City of Bradford, PA Secondhand Dealers

Findings. The City of Bradford Council makes the following findings regarding the need to regulate pawnbrokers, secondhand dealers, junk dealers, auto salvage dealers and scrap iron and metal processors operating within the City:

(1)

Pawnbrokers, secondhand dealers, junk dealers, auto salvage dealers and scrap iron and metal processors and businesses associated with those occupations provide an opportunity for persons committing a crime to conceal that crime and profit from that crime by using those establishments to receive and transfer stolen property easily and quickly.

(2)

Because of the propensity of pawnbrokers, secondhand dealers, junk dealers, auto salvage dealers and scrap iron and metal processors to attract criminals attempting to conduct transactions involving stolen goods, those establishments have the potential to be generally injurious to the maintenance and development of healthy adjacent commercial, recreational and residential areas.

(3)

Consumer protection regulation is warranted in transactions involving pawnbrokers, secondhand dealers, junk dealers, auto salvage dealers and scrap iron and metal processors in light of the potential for abuse.

(4)

To safeguard the public health, safety and welfare and to help stabilize costs associated with the regulation of the establishments identified in this chapter, it is necessary to require licensing and regulation of those establishments.

Purpose. The City Council enacts this chapter in order to further the following objectives:

(1)

The prevention of pawnbrokers, secondhand dealers, junk dealers, auto salvage dealers and scrap iron and metal processors and associated businesses from being used as facilities for the commission or furtherance of crimes.

(2)

The identification of criminal activities through timely collection and sharing of transaction information.

(3)

The promulgation of consumer protection standards.

(4)

To protect property values, prevent blight and protect the public health, safety and general welfare.

(5)

To recover the City's costs of regulation of the identified establishments.

§ 172-2 Definitions.

For the purpose of this chapter, the following words or phrases shall have the meanings respectively ascribed to them by this section:

AUTO SALVAGE DEALER

Any junk dealer engaged exclusively in the business of purchasing or receiving, wrecking, or dismantling and the sale or exchange of motor vehicles for the purpose of salvaging parts or material therefrom.

CITY

The City of Bradford, McKean County, Pennsylvania.

COLLECTOR VEHICLE

Any vehicles used solely or in part for the collection, transportation, or handlings of junk, scrap, or secondhand property.

GOODS

Any item not specifically covered by the other definitions contained in this section.

JUNK

Any personal property which is or may be salvaged for reuse, resale, reduction or similar disposition, or which is possessed, transported, owned, collected, accumulated, dismantled or assorted for any of the aforesaid purposes. Without limiting the aforesaid definition of "junk," the term shall include used or salvaged rope, bags, paper, rags, glass, rubber, wood pallets and similar articles of property and used motor vehicles or parts thereof which are used, owned or possessed for the purpose of wrecking or salvaging parts or materials therefrom.

JUNK DEALER

Any person whose principal business is buying, exchanging, collecting, receiving, storing, accumulating, selling, or otherwise handling junk.

LICENSEE

Any person, corporation, partnership, firm, association or other establishment or entity required to be licensed pursuant to this chapter.

PAWNBROKER

Any person who loans money on deposit or pledges of personal property, or other valuable things, other than securities or printed evidence of indebtedness, or who deals in the purchasing of personal property or other valuable things on conditions of selling the same back again at a stipulated price. Any person who deals in the purchasing of secondhand personal property or other valuable things with the intent to resell, recycle, trade, or retain.

PRECIOUS METALS

Items containing or being of gold, silver, platinum, including but not limited to jewelry and silver services, but excluding ingots, bullion or photographic film or any article containing less than 5% gold, silver, or platinum by weight.

SCRAP IRON AND METAL PROCESSOR

Any junk or scrap metal dealer engaged exclusively in the business of purchasing or receiving scrap iron and metal (except scrapped motor vehicles not purchased from a licensed auto salvage dealer or junk dealer) and the storing, processing, recycling, and sale of exchange thereof.

SECONDHAND PROPERTY

Any household furniture, used firearms, used wearing apparel, used lumber, used bricks, used tile, used plumbing fixtures, used electrical fixtures, used articles of precious metal, used jewelry, used electronic equipment, used tools, and any other used articles or personal property bought and sold by and from other than the original purchaser or user.

§ 172-3 Firearm regulation.

