[HISTORY: Adopted by the Common Council of the City of Franklin 4-7-2015 by Ord. No. 2015-2170. Amendments noted where applicable.]
GENERAL REFERENCES
Transient merchants — See Ch. 237.
As used in this chapter, the following terms shall have the
meanings indicated:
One of the following types of identification:
Any of the following:
Audiovisual equipment.
Bicycles.
Bullion.
China.
Coins.
Computers, printers, software, and computer supplies.
Computer toys and games.
Crystal.
Electronic equipment and appliances.
Firearms, knives, and ammunition.
Fur coats and other fur clothing.
Furniture.
Golf clubs.
Genuine designer handbags and designer sunglasses.
Jewelry.
Lawn decorations.
Lawn equipment.
Leather coats or other leather clothing.
Motors.
Office equipment.
Paper money.
Pianos, organs, guitars, and other musical instruments.
Silverware and flatware.
Snow removal equipment.
Sports memorabilia with a resale value greater than $100.
Telephones.
Tools.
Videotapes or discs, audio tapes or discs, and other optical
media.
A corporation, trust or community chest, fund or foundation,
organized and operated exclusively for religious, charitable, scientific,
literary or educational purposes or for the prevention of cruelty
to children or animals, no part of the net earnings of which inures
to the benefit of any private shareholder or individual.
A person with whom a pawnbroker, secondhand article dealer
or secondhand jewelry dealer, or an agent thereof, engages in a transaction
of purchase, sale, receipt, or exchange of any secondhand article
or secondhand jewelry.
Any person who engages in the business of lending money on
the deposit or pledge of any article or jewelry, or purchases any
article or jewelry with an expressed or implied agreement of understanding
to sell it back at a subsequent time at a stipulated price.
An employee who has undergone the background check requirements of § 238-6 of the Municipal Code.
Every transaction conducted by a pawnbroker, secondhand article
dealer or secondhand jewelry dealer in which an article or articles
are received by a pawnbroker, secondhand article dealer or secondhand
jewelry dealer through purchase, consignment, or trade, or in which
a previous pawn agreement is renewed, extended, voided, or redeemed,
or for which a unique transaction number or identifier is generated
by their point-of-sale software, or an item is confiscated by law
enforcement, except:
The bulk purchase or consignment of new or used articles from
a merchant, manufacturer, or wholesaler having an established permanent
place of business, and the subsequent retail sale of said articles,
provided the pawnbroker, secondhand article dealer or secondhand jewelry
dealer must maintain a record of such purchase or consignment that
describes each item, and must mark each item in a manner that relates
it to that transaction record.
Retail and wholesale sales of articles originally received by
pawnbrokers, secondhand article dealers or secondhand jewelry dealers
by pawn or purchase, and for which all applicable hold and/or redemption
periods have expired.
An article listed in Subsections A through BB under the definition
of "article," owned by any person, except a wholesaler, retailer,
or licensed secondhand article dealer or secondhand jewelry dealer,
immediately before the transaction at hand.
Any person, other than an auctioneer, who engages in the
business of purchasing or selling secondhand articles and is not a
pawnbroker or a secondhand jewelry dealer as defined under this section.
Any person, other than an auctioneer, who engages in any
business of any transaction consisting of purchasing, selling, receiving,
or exchanging secondhand jewelry, who is not a pawnbroker as defined
under this section.
A.
License required. No person may engage in business as a pawnbroker,
secondhand article dealer or secondhand jewelry dealer in the City
of Franklin without first having obtained a license under this section.
B.
Exceptions. The requirements of this section do not apply to the
following:
(1)
Transactions involving occasional garage or yard sales, estate sales,
coin, gem, antique or stamp shows, conventions or auctions.
(2)
Transactions entered into by a person engaged in the business of
junk collector, junk dealer, or scrap processor, as described in § 70.995(2),
Wis. Stats.
(3)
Transactions between pawnbrokers or secondhand dealers licensed under
this section.
(4)
Any transaction between a buyer of a new article or jewelry and the
person who sold the article or jewelry when new which involves a return
or exchange of the article or jewelry for a different, new article
or jewelry.
(5)
Any transaction as a purchaser or seller of a secondhand article
which the person bought from a charitable organization if the secondhand
article was a gift to the charitable organization.
(6)
Any transaction while operating as a charitable organization or conducting
a sale the proceeds of which are donated to a charitable organization.
Any person seeking to obtain a license to conduct business as
a pawnbroker, secondhand article dealer or secondhand jewelry dealer
must submit an application to the City Clerk. The Clerk shall provide
the applicant with application forms approved by the Police Department.
A.
