated with each such name.

(c)

A brief description of the proposed purchasing event, its location, and the type of merchandise to be purchased.

(d)

The dates and hours of the day during which the purchasing event will be conducted.

(e)

The full name of the business on who behalf the purchases are made, if it is to be conducted under a designation, name or style other than the name of the applicant, and a copy of the certificate of assumed name required by Minn. Stat. § 333.01, together with credentials establishing the applicant's relationship to the firm or business.

(f)

Whether or not the applicant has been convicted of any crime other than petty traffic violations, the nature, time and location of the offense, and the punishment or penalty imposed.

(g)

The last cities or other localities, not exceeding five, where the applicant conducted purchasing immediately preceding the date of the application and where within those areas the activity took place.

(h)

The date and place of birth and a state driver's license or state identification card number of the applicant.

(i)

Whether or not the applicant has ever personally, or as a partner or corporate officer of a corporation or other business association, had a registration or license similar to this chapter's license denied, suspended or revoked by any government body within five years before the application date, identifying that government unit.

(j)

The type, name and location of every business or occupation of the applicant within the preceding five years and the names and addresses of the applicant's employers, partners or business associates within the preceding five years.

(k)

Whether or not the applicant has ever personally, or as a partner or corporate officer of a corporation or other business association, been denied a professional license or membership in a professional business association, had a professional license revoked or been expelled from a professional business association.

(2)

For applicants that are partnerships, corporations or associations:

(a)

The name of the corporation or business form and, if incorporated, the state of incorporation, including the name of each partner or officer of the organization and all information concerning each partner or officer required in Subsection A of this section.

(b)

The business address of the applicant, including a temporary local address, and the home address of each partner or officer.

(c)

A brief description of the proposed purchasing event, its location, and the type of merchandise to be purchased.

(d)

The dates and hours of the day during which the purchasing event will be conducted.

(e)

The last cities or other localities, not exceeding five, where the applicant conducted purchasing immediately preceding the date.

(f)

A true copy of the partnership agreement and, if the partnership is required to file a certificate as to a trade name pursuant to Minn. Stat. § 333.01, a copy of that certificate.

(g)

The date of birth and a state driver's license or state identification card number of the corporate officer, general partner, or person affiliated with the association who is primarily responsible for the purchasing event.

(3)

For all applicants:

(a)

Whether the applicant or the firm or business employing the applicant 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 the dates and outcomes of such an investigation.

(b)

Proof of workers' compensation insurance, as required by Minn. Stat. § 176.182, and the applicant's Minnesota business tax identification number, as required by Minn. Stat. § 270.72.

(c)

An executed data privacy advisory and consent form authorizing the release of criminal history information from each of the individuals, partners and corporate officers having an interest in the business.

(d)

Website and electronic mail addresses for the business and each of the individuals, partners and corporate officers having an interest in the business.

§ 258-5 Fees.

Application fee.

(1)

The license or registration application fee shall be as set forth in Chapter 160, Fees, of the Code of the City of Isanti. The fee paid shall be refunded in accordance with the process as outlined within the Isanti City Code of Ordinances, except that the fee shall be refunded on a monthly basis.

[Amended at time of adoption of Code (see Ch. 1, General Provisions, Art. II)]

(2)

The application fee shall be paid in full before the application for a new license, registration or renewal shall be accepted. Upon rejection of any application for a license or upon withdrawal of any application before the City Council approval, the application fee shall be refunded in full to the applicant except where rejection is for a willful misstatement in the application.

(3)

When the license or registration is for premises where the building is not ready for occupancy, the time fixed for computation of the fee for the initial license or registration period shall be 90 days after approval of the license by the City Council or approval of the registration by the issuing authority or upon the date the building is ready for occupancy, whichever occurs first.

(4)

When a new application is submitted as a result of incorporation by any existing licensee or registrant and the ownership, control and interest in the license or registration are unchanged, no additional fee shall be required.