Firearms shall be specifically excluded from regulation under the provisions of §§ 172-12 and 172-16 of this chapter as the sale and holding period for firearms is regulated by 18 Pa.C.S.A. § 6101 et seq. ("Uniform Firearms Act").

§ 172-4 License required.

It shall be unlawful for any person, corporation, partnership, firm, association or other establishment to engage in the business of pawnbroker, secondhand dealer, junk dealer, auto salvage dealer or scrap iron and metal processor in the City of Bradford without first paying a license application fee as set forth in this chapter, securing a license, and otherwise complying with this chapter.

§ 172-5 Location for sale of goods.

No person, individual or corporation, partnership, or firm shall engage in the selling of goods or attempt to engage in the selling of goods on a parking lot or parking lots or any other property not owned by the seller without first obtaining the written permission of the owner, occupant, lessee, agent or trustee of such property to engage in such activity on the property.

§ 172-6 Secondhand or junk dealers.

Any person, corporation, partnership, firm, association or other establishment whose business in whole or in part is that of purchasing, selling, exchanging, storing, or receiving secondhand articles of any kind is declared to be a secondhand dealer of junk or junk dealer; provided that this definition shall not apply to retail merchants who repossess their own merchandise sold on title retaining contract or chattel mortgage basis or who accept merchandise as a part payment on new sales.

§ 172-7 Application for license; investigation of applicant; issuance; renewal.

Application for a license required under this chapter shall be made to the City upon forms prepared by the City and provided to applicants. The applicant shall state his name, whether a person, firm or corporation, the place at which such business is to be located or maintained, the number and description of collector vehicles to be used in the conduct of business, and the applicant's residence(s) for a period of three years preceding such application. The application so received by the City shall be referred to the City Administrator and by him/her to the Chief of Police and Code Enforcement Officer for the purpose of investigation of the applicant and inspection of collector vehicles and the premises to be used in the conduct of such business.

After receipt of such departments' recommendations, the application shall be submitted to the City Council, accompanied by evidence that the business premises have been inspected within the preceding six months and found to be in compliance with all applicable ordinances and licensing requirements. The City Council, upon a determination that neither the applicant nor an officer, partner or owner of a company who may be applying have not been convicted of any felony and/or listed misdemeanor offenses related to the person's likelihood to serve the public in a fair, honest, and open manner and that all requirements of this chapter have been complied with, shall grant a license to said applicant. The sole power to grant licenses hereunder is vested with City Council. Licenses granted by the City Council shall be issued by the City Administrator.

Licenses shall be issued annually and shall be effective for a calendar year. Licenses must be renewed each year. The City Administrator, after consultation with the Chief of Police and Code Official, shall develop a form for initial application and renewal of a license, requiring such information as may be necessary to assure compliance with this chapter.

§ 172-8 Fees and exemptions.

The fees for licenses issued under this chapter shall be $150 per annum for the initial license and $100 for an annual renewal. This fee is due upon approval of the license. The initial fee shall be for the remainder of the fiscal year in which the application was approved. After that, renewal applications and the annual license fee is due prior to the next calendar year beginning, but no later than 30 days after the beginning of that calendar year. If an application for renewal of a license is not received, and any required fee paid, within 30 days of the beginning of the calendar year license period, the license shall be deemed to have expired and a new license application shall be necessary with the appropriate fee for a new licensee.

No person or entity that is entirely devoted to charitable or religious purposes and whose entire income is devoted to charitable and religious purposes shall be subject to the fees prescribed for a license under this section. Such fees are hereby waived as to such person, but they shall apply for and obtain a license as provided in this chapter.

The fees for inspections, if any, required prior to issuance of license shall be included in the license fees. The fees for inspections requested or required by a violation of this chapter shall be charged in addition to those set forth above.

The initial license fee and renewal license fee may be modified from time to time by resolution of City Council.

No person or entity whose primary function is in the buying and selling of used clothing shall be subject to any portion of this chapter.

No person or entity whose primary function is in the buying and selling of automobiles, motorcycles, ATVs or other titled and/or registered motorized equipment shall be subject to any portion of this chapter unless that same person or entity has a secondary function as an auto salvage dealer. If a person or entity has a primary function in the buying and selling of automobiles, motorcycles, ATVs or other titled and/or registered motorized equipment and has a secondary function as an auto salvage dealer, this chapter will only be applicable to that portion of the person or entity's business that is serving as an auto salvage dealer.