The City shall grant the license if the applicant, including an individual,
a partner, a member of a limited liability company or an officer,
director or agent of any corporate applicant, has not been convicted
within the preceding 10 years of a felony or within the preceding
10 years of a misdemeanor, statutory violation punishable by forfeiture
or county or municipal ordinance violation in which the circumstances
of the felony, misdemeanor or other offense substantially relate to
the circumstances of being a pawnbroker, secondhand jewelry dealer,
secondhand article dealer or secondhand article dealer mall or flea
market owner.
B.
No license issued under this chapter may be transferred.
C.
Each license is valid from July 1 until the following June 30.
D.
License fee. The annual license fee for a license issued under this
chapter shall be in the amount of $500.
Each license issued under this chapter must be displayed in
a conspicuous place visible to anyone entering a licensed premises.
The Police Department shall investigate each applicant for a
pawnbroker license, secondhand article dealer license or secondhand
jewelry dealer license to determine whether the applicant has been
convicted of a felony, misdemeanor, statutory violation punishable
by forfeiture, or county or municipal ordinance violation in which
the circumstances of the felony, misdemeanor, or other offense substantially
relate to the circumstances of the licensed activity and, if so, the
nature and date of the offense and the penalty assessed. The results
of the investigation shall be furnished to the City Clerk in writing.
A.
Records to be maintained.
(1)
Identification of seller. No pawnbroker, secondhand article dealer,
or secondhand jewelry dealer may engage in a transaction of purchase,
receipt or exchange of any secondhand article or secondhand jewelry
from a customer without securing adequate identification from the
customer at the time of the transaction.
(2)
Declaration of seller's ownership.
(a)
For each purchase, receipt, or exchange of any secondhand article
or secondhand jewelry from a customer, every pawnbroker, secondhand
article dealer, and secondhand jewelry dealer licensed under this
chapter shall require the customer to complete and sign, in ink, a
property transaction form, in compliance with § 134.71(12),
Wis. Stats. No entry on such a form may be erased, mutilated, or changed.
The pawnbroker, secondhand article dealer, or secondhand jewelry dealer
shall retain an original and a duplicate of each form for not less
than one year after the date of the transaction.
(b)
For each purchase, receipt, or exchange of any secondhand article
or secondhand jewelry from a customer, every pawnbroker, secondhand
article dealer, and secondhand jewelry dealer licensed under this
chapter shall keep a permanent record and inventory in such form as
the Police Department shall prescribe, in which the dealers shall
record legibly in English the name, address and date of birth of each
customer and driver's license number or number of other adequate
identification presented. The dealer shall also record the date, time,
and place of the transaction and an accurate and detailed account
and description of each article being purchased, including, but not
limited to, any trademark, identification number, serial number, model
number, brand name, description by weight and design of such article,
and other identifying marks, identifying descriptions of the personal
nature, and when applicable, whether the article is a male or female
item. The book shall be kept in ink, and no entry in such book shall
be erased, mutilated, or changed. The pawnbroker, secondhand article
dealer, or secondhand jewelry dealer shall retain an original and
a duplicate of each record and inventory for not less than one year
after the date of transaction.
(c)
Every pawnbroker, secondhand article dealer, and secondhand
jewelry dealer shall on a weekly basis prepare a list that contains
the name and address of each customer during the week for which the
list was prepared, the date, time, and place of each transaction with
each of those customers, and a detailed description of the secondhand
article or secondhand jewelry, including the serial number and model
number, if any. The dealer or pawnbroker shall retain the list for
not less than one year after the date on which the list was prepared.
(d)
The dealer or pawnbroker shall also obtain a written declaration
of the seller's ownership which shall state whether the article
or jewelry is totally owned by the seller, how long the seller has
owned the article or jewelry, whether the seller or someone else found
the article or jewelry and, if the article or jewelry was found, the
details of its finding. The dealer or pawnbroker shall retain an original
and duplicate of the declaration for not less than one year after
the date of the transaction.
(e)
The seller shall sign, in ink, his or her name in such inventory
register and on the declaration of ownership.
(f)
Such inventory registers and declarations of ownership shall
be made available to any police officer for inspection at any time
that the dealer's principal place of business is open or within
one business day of an officer's request.
(3)
Digitized photographs.
(a)
Effective 60 days from the date of notification by the Police
Department of acceptable photographic or video standards, the licensee
must also take a color photograph or color video recording of every
item a pawnbroker, secondhand article dealer or secondhand jewelry
dealer has purchased that does not have a unique serial or identification
number permanently engraved or affixed. This requirement does not
apply to computer software, computer or video games, DVDs or video
games, and golf clubs.
(b)
When a photograph is taken, it must be maintained in such a
manner that the photograph can be readily matched and correlated with
all other records of the transaction to which they relate.
