[HISTORY: Adopted by the Mayor and Council of the Borough of Runnemede 4-3-2018 by Ord. No. 18-05. Amendments noted where applicable.]
Editor’s Note: This ordinance also superseded former Ch. 276, Precious Metals and Gems, adopted 3-28-1990 by Ord. No. 90-2 (Ch. 77 of the 1970 Code), as amended.
The purpose of this chapter is to implement within the jurisdictional boundaries of the Borough of Runnemede and establish procedures pursuant to the New Jersey Pawnbroking law, N.J.S.A. 45:22-2 et seq.; facilitate the prevention of fraud, impositions and other abuses upon the citizens of the Borough of Runnemede; and ensure the difficulty of disposing of stolen property and aid in the recovery of stolen property.
No person shall use, exercise or carry on the business, trade or occupation of buying scrap gold, old gold, silver, jewelry, home electronics/audio and visual equipment, musical instruments, telephones and telephonic equipment, scales, computers, computer hardware and software, typewriters, word processers, scanners, sporting goods of all kinds, antiques, platinum, all other precious metals, tools of all kinds, televisions, DVRs, GPS, camcorders, car stereos, gift cards, furniture, clothing or other valuable articles, hereinafter referred to as "secondhand goods or articles," or being a secondhand dealer in the Borough of Runnemede without first having obtained a license from the Borough of Runnemede Police as hereinafter provided.
Words used in the present tense shall include the future, words in the plural shall include the singular number, and words in the singular number shall include the plural number. The word "shall" is always mandatory and not merely directory. As used in this chapter, the following terms shall have the following meanings indicated:
- ACCPETABLE IDENTIFICATION
- Acceptable forms of identification include: a current valid New Jersey driver's license or identification card, a current valid photo driver's license issued by another state, a valid United States passport, or other verifiable United States government-issued identification.
- ANTIQUE DEALER
- Any person, partnership, firm, association or corporation, other than a licensed pawnbroker or licensed secondhand dealer, having a place of business in the Borough of Runnemede for the purpose of purchasing, trading or dealing in antiques or primitives and who derives 75% of his or her gross sales from the sale of antiques or primitives.
- ANTIQUE or ANTIQUES
- One or more old and valuable art object or item no longer in production that is at least 50 years old. As used in this chapter, the term "antique" or "antiques" shall also mean "primitives."
- Any article of merchandise, including a portion of such article, whether a distinct part thereof or not, including every part thereof whether separable or not, and also including material for manufacture, and so as defined in N.J.S.A. 51:6-1.
- BUSINESS ENTITY
- Any and all forms of business organization operating pursuant to law, including but not limited to entities designated and/or operating as a partnership, limited liability company, corporation, "S" corporation, association or firm. For the purposes of this chapter, the term "business entity" includes a foreign business or business formed under the laws of another state, which business is authorized by the State of New Jersey Division of Revenue to conduct business within this state and, at all times relevant to this chapter, is in good standing with the New Jersey Division of Revenue. Foreign businesses include all forms of business entity not otherwise recognized by the laws of the State of New Jersey, such as, without limitation, a limited liability partnership.
- CHIEF OF POLICE
- The Chief of Police of the Borough of Runnemede or his or her designee.
- A computerized internet-capable database with hardware and software compliant to, accessible by, and acceptable to the Chief of Police.
- Any person, partnership, corporation, or other entity, whether permanent or itinerant, who on one or more occasions (through any means) buys or sells or otherwise exchanges or trades secondhand gold, silver, precious metals, gems or jewelry, and includes anyone advertising the purchase or sale of any of the aforementioned items.
- DESIGNATED VENDOR
- A person or entity who is appointed or designated by the Chief of Police who is authorized to collect and maintain precious metal transaction information or other purchase information as defined herein for the Borough of Runnemede.
- GARAGE SALE
- Includes all sales entitled "garage sale," "lawn sale," "attic sale," "rummage sale," "flea market," "auction sale" or "yard sale" or any similar causal sale of used tangible personal property which is advertised by any means whereby the public at large is or can be made aware of the sale.
- GIFT CARD
- A restricted monetary equivalent or script that is used by retailers or banks to be used as an alternative to a nonmonetary gift.
- Any person or business entity granted a license pursuant to this chapter and/or granted a license by the Department of Banking and Insurance in accordance with the pawnbroking law.
- Any person under the age of 18 years.