Any person or entity that, prior to the enactment of this chapter, is lawfully operating a business that would require licensing under this chapter shall be exempt from all future licensing and renewal fees.

§ 172-9 Certain persons prohibited from being licensees; revocation.

No person or entity who has been convicted of a felony or misdemeanor theft, receiving stolen property, false reports, false swearing, obstruction of justice, perjury, or any other offense that directly relates to the occupation herein licensed as provided for in this chapter shall be deemed to be a suitable person to receive a license pursuant to this chapter.

Any person, corporation, partnership, firm, association or other establishment to whom a license has been granted under this chapter may have his license suspended or revoked by the City at any time that the City determines that the licensee is not in compliance with the requirements of this chapter or has been convicted of any violation of this chapter after a reasonable notice and opportunity to be heard before City Council.

In case any person, corporation, partnership, firm, association or other establishment, or any clerk, agent, servant, or employee of the person, corporation, partnership, firm, association or other establishment shall be found guilty of violating any section of this chapter in a court of competent jurisdiction, the license issued to such entity may be revoked and such entity shall not be permitted to carry on such business within the City for a period of one year after such conviction after which time a new application for license shall be required.

§ 172-10 Inspection of vehicles and premises.

All collector vehicles and premises licensed, used or intended for use in connection with a license granted under this chapter shall be inspected before a license is issued or renewed.

§ 172-11 Information required; electronic transaction reporting; fees.

In addition to any other requirements of state statutes, every person licensed under this chapter shall require that the person from whom goods or a pledge is purchased or pawned give:

Seller's name.

Seller address.

Seller phone number.

Place of employment, if any.

(5)

General description.

(6)

Any government-issued photo identification card, a photocopy of which will be retained by the licensee.

Every licensee, except those exempted by operation of Subsection E below, shall, every Tuesday by 5:00 p.m. provide to the Chief of Police or his designee by means of electronic transmission or hand delivery to City Hall a ledger of all transactions in which the licensee received used goods by pawn, trade, purchase, or consignment, since the submission of the last report. (The report should reflect the previous seven days' transactions running from Monday to Monday submitting the report on Tuesday). A transaction reported by electronic transmission under this chapter shall not be required to be reported on paper forms.

All transactions, whether electronic or otherwise, shall require for reporting purposes, from the person from whom goods or a pledge is purchased or pawned:

(1)

Name, address, DOB and identification type and number and phone number.

(2)

Date and time of the transaction.

(3)

Complete detailed inventory of items, including any serial numbers.

(4)

Amount of money exchanged for the transaction.

(5)

A photograph that attempts to capture individual characteristics of each item bought, traded, or pawned, shall be maintained by the dealer for a period of not less than 24 months.

A licensee required by this section to report transactions shall be solely responsible for the costs associated with such reporting. Licensees may, however, charge the customer from whom the reportable item was purchased or pawned with a transaction registration fee which is equal to the fee charged of the licensee by the company that maintains the registration records, unless otherwise prohibited from doing so by state or federal law.

A licensee need not report transactions when the number of transactions taking place at a business location in each ninety-day period does not exceed 10. A pawnbroker, secondhand dealer, or other licensee reasonably believing a location at which he or she conducts a business qualifies under this subsection for exemption from reporting and wishing to be exempt from the requirements to report transactions electronically, shall sign, under penalties of perjury, a declaration to that effect in a form developed by the Chief of Police or his designee, and once the declaration is signed, so long as the volume of transactions does not exceed 10 each ninety-day period, transactions taking place at that business need not be reported electronically, but shall be reported on paper form within three days of the date of transaction.

§ 172-12 Period of retention.

All used items purchased, traded or taken in pawn shall remain in possession of the pawnbroker for at least 15 days prior to sale. All items taken in pawn shall be stored separate and apart from other items.

Due to the inherent fluctuation of market price for precious metals, to include gold, silver, and platinum including but not limited to jewelry and silver services, will retain unaltered, tagged to identify seller for no less than seven days.

§ 172-13 Right of entry of police, Building Inspector or Fire Department.

Every licensee under this chapter shall provide access to the premises where business is conducted or property is stored to any police officer, the Code Official, Building Inspector or the Fire Marshal, without warrant, during regular hours of business, or at any time the licensee or his agent are on the premises.

§ 172-14 Sale or possession of items with serial numbers.