Investigation fee. An applicant for any license under this chapter shall deposit with the issuing authority at the time an original application is submitted for the amount as set forth in Chapter 160, Fees, to cover the costs involved in verifying the license application and to cover the expense of any investigation needed to assure compliance with this chapter. If the investigation is conducted outside the State of Minnesota, the issuing authority may recover the actual costs of investigation, not to exceed $1,500. At any time that an additional investigation is necessary because of a change in the persons in charge of the business or corporate structure, the licensee shall pay an additional nonrefundable investigation fee in an amount as established by the City Council.

[Amended at time of adoption of Code (see Ch. 1, General Provisions, Art. II)]

Transaction fee. In addition to the annual application fee, a transaction fee, based upon the actual number of billable transactions conducted by the licensee, shall be billed monthly to the licensee and is due and payable within 25 days after the billed date. The transaction fee shall reflect the cost of processing reportable transactions and other regulatory expenses related to processing reportable transaction information, including the cost of participating in the automated recordkeeping system. The amount of the transaction fee shall be dependent on the accuracy of the report and the type of medium (modem or other approved electronic method or manual) by which the daily reports are submitted to the Isanti Police Department pursuant to this chapter.

Late transaction fees. A licensee failing to make a transaction fee payment within 25 days after the billed date shall be required to pay a penalty of 5% of the amount remaining unpaid. If payment of the amount due plus the 5% penalty is not paid within 30 days after the due date, an additional 10% penalty shall be imposed upon the amount due and the 5% penalty. If the delinquency continues beyond 60 days, a license revocation notice may be sent and a revocation hearing may be commenced.[1]

[1]

Editor's Note: Former Subsection E, Electronic reporting problems, which immediately followed this subsection, was repealed 7-20-2021 by Ord. No. 763; and former Subsection F was redesignated Subsection E. See now § 258-11B.

Erroneously reported transaction penalty. Daily reports required to be submitted to the Isanti Police Department pursuant to § 258-11 must accurately report the information required by § 258-10B. If a licensee submits a daily report by modem or other approved electronic method containing any omission or inaccuracy in the required information, then each transaction containing an omission or inaccuracy will be classified as erroneous. Licensees who submit five or more erroneous transactions within a billable month shall be charged at the rate of a manually reported transaction for each such erroneous transaction during that billable month.

§ 258-6 Execution and verification of application.

All applications for a license or registration under this chapter must be signed and sworn to under oath. If the application is that of a natural person, it shall be signed and sworn to by such person; if that of a corporation, by an officer thereof; if that of a partnership, by one of the general partners; and if that of an unincorporated association, by the manager or managing officer thereof. All submitted applications shall be referred to the issuing authority for verification and investigation of the facts set forth therein. The issuing authority shall make the determination as to whether or not the applicant qualifies for a certificate of registration in lieu of licensing. Where it is determined that the applicant does not qualify for registration in lieu of licensing, upon the applicant's payment of the difference between the registration fee and appropriate license fee, as well as the investigation fee, the application will be processed as a license application.

§ 258-7 License application consideration; appeals.

After the completion of the application verification and investigation by the issuing authority, the issuing authority shall accept or deny the license application in accordance with this chapter. If the application is denied, the issuing authority shall notify the applicant of the determination in writing. The notice shall be mailed by certified and regular mail to the applicant at the address provided on the application form, and it shall inform the applicant of the applicant's right, within 20 calendar days of receipt of the notice by the applicant, to request an appeal of the issuing authority's determination to the City Council. If an appeal to the City Council is timely received by the issuing authority, the hearing before the City Council shall take place within 20 calendar days of the receipt of the appeal by the issuing authority. Renewal applications shall be governed by § 258-13 of this chapter. If an application is granted for a location where a building is under construction or not ready for occupancy, the license shall not be delivered to the licensee until a certificate of occupancy has been issued for the licensed premises.

§ 258-8 Persons and locations ineligible for license or registration.