- Any person, partnership, association or corporation lending money on deposit or pledge of personal property, other than choses in action, securities, or printed evidences indebtedness; purchasing personal property on condition of selling it back at a stipulated price; or doing business as furniture storage warehouseman and lending money on goods, wares, or merchandise pledged or deposited as collateral security. For purposes of this chapter, the term "pawnbroker" shall include any secondhand dealer who also operates as a pawnbroker or undertakes any action or conduct which includes the business of a pawnbroker as defined in the pawnbroker law.
- PAWNBROKING LAW
- The New Jersey statute and implementing regulations. N.J.S.A. 45:22-2 et seq., and N.J.A.C. 3:16-1.1 et seq., respectively, and any and all amendments thereto, which govern and regulate pawn shop business and pawnbrokers operating within the State of New Jersey.
- Any individual which is not a business entity. For the purposes of this chapter, the term "person" shall also include an individual operating a business as a sole proprietorship.
- An article or articles deposited with a pawnbroker in the course of business.
- Any person who delivers the pledge into the possession of a pawnbroker, unless such person discloses that he is or was acting for another, and in such event "pledgor" means the disclosed principal.
- Not only the exchange of money for precious metals, but the exchange or trading of any tangible or intangible property for precious metals.
- REPORTABLE TRANSACTION
- Every transaction conducted by a dealer in which precious metals, or other tangible property, are purchased or exchanged from or with the public.
- SECONDHAND DEALER or DEALER IN SECONDHAND GOODS
- As used in this chapter, any person, partnership, corporation, association, joint venture, trustee, court-appointed representative or agent thereof which operates a business for profit which buys, sells, possesses on consignment for sale or trades jewelry, stamps, coins or any other precious metals which may have been previously owned by a consumer or which derives more than 35% of its gross receipts from the sale, consignment for sale, pledge or trade of any goods, wares or merchandise which have been previously owned by a consumer, including, but not limited to, furniture, appliances, consumer electronic goods, clothing, automobile accessories, books, magazines, athletic cards and memorabilia or precious metals, whether in bulk or manufactured state. The term "secondhand dealer" shall include businesses commonly known as "pawnbrokers," "trading posts," "swap shop operators," "stamp dealers." "coin dealers," "jewelers" and "auction houses" that purchase and resell items from persons other than dealers and suppliers. The fact that any business does any of the following acts shall be prima facie proof that said business is a secondhand dealership:
- A. Advertises in any fashion that it buys and sells secondhand or used items. Such advertisements shall include, but are not limited to, media advertisements, telephone listings, and signs, whether on the exterior or interior of the business.
- B. Devotes a significant segment or section of the business premises to the purchase or sale of secondhand or used items.
- C. Secondhand goods: goods which have been previously owned, worn or used by a consumer and/or that are not new. For purposes of this chapter, the term "secondhand goods" shall include "secondhand watches" except where the context clearly indicates to the contrary.
- D. Secondhand watches. A watch shall be deemed secondhand if:
- (1) It as a whole or case thereof or movement thereof has been previously sold to or acquired by any person who bought or acquired the same for his use or use of another, but not for resale; provided, however, that a watch which has been sold or acquired and is thereafter returned either through exchange or for credit to the original individual, firm, partnership, association or corporation who sold or passed title to such watch shall not be deemed to be a secondhand watch for the purposes of this chapter if such vendor shall keep a written or printed record setting forth the name of the purchaser thereof, the date of the sale or transfer thereof, and the serial number (if any) on the case of the movement, and any other distinguishing numbers or identification marks, which said record shall be kept for at least five years from the date of such sale or transfer and shall be open for inspection during all business hours by the Camden County Prosecutor or the prosecutor's duly appointed representative;
- (2) Its case, serial numbers or movement numbers or other distinguishing numbers or identification marks shall be erased, defaced, removed, altered or covered; or
- (3) If its movement is more than five years old and has been repaired by any person or persons, including the vendor, notwithstanding that may have been returned either through an exchange or for credit to said original vendor. Cleaning and oiling a watch movement or recasting the movement in a new case shall not be deemed watch repair for the purposes of this chapter.
- TRANSIENT BUYER
- A dealer who has not been in any retail business continuously for at least six months at the address in the municipality where the dealer is required to register or who intends to close out or discontinue all retail business in the Borough of Runnemede within six months or as so defined in N.J.S.A. 51:6A-5 and N.J.A.C. 13:47C-1.1.