No licensee under this chapter or employee thereof shall conceal or misrepresent the identity by removing, concealing, defacing, adding to, substituting, or altering the serial number or manufacturers number on any motor vehicle, motor, appliance, mechanical device, watch, clock, camera, precision instrument, outboard motor, radio, firearm or any other article or thing where on the manufacturer has placed numbers for the purpose of identification; by altering or replacing any part of such article or thing bearing the serial or manufacturer's number with a new or replaced part upon which the proper serial or manufacturer's number has not been stamped or placed.

No person licensed under this chapter shall knowingly deal in or possess any motor vehicle, motor, appliance, mechanical device, watch, clock, camera, precision instrument, outboard motor, radio, firearm, or other article or thing from which the serial numbers have been removed, concealed, defaced, added to, substituted or altered.

In all prosecutions under this section, possession by any dealer, distributor, wholesaler or person, firm, partnership, or corporation in the business of buying and selling of any motor vehicle, motor, appliance, mechanical device, watch, clock, camera, precision instrument, outboard motor, radio, firearm, or other article or thing with the manufacturer's number or identification number removed, concealed, defaced, added to, substituted, or altered, shall be prima facie evidence of violation of the provisions of this section.

§ 172-15 Police order to hold property.

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. If the hold was conveyed verbally, the hold shall be confirmed by the investigating agency within 72 hours either in writing or electronic transmission. The order to hold an item shall expire 30 days from the date it is placed unless the holding agency seizes the item as evidence or determines the hold is still necessary and notifies the business in writing or electronic transmission to continue the hold for an additional 30 days.

If an item is identified as stolen, or as evidence in a criminal case, by any law enforcement agency, the investigating agency may, but are not limited to:

(1)

Seize the item and retain it as evidence; and/or

(2)

Place the item on hold and extend the hold as provided in this section; and/or

(3)

Photograph, videotape, or otherwise electronically capture the item.

All holds of any item shall expire in 60 days from the date the hold was issued, and the business holding the property may dispose of it as if a hold had never been placed unless the item is necessary, for evidentiary purposes, for an investigation which has resulted in criminal charges being brought. In that case, the investigating agency may continue the hold past 60 days and until the case is resolved. The investigating agency must notify the business in writing, on official department letterhead, of the following:

(1)

The need for the item to be held further; and

(2)

The agency complaint or case number; and

(3)

The name and telephone number of the investigating officer(s); and

(4)

The name of the court and the court docket number assigned to the case.

It is the sole responsibility of the investigating officer, and/or their agency, to notify the business promptly when the case is resolved and there is no longer a need to hold said item.

§ 172-16 Purchase and sale prohibited during certain hours.

No licensee shall sell or purchase by sale, barter, exchange or otherwise, an article under a license issued pursuant to this chapter between the hours of 9:00 p.m. and 7:00 a.m. of the following day.

§ 172-17 Posting of business sign; records required.

Every person licensed under this chapter shall post in a conspicuous place in or upon his shop, store, wagon, vehicle, building, or other place of business, a sign having his name and occupation legibly inscribed thereon, and shall keep a separate book or electronic record, open to inspection by members of the City Police Department, or other public officers, in which shall be written in the English language at the time of the purchase or exchange of such articles or junk, all information requested under this chapter and the following:

A description of such articles or junk, including salvaged iron, aluminum, brass, lead, copper, and other base metal and their compounds or combinations, the quantity and/or weight of such items; and

The name, description and residence of the person including a government issued photo identification and the vehicle license plate or a nondriver's identification number, from whom the same was purchased and received; and

The day and hour when such purchase or exchange was made.

§ 172-18 Purchases from certain persons prohibited.

No licensee shall receive any article from any person who is at the time visibly intoxicated or from any person whom he has reason to suspect is not the owner of the property or from any minor under the age of 18 years without consent of the parents of such minor.

§ 172-19 Violations and penalties.

Any person who shall violate any portion of this chapter shall, upon conviction, pay a fine of not less than $250 for the first offense in any twelve-month period, for a second offense in any twelve-month period pay a fine of not less than $500, and for a third or subsequent offense in any twelve-month period pay a fine of $1,000 and/or imprisonment for not more than 30 days or both. Each day or portion thereof in which a violation exists shall be considered a separate violation of this chapter. Each provision of this chapter which is violated shall be considered a separate violation. Such fine shall be in addition to any other fine which may be imposed under the provisions of any other ordinances of the City, Pennsylvania law, or federal law.