Individual ineligibility. No license or registration in lieu of licensing under this chapter shall be issued to an applicant who is a natural person if such applicant:

(1)

Is not 18 years of age or older on the date the application is submitted to the issuing authority;

(2)

Has been convicted of any crime directly related to the occupation licensed or registered as prescribed by Minn. Stat. § 364.03, Subd. 2, and has not shown competent evidence of sufficient rehabilitation and present fitness to perform the duties of a secondhand goods dealer as prescribed in Minn. Stat. § 364.03, Subd. 3;

(3)

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;

(4)

Is not of good moral character or repute;

(5)

Holds an intoxicating liquor license under Chapter 76 of the Isanti City Code of Ordinances;

(6)

Has knowingly falsified or misrepresented information on the application;

(7)

Is not the real party in interest in the business being licensed or registered;

(8)

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 as a result of a violation of law within five years of the date the license or registration application is submitted to the issuing authority; or

(9)

Owes taxes or assessments to the state, county, school district, or City that are due or delinquent.

Partnership ineligibility. No license or registration in lieu of licensing under this chapter shall be issued to an applicant that is a partnership if such applicant has any general partner or managing partner who cannot meet the eligibility requirements of § 258-8A or if the partnership:

(1)

Has had a pawnbroker or secondhand goods dealer's license denied or revoked as a result of a violation of law within five years of the date the license or registration application is submitted to the issuing authority;

(2)

Owes taxes or assessments to the state, county, school district, or City that are due and delinquent; or

(3)

Corporate and association ineligibility. No license or registration in lieu of licensing under this chapter 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 who cannot meet the eligibility requirements of § 258-8A or if the corporation:

(1)

(2)

Owes taxes or assessments to the state, county, school district, or City that are due and delinquent; or

(3)

Locations ineligible. The following locations shall be ineligible for a license or registration under this chapter:

(1)

Claims due. No license or registration shall be granted or renewed for operation on any property on which taxes, assessments, or other financial claims of the state, county, school district, or City are due, delinquent, or unpaid. In the event a suit has been commenced under Minn. Stat. §§ 278.01 to 278.13, questioning the amount or validity of taxes, the City Council may, upon application, waive strict compliance with this provision; no waiver may be granted, however, for taxes or any portion thereof which remain unpaid for a period exceeding one year after becoming due.

(2)

Improper zoning. No license or registration shall be granted if the property is not properly zoned for this retail business under Ordinance No. 445, Zoning Ordinance, unless the business is a legal nonconforming use.

§ 258-9 Restrictions regarding license or registration transfer.

Each license or registration under this chapter shall be issued to the named applicant only and shall not be transferable to any other person. No licensee or registrant shall loan, sell, give, or assign a license or registration to another person. A license or registration issued under this chapter is for the person and premises named on the approved application, only at the permanent place of business designated on the application. However, upon written request, the issuing authority may approve an off-site, locked and secured storage facility. No transfer of a license or registration shall be permitted from place-to-place or from person-to-person, except in the case in which an existing licensee or registrant is merely changing a business or corporate name or changing its corporate structure so long as there is no change in the ownership or control of the business or function. All licenses or certificates of registration issued under this chapter must be posted in a conspicuous place on the premises for which they are issued.

A licensee or registrant under this chapter must immediately notify the issuing authority of the following:

(1)

A change in the corporation or organization officers listed on 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.

When an establishment licensed or registered under this chapter is sold or transferred, the licensee or registrant shall immediately notify the issuing authority of the sale or transfer. If the establishment that is sold or transferred is to continue in the business of secondhand goods 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 days following the sale or transfer. The management agreement shall vest control of all of the secondhand goods dealer's business in the existing licensee or a manager responsible to the existing license.

A management agreement shall be required of any licensed secondhand goods 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 issuing authority has reviewed and approved the management agreement and any amendments thereto.

§ 258-10 Recordkeeping requirements.

Exempt transactions. The following items, when received by a licensee, are exempt from the recording and reporting requirements of the chapter, regardless of the purchase price paid by the licensee, asking price if consigned or brokered, or value attributed to them if accepted in trade:

(1)

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:

(a)

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.

(b)

An accurate description of each item of property, that must identify the item in a manner that relates to the transaction record, including, but not limited to, any trademark, identification number, serial number, model number, brand name or other identifying mark on the item.

(c)

A description of the nature of the transaction, such as trade, consignment, or sale.