No person, either as owner, manager, lessee, officer or agent, or in any other business, within the Borough of Runnemede, shall operate or permit to operate as a pawnbroker/secondhand dealership without first having obtained a license from the Borough of Runnemede to do so. If an individual is deemed a pawnbroker or business deemed a pawn shop, then a license from the Commissioner of Banking and Insurance is required (N.J.S.A. 45:22-2).
Exemptions. The following are exempt from the requirements of this chapter:
Sales conducted by governmental, civic, patriotic, fraternal, educational, religious or benevolent organizations which have been in active and continuous existence for at least one year prior to the date holding of the sale or which are incorporated as a not-for-profit corporation by the state.
Sales or purchases which are regulated by the licensing laws of the state, including automobile dealers, used part dealers and automotive parts recyclers.
Antique dealers. As used in this section, an antique dealer is defined as one who derives 75% of his or her gross sales each year from the sale of antiques and/or primitives. As used in this section, an "antique" or "primitive" is defined as an old and valuable art object or article no longer in production that is at least 50 years old. As used in this section, the term "sale" does not include an exchange, trade or swap of items.
Application. An application for a license required shall be made in writing to the Borough of Runnemede which shall minimally set forth:
The name of the individual, partnership, corporation or association applying for a license;
The residence, phone number, date of birth, driver's license number, and social security number or federal tax identification number of the applicant or partners or, if a corporation or association, the residence, phone number and driver's license numbers of the officers and all shareholders owning more than 5% of the outstanding shares of stock;
The location for where the license is requested;
Whether the applicant, its partners, officers or listed shareholders have been convicted of any criminal offense or ordinance violation (other than traffic or parking offenses) in any jurisdiction and, if so, a list of such convictions with date and prosecuting jurisdiction; and
Whether the applicant, its partners, officers or listed shareholders have held a license or had an interest in a license issued by this or any other jurisdiction regulating the purchase or sale of secondhand property revoked for cause and, if so, a list of the date of the revocation and jurisdiction.
In the case of a pawnbroker, the applicant's name, address, fingerprints and written consent for a criminal history record must be forwarded to the Commissioner.
Any pawnbroker or secondhand dealer shall, before engaging in the business within the Borough of Runnemede, apply for and secure a license to engage in, conduct, and transact such a business, the fee for which license shall be the sum of $100. The license shall be renewed each year. Application for renewal of the license shall be made to the Borough Clerk on or before January 31 of each year, and shall be submitted to the Borough Council for approval. The annual renewal fee shall be $10. Should the license be denied, the license fee shall be refunded to the applicant.
Following the issuance of a license, the licensee shall secure the acceptable database software system. Any software licensing fee shall be paid by the licensee direct to the software provider, and shall not be part of and is in addition to the license fee required by the Borough of Runnemede. The licensee will secure the RAPID system or a comparable system as approved by the Chief of Police.
Issuance. The Borough Clerk shall issue the license requested unless the Borough of Runnemede shall find:
The applicant is under the age of 18;
The location requested is not a permanent structure;
The applicant, its partners, officers or listed shareholders have been convicted of or have pleaded guilty to any offense related to theft, burglary, or purchasing or receiving stolen items under the laws of this state, the Borough of Runnemede or any other jurisdiction within the past 10 years, or have forfeited a bond to appear in court to answer for charges for such offenses during said time;
That the location requested and structure to be used would not comply with all applicable laws, including the Zoning Code of the Borough of Runnemede;
That the applicant, its partners, officers or listed shareholders have held a license or had an interest in a license issued by the Borough of Runnemede or any other jurisdiction regulating the purchase or sale of secondhand property which was revoked for cause; or
That the applicant, its partners, officers or listed shareholders have knowingly furnished false or misleading information or withheld relevant information on any application for a license required by this chapter or any investigation into any application.
Posting. Every license issued under the provisions of this chapter shall, at all times during the period for which it is effective, be posted in a conspicuous place, at or near the principal entrance to the premises for which the license is issued.