(c)
Photographs must be available to any police officer upon request.
(d)
Items photographed must be accurately depicted.
(e)
Effective 60 days from the date of notification by the Police
Department, licensees must fulfill this photograph requirement by
submitting them as digital images, in a format specified by the Police
Department, electronically cross-referenced to the reportable transaction
they are associated with.
(4)
Digital video system. The licensee shall maintain a digital video
system that records all transactions as they occur and captures the
entire transaction. The video also must capture a full face shot of
the person conducting the transaction, and must be maintained in such
a manner that the video can be readily matched and correlated with
all other records of the transaction to which they relate. Such videos
must be available to any police officer upon request. Entries of required
digital images shall be retained a minimum of 90 days.
B.
Firearms and jewelry records to be maintained.
(1)
Report of receipt. Every pawnbroker, secondhand article dealer, or
secondhand jewelry dealer in the City of Franklin who obtains by pawn,
purchase or exchange any secondhand firearm, whether smooth bore,
shotgun, rifle or handgun, shall, within one business day after receiving
such firearm, report to Police Department the fact that the same has
been received, with the name, address, date of birth, and description
of the person from whom such firearm was received, together with a
description of such firearm.
(2)
Every pawnbroker, secondhand article dealer, or secondhand jewelry
dealer in the City of Franklin who obtains in pawn, purchase or exchange
any secondhand article made in whole or in part of platinum, gold,
silver, copper, brass, bronze or other precious metal, or precious
or semiprecious stones or pearls, shall, within one business day after
receiving such article, report to the Police Department the fact that
same has been received, with the name, address, date of birth, and
description of the person from whom such jewelry was received, together
with the description of such article.
C.
Inspection of records. Records must at all reasonable times be open
to inspection by any police officer. Data entries shall be retained
for at least one year from the date of transaction. Digital images
or video recordings shall be retained a minimum of 30 days.
D.
Electronic reporting.
(1)
Daily reports to Police Department. A licensee must submit every
reportable transaction to the Police Department within 24 hours of
the transaction. A licensee must provide to the Police Department
all reportable transaction information by transferring it from licensee's
computer to the Northeastern Wisconsin Property Reporting System ("NEWPRS").
All required records must be transmitted completely and accurately
in accordance with standards and procedures established by the issuing
authority.
(a)
If a licensee is unable to successfully transfer the required
reports to NEWPRS within 24 hours of the transaction, the licensee
must provide the Police Department, upon request, printed copies of
all reportable transactions, along with the video recording(s) for
that date, no later than noon the next business day after the failure
occurred.
(b)
If the problem is determined to be in the licensee's system
or with the licensee's Internet connection, 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 this section and shall be charged a reporting failure penalty of
$100 daily, until the error is corrected.
(c)
If the problem is determined to be outside the licensee's
system, the licensee must continue to provide the required reports
in this section and resubmit all such transactions via the Internet
when the error is corrected.
(d)
If a licensee is unable to capture, digitize or transmit the
photographs required under this section, the licensee must immediately
take all required photographs with a still camera, cross-reference
the photographs to the correct transaction, and make the pictures
available to the Police Department upon request.
(e)
Regardless of the cause or origin of the technical problems
that prevented the licensee from uploading the licensee's reportable
transactions, upon correction of the problem, the licensee shall upload
every reportable transaction from every business day the problem had
existed.
(f)
The Police Department may, upon presentation of extenuating
circumstances, delay the implementation of the daily reporting penalty.
E.
Holding.
(1)
Any secondhand article or secondhand jewelry purchased or received
by a pawnbroker shall be kept on the pawnbroker's premises or
other place for safekeeping for not less than 30 days after the date
of purchase or receipt, unless the person known by the pawnbroker
to be the lawful owner of the secondhand article or secondhand jewelry
recovers it. Any secondhand article or jewelry purchased by a secondhand
article dealer or secondhand jewelry dealer shall be kept on the dealer's
premises or other place for safekeeping for not less than 21 days
after the date of purchase or receipt. Any article or jewelry shall
be held separate and apart from any other transaction and shall not
be changed or altered in any manner. The dealer shall permit the Chief
of Police or any other police officer designated by the Chief to inspect
the article or jewelry during the holding period within one business
day of an officer's request.