(d)

The purchase price, asking price if consigned or value attributed to the item if accepted in trade.

(e)

A signed statement by the seller attesting that the seller is the true owner of the property, or proof of his/her authorization from the true owner to dispose of the items, and that the property is free from all other claims or liens.

(2)

Retail and wholesale sales of merchandise by the licensee originally received through a reportable transaction and for which all applicable hold periods have expired.

Records.

(1)

At the time of receipt of an item of any secondhand goods within the limits of the City of Isanti or the receipt of any secondhand goods by a licensee outside the City limits when those goods are intended for sale, held for sale or offered for sale on the licensed premises, the licensee shall immediately record, using the English language, in an indelible ink or other indelible medium, in a book or journal, which has page numbers that are preprinted, or in a computerized record approved by the issuing authority, the following information:

(a)

An accurate description of the item of property, including, but not limited to, its type, composition, size, color, and any trademark, identification number, serial number, model number, brand name or other identifying mark on such item;

(b)

The nature of the transaction, such as trade, consignment, or sale;

(c)

The purchase price, asking price if consigned, or value attributed to the item if accepted in trade, for each item received;

(d)

The date and time the item of property was received by the licensee;

(e)

The full name, address, telephone number, driver's license or state identification card number, and date of birth of the person from whom the item of property was received or, in the case of internet auctions, the user account name or screen name of the seller and the auction's internet address; and

(f)

The full name of the employee conducting the transaction.

(2)

Each item received must be separately described and recorded notwithstanding that the items may have been received from the same customer at the same time. A licensee must, upon request, immediately provide to the appropriate law enforcement agency, license section or their designees all records required by this chapter. Data entries must be retained for at least four years from the date of the transaction.

Customer receipt. The licensee or registrant must provide a receipt to every person from whom an item of property is received, with the exception of items purchased via an internet auction, and shall maintain a duplicate of that receipt for four years. The receipt shall include sufficient information to enable the Police Department to identify the transaction, and every item related to it, in the licensee's records.

§ 258-11 Daily reports to police required.

Effective no later than 60 days after the Isanti Police Department provides licensees with the current version of the automated pawn system interchange file specification, licensees must submit every reportable transaction to the Isanti Police Department daily in the following manner: Licensees must provide to the Isanti Police Department all reportable transaction information by transferring it from their computer to the automated pawn system via modem using the current version of the automated pawn system interchange file specification. 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 issuing authority. Any transaction that does not meet the automated pawn system interchange file specification must be corrected and resubmitted the next business day. The licensee must display a sign of sufficient size, in a conspicuous place in the premises, which informs patrons that all transactions are reported to the Isanti Police Department daily.

Billable transaction fee. Licensees will be charged for each billable transaction reported to the Isanti Police Department.

(1)

If a licensee is unable to successfully transfer the required reports by modem, the licensee must provide the Isanti Police Department, upon request, printed copies of all reportable transactions along with the videotape(s) for that date, by 12:00 noon the next business day.

(a)

If the problem is determined to be in the licensee's system and is not corrected by the close of the first business day following the failure, the licensee must continue to provide the required reports as detailed in Subsection B(1) and must be charged a reporting failure penalty of $50 daily, until the error is corrected; or

(b)

If the problem is determined to be outside the licensee's system, the licensee must continue to provide the required reports as specified in the Subsection B(1) and resubmit all such transactions via modem when the error is corrected.

(2)

Regardless of the cause or origin of the technical problems that prevented the licensee from uploading its reportable transactions, upon correction of the problem, the licensee shall upload every reportable transaction from every business day the problem had existed.

(3)

As referred to in Subsection B(1) notwithstanding, the Isanti Police Department may, upon presentation of extenuating circumstances, delay the implementation of the daily reporting penalty.

§ 258-12 Operating restrictions.

Automatic holding period. Any item purchased or accepted in trade by a licensee must not be sold or otherwise transferred for 30 days from the date of the transaction. Exceptions shall be given to media items, to include VHS tapes, CDs, DVDs, Blue-Ray discs, HD-DVD, audio cassettes, books, video games, and other items deemed similar. Such media items must not be sold or otherwise transferred for 14 days from the date of transaction. An individual may redeem an item 72 hours after the item was received on deposit, excluding Sundays and legal holidays.