Revocation. Any license issued for a secondhand dealer may be revoked or suspended for a period of time not to exceed 30 days by the Mayor and Council, if they shall find after a hearing:
That the licensee, its officers, agents or employees have violated any of the provisions of this chapter, the laws of the state or the ordinances of the Borough of Runnemede in the operation of the business; or
That the licensee, its partners, officers or shareholders have been convicted of any offense as set forth in this chapter; or
That the licensee, partners, officers or shareholders have knowingly furnished false or misleading information or withheld relevant information on any application for a license required by this chapter or any investigation into any application. The licensee shall be responsible for the acts of its agents, servants and employees in the operation of the business. Prior to holding a hearing concerning the question of whether a license shall be revoked or suspended, the Mayor shall give at least 10 days' written notice to the licensee setting forth the alleged violation. The licensee may present evidence and cross-examine witnesses at such hearing.
False or misleading application. In addition to being subject to a penalty as hereinafter set forth, any person who obtains a license as herein provided by furnishing the Borough of Runnemede with a false or misleading application shall, upon the discovery thereof, suffer an immediate revocation of such license and forfeiture of all fees paid.
Transfer. No license issued under this chapter may be transferred to any other person, partnership, corporation or association.
Change of location. No licensee shall carry on any business required to be licensed under this chapter except at the location designated on the license. Should the licensee wish to change the location, application shall be made to the Borough of Runnemede Clerk for such change in writing.
Hours of operation. No licensee shall purchase any goods, wares, articles or things, whatsoever, or lend any money to any person between the hours of 11:00 p.m. and 7:00 a.m. the next day.
Prohibited purchases. No licensee shall purchase or accept any goods, wares, articles, or things under any of the following circumstances:
Where the seller is less than 18 years of age;
A pawnbroker may not accept a pledge from any person who is under the age of 16 (N.J.S.A. 45:22-31);
Where the seller is intoxicated, defined as a seller whose mental or physical functioning is substantially impaired as a result of the use of alcohol or drugs;
Where the seller fails to present a valid New Jersey driver's license or at least two forms of identification of which at least one contains the seller's full legal name, date of birth, a photograph or full physical description, and an identification number;
Where the article to be purchased had an original manufacturer's serial number at the time it was new but no longer legibly exhibits said number.
Purchasing, selling or displaying weapons prohibited. No licensee shall deal in, buy or sell, or display in his shop any pistol, Derringer, Bowie knife, dirk or other deadly weapon of like character, capable of being secreted upon the person, unless such licensee shall also possess valid and current licenses or permits as required by applicable federal, state, or local laws, ordinances, rules or regulations.
Pawnbrokers' and secondhand dealers' responsibilities and requirements. Each pawnbroker or secondhand dealer within the Borough of Runnemede shall, upon the purchase of precious metals or secondhand goods from the public, be required to do as follows:
Each pawnbroker or secondhand dealer shall operate or maintain a computer system with internet access and photographic or video capability sufficient for the electronic reporting requirements of this chapter. Any failure or malfunction of such equipment on the part of the licensee shall not exempt the licensee from the below reporting requirements. The licensee shall immediately notify the Police Department of any such failure or malfunction, and shall have such malfunction or failure resolved as soon as is practicable. Failure of the licensee to resolve any failure or malfunction of equipment in a reasonable amount of time will lead to license revocation. The licensee will secure the RAPID system or a comparable system as approved by the Chief of Police.
Record on a numbered receipt the name, address and telephone number of the purchaser; the name, address and telephone number of the seller or sellers; the time and date of the transaction; the net weight in terms of pounds Troy, pennyweight (Troy) or kilograms/grams of the precious metals; and the fineness in terms of karats for gold, sterling for coin or silver, in accordance with N.J.S.A. 51:5-1 et seq. and 51:6-1 et seq. This information is to be documented through the use of the electronic database software system as designated by the Chief of Police. These records shall be subject to the inspection of any authorized police officer of the Borough of Runnemede. The licensee will secure the RAPID system or a comparable system as approved by the Chief of Police.
Through the use of applicably required computer equipment, and using the electronic format approved by the Chief of Police, enter all transactions into the electronic database within 48 hours from the date of purchase. The information contained in Subsection B above, plus the following:
The physical description of the seller.
The receipt number.
The full description of the item or items purchased, including but not limited to marks, numbers, dates, sizes, shapes, initials and monograms.
The price paid for said item.
The form must be signed by the seller and initialed by the clerk who made the transaction.