(2)
Section 238-7E(1) above does not apply if the secondhand article or secondhand jewelry transaction is submitted to the police electronically as described in § 238-7D(1). Any secondhand article or secondhand jewelry purchased or received by a pawnbroker, secondhand article dealer, or secondhand jewelry dealer that is submitted to the police electronically as described in § 238-7D(1) shall be kept on the pawnbroker's, secondhand article dealer's or secondhand jewelry dealer's premises or other place for safekeeping for not less than 15 days after the date the report is electronically submitted. Any secondhand article or secondhand jewelry shall be held separate and apart from any other transaction and shall not be changed or altered in any manner. The dealer shall permit the Chief of Police or any other police officer designated by the Chief to inspect the article or jewelry during the holding period within one business day of an officer's request.
(3)
Any coin or bullion purchased by a pawnbroker, secondhand article
dealer, or secondhand jewelry dealer shall be kept on the dealer's
premises or other place for safekeeping for not less than 48 hours
after the date of purchase or receipt. Any coin or bullion shall be
held separate and apart from any other transaction and shall not be
changed or altered in any manner. The dealer shall permit the Chief
of Police or any other police officer designated by the Chief to inspect
the coin or bullion during the holding period.
(4)
No holding periods apply to any secondhand articles or secondhand
jewelry consigned to a pawnbroker, secondhand article dealer, or secondhand
jewelry dealer.
(5)
The Chief of Police, or any police officer designated by the Chief,
in his or her discretion, may cause any object which has been exchanged
or purchased by a dealer licensed under this chapter, which he or
she has reason to believe was not sold or exchanged by the lawful
owner to be held for the purposes of identification or investigation
for such additional reasonable length of time as the Chief of Police
or designee deems necessary.
(6)
Redemption period. Any person pledging or depositing an item for security must have a minimum of 60 days from the date of that transaction to redeem the item before it may be forfeited and sold. During the sixty-day holding period, items may not be removed from the licensed location except as provided in § 238-7E(5). Licensees are prohibited from redeeming any item to anyone other than the person to whom the receipt was issued, or to any person identified in a written and notarized authorization to redeem the property identified in the receipt, or to a person identified in writing by the pledger at the time of the initial transaction and signed by the pledger, or with approval of the Chief of Police, or Chief's designee. Written authorization for release of property to persons other than the original pledger must be maintained along with original transaction record in accordance with § 238-7A, above. An individual may redeem an item 72 hours after the item was received on deposit, excluding Sundays and legal holidays.
Every pawnbroker, secondhand article dealer or secondhand jewelry
dealer shall have on premises a person in charge at all times that
the pawnbroker, secondhand article dealer or secondhand jewelry dealer
is open to the public.
No pawnbroker, secondhand article dealer, or secondhand jewelry
dealer may engage in a transaction of purchase, receipt or exchange
of any secondhand article or secondhand jewelry from an unemancipated
minor unless the minor is accompanied by his or her parent or guardian
at the time of the transaction or the minor provides written consent
from his or her parent or guardian to engage in the transaction.
The City may, upon sufficient cause, suspend, revoke, or deny
renewal of any license issued under this chapter. Cause for suspending,
revoking or denying renewal of such license shall include, but not
be limited to, the following:
A.
Violations of this chapter; violations of §§ 134.71,
943.10 (Burglary), 943.11 (Entry into locked vehicle), 943.12 (Possession
of burglarious tools), 943.20 (Theft), 943.201 (Unauthorized use of
an individual's personal identifying information or documents),
943.203 (Unauthorized use of an entity's identifying information
or documents), 943.34 (Receiving stolen property), 943.37 (Alteration
of property identification marks), 943.38 (Forgery), 943.39 (Fraudulent
writings), 943.392 (Fraudulent data alteration), 943.40 (Fraudulent
destruction of certain writings), 948.62 (Receiving stolen property
from a child), and 948.63 (Receiving property from a child) of the
Wisconsin Statutes; or violations of local ordinances in conformity
with such provisions.
B.
Any fraud, misrepresentation, or false statement contained in the
application for a license.
A.
Any person, firm or corporation violating this chapter shall, upon
conviction for a first offense, forfeit $250, and in default of payment
shall be imprisoned in the House of Correction until such forfeiture
is paid, but not more than the number of days set forth in § 800.095,
Wis. Stats.
B.
Any person, firm or corporation violating this chapter shall, upon
conviction for the second offense, forfeit $500, and in default of
payment shall be imprisoned in the House of Correction until such
forfeiture is paid, but not more than the number of days set forth
in § 800.095, Wis. Stats.
C.
Any person, firm or corporation violating this chapter shall, upon
conviction for the third offense, be ordered to cease business operations
for a period of 10 days and shall also forfeit $500, and in default
of payment shall be imprisoned in the House of Correction until such
forfeiture is paid, but not more than the number of days set forth
in § 800.095, Wis. Stats. In addition, upon any third offense,
without regard to citation proceedings or a conviction thereupon,
the license may be subject to revocation proceedings.