Police orders to hold or confiscate.

(1)

Investigative hold. 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 canceled, or until an order to hold or confiscate is issued, whichever occurs first.

(2)

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 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.

(3)

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 Chief's designee must provide, upon request, his/her 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.

Suspicious property. A licensee or registrant must report to the Isanti 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.

Police inspections. The licensee or registrant must allow the Chief of Police or the Chief's designee to enter the premises where the licensed or registered business is located or business records are maintained, including off-site storage facilities, during normal business hours, and/or beyond normal business hours where the Chief of Police or the Chief's designee determines an emergency situation exists, for the purpose of locating items suspected or alleged to have been stolen or otherwise improperly disposed of and inspecting such premises and the items, wares, merchandise and records therein to verify compliance with this chapter or other applicable laws.

Label required. The licensee must affix a label to every item for which a report to the Isanti Police Department is required under § 258-11 at the time it is received in inventory. Permanently recorded on this label must be the number or name that identifies the transaction in the licensee's records, the name of the item, and the date the item can be sold. Labels must not be reused.

Prohibited transactions. With the exception of purchases made via an internet auction, no licensee, clerk, agent or employee thereof shall receive any secondhand goods within the limits of the City of Isanti or outside of City limits when those goods may be intended for sale, held for sale or offered for sale on the licensed premises under the following circumstances:

(1)

By mail or third-party delivery (not including items purchased via an internet auction), unless accompanied by a fully executed declaration of ownership which includes:

(a)

For individual sellers: the seller's full name, address, telephone number, and legible photocopy of the seller's currently valid driver's license or state identification card;

(b)

For corporate sellers: the full corporate name of the seller, corporate address, telephone and facsimile numbers, federal employer identification number or federal tax identification number, the full name of the chief executive officer of the corporation and a description of the seller's business;

(c)

A description of how the seller acquired the property and the approximate date it was acquired;

(d)

A description of the property being sold by trademark, identification number, serial number, model number, brand name or other identifying mark on the items;

(e)

A description of the nature of the intended sales transaction, such as trade, consignment, or sale;

(f)

The purchase price, asking price if consigned, or value attributed to the items if accepted in trade;

(g)

A signed statement by the seller attesting that he or she is the true owner of the property or is legally authorized by the true owner, who is identified by full name, address, telephone number, and date of birth, to dispose of the items and the property is free from all other claims and liens; and

(h)

A signed statement by the seller that he or she is over the age of 18 years and otherwise competent to conduct the transaction.

(2)

Unless the seller signs a statement attesting to be the true owner of the property or is legally authorized to dispose of the property by the true owner, who is identified by full name, address, telephone number and date of birth, and that the property is free of all claims and liens.

(3)

From any person who fails to present identification in the form of a current valid Minnesota driver's license, a current valid Minnesota identification card, or a current valid photo driver's license or photo identification card issued by another state or a province of Canada.

(4)

From any person under the age of 18 years.

(5)

From any person who is obviously intoxicated, chemically impaired or incompetent.

(6)

Whenever the item of property contains an altered or obliterated serial number, "Operation Identification" number or is otherwise altered so as to remove, alter or obliterate a unique identifier of the property.

Hours of operation. No licensee or registrant shall receive secondhand goods, including antiques, or keep the business open for business transactions on any day of the week before 6:00 a.m. or after 10:00 p.m.

Maintenance order. A licensee or registrant under this chapter shall be responsible for the conduct of the business being operated in conformity with all applicable laws and shall maintain conditions of order.

Gambling. No licensee or registrant under this chapter may keep, possess, or operate, or permit the keeping, possession, or operation, on the licensed premises of dice, slot machines, roulette wheels, punchboards, blackjack tables, or pinball machines which return coins or slugs, chips, or tokens of any kind, which are redeemable in merchandise or cash. No gambling equipment authorized under state law may be kept or operated and no raffles may be conducted on the licensed premises or in adjoining rooms.

Display and storage of firearms. As a condition of the licensure, the dealer shall not display, store, or keep on the licensed property any firearms.

§ 258-13 Renewal applications.

Deadline for renewal application. All licenses or certificates of registration issued under this chapter shall be effective for one year from the date of approval. An application for the renewal of an existing license or registration shall be made prior to the expiration date of the license or registration and shall be made in such form as the issuing authority requires. If, in the judgment of the City Council, good and sufficient cause is shown by an applicant for the applicant's failure to submit a renewal application before the expiration of the existing license, the City Council may, if the other provisions of this chapter are complied with, grant the renewal application.

Consideration of renewal application. Within a reasonable period after the completion of the renewal verification process by the issuing authority, the issuing authority shall accept or deny the renewal application in accordance with this chapter. If the renewal application is denied, the issuing authority shall notify the applicant of the determination in writing. The notice shall be mailed by certified and regular mail to the applicant at the address provided in the application and it shall inform the applicant of the applicant's right, within 20 days after receipt of the notice by the applicant, to request an appeal of the issuing authority's determination to the City Council. If an appeal to the City Council is timely received by the issuing authority, the hearing before the City Council shall take place within a reasonable period of receipt of the appeal by the issuing authority.

§ 258-14 Sanctions for license or registration violations.

Suspension or revocation. The City Council may suspend or revoke a license or registration issued pursuant to this chapter for any of the following reasons:

(1)

Fraud, misrepresentation, or false statement contained in an application or renewal application.

(2)

Fraud, misrepresentation, or false statement made in the course of carrying on the licensed or registered occupation or business.

(3)

Any violation of this chapter or state law.

(4)

A licensee's or registrant's criminal conviction that is directly related to the occupation or business licensed or registered as defined by Minn. Stat. § 364.03, Subd. 2, provided that the licensee or registrant cannot show competent evidence of sufficient rehabilitation and present fitness to perform the duties of the licensed or registered occupation or business as defined by Minn. Stat. § 364.03, Subd. 3.

(5)

Conducting the licensed or registered business or occupation in an unlawful manner or in such a manner as to constitute a breach of the peace or to constitute a menace to the health, safety, or general welfare of the community.

Notice and hearing. A revocation or suspension of the license or registration by the City Council shall be preceded by written notice to the licensee and a hearing. The notice shall give at least eight days' notice as to the time and place of the hearing and shall state the nature of the charges against the licensee or registrant. The notice shall be mailed by certified and regular mail to the licensee at the most-recent address listed on the license or registration application.

§ 258-15 Denial of license or registration.

[Amended 7-20-2021 by Ord. No. 763]

Any license or registration under this chapter may be denied for one or more of the following reasons:

The proposed use does not comply with the Isanti Zoning Ordinance.

The proposed use does not comply with any health, building, building maintenance or other provision of the Isanti City Code of Ordinances or state law.

The applicant has failed to comply with one or more provisions of this chapter.

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.

Fraud, misrepresentation, or bribery in securing or renewing a license.

Fraud, misrepresentation, or false statements made in the application and investigation for, or in the course of, the applicant's business.

Business practices, or conduct, deemed by the issuing authority to be contrary to the best interests, or safety, of the public.

Violation, within the preceding five years, of any law relating to theft, damage or trespass to property, sale of a controlled substance, or operation of a business.

The owner of the premises where an exhibition is planned would not qualify for a license under the terms of this chapter.

§ 258-16 Violations and penalties.

A violation of this chapter shall be a misdemeanor under Minnesota law. Civil penalties shall be subject to assessment pursuant to Chapter 1, Article I, of the Isanti City Code of Ordinances. However, nothing in this chapter shall be construed to limit the City's other available legal remedies for any violation of law, including, without limitation, licensing sanctions, criminal, civil, and injunctive actions. In addition, violation or failure to pay civil fines may result in future license or registration ineligibility.

§ 258-17 Severability.

If any section, subsection, sentence, clause or phrase of this chapter is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this chapter. The City Council hereby declares that it would have adopted this chapter and each section, subsection, sentence, clause or phrase thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, or phrases be declared invalid.