The precious metals are to be made available for inspection by the Chief of Police of the Borough of Runnemede or his/her designated representative for a period of 10 days from the date of the information required above is received by the Chief of Police or his/her designated representative, on the approved form. The precious metals shall remain in the same condition as when purchased and shall not be changed, modified, melted or disposed of by the purchaser until the ten-day period has expired. During this ten-day period, the precious metals shall be placed in public view at the purchaser's place of business. If the property is such that it would create a hardship on the pawnbroker by holding the precious metals for such period, the pawnbroker may present the property to the Chief of Police or his representative in order that it may be photographed and, if deemed necessary by the Chief of Police or his/her designated representative, an investigation be implemented. The Chief of Police or his/her designated representative has the authority to grant the pawnbroker a waiver of the requirement under this section.
In addition to the information required to be reported above, each pawnbroker or secondhand dealer doing business in the Borough of Runnemede shall obtain a photographic image of a photo ID card of the seller, sufficiently clear to allow the information on the ID to be read. The photo ID must be a currently valid (not expired) card issued by a governmental entity of the United States, and must include the pawn/seller's first and last name, current address, date of birth and physical descriptors. In the event that the card is valid but does not contain the seller's current address, the licensee must separately record and report the current address.
Any property exchanged in a transaction shall be digitally photographed and reported as required by the Chief of Police, unless such property bears a valid and unique serial number that is permanently inscribed on the property. It is unlawful to do business with persons failing to supply required information.
It is unlawful to receive or purchase in any manner any goods or articles or make any advance or loan whatever on the same if the person or persons pawning, pledging, depositing or selling the same shall refuse to make known his, her, or their names, to submit to a general description, or shall refuse to make known the name or names of the person or persons for whom the same were pawned, pledged, deposited or sold, or knowingly make any false entry of any matter or thing required to be made in said book or cause or permit the same to be made.
Dealer payment to sellers in cash shall be limited to two transactions during a seven-day period for the same seller. The seven-day period will commence on the day of the first transaction and end seven days after the transaction, i.e., if transaction number one occurs on a Monday, the seven-day period ends on Sunday. Furthermore, no cash payments shall be made to the same sellers who make more than five transactions in any given thirty-day period. Sellers making transactions over the number of proscribed weekly and monthly periods will be paid by the dealer by means of a bank check drawn from the dealer's business account.
It shall be the requisite duty of every dealer, and every person in the dealer's employ, to admit to the premises during business hours any member of the Borough of Runnemede Police Department to examine any database, book, ledger, or any other record on the premises relating to the purchase of precious metals from the public, as well as articles purchased or received, and to take possession of any article known by the police officer or official to be missing or to have been stolen, or where the officer or official has probable cause to believe the article is missing or stolen.
Non-applicability. This chapter shall not apply to purchases made by jewelers or other pawnbrokers from wholesalers or other suppliers, but shall only apply to those purchases made from the public or other retail purchases. The pawnbroker shall keep records of all wholesale purchases for a period of six months from the date of the purchase, which records shall be opened to investigation by the Borough of Runnemede Police Department.
Secondhand watches to be clearly marked. Any person or business entity engaged in the business of buying or selling watches, or any agent or servant thereof, who may sell or exchange, or offer for sale or exchange, or display with the intent to sell or exchange any secondhand watch, shall affix and keep affixed to the same a tag with the word "secondhand" clearly and legibly written or printed thereon, and the said tag shall be placed that the word "secondhand" shall be in plain sight at all times.
Special invoice for secondhand watches.
Any person or business entity engaged in the business of buying or selling watches, or any agent or servant thereof, who may sell a secondhand watch or in any other way pass title thereto shall deliver to the vendee a written invoice bearing the words "secondhand watch" in bold letters, larger than any other written matter upon said invoice, which said invoice shall contain the following:
The name and address of the vendor;
The name and address of the vendee;
The date of the sale;
The name of the watch or its makers;
The serial numbers, if any; and
Any other distinguishing numbers or identification marks upon its case and movement; or, if the serial numbers or other distinguishing numbers or identification numbers or identification marks shall have been erased, defaced, removed, altered or covered, the invoice shall so state.
The vendor shall keep on file a duplicate of said invoice for at least five years from the date of the sale thereof, which shall be open to inspection during all business hours by the Camden County Prosecutor or his/her duly authorized representative.
Advertising secondhand watches. Any pawnbroker, secondhand dealer or other person or business entity or any agent thereof, who may advertise or display in any manner a secondhand watch for sale or exchange shall state clearly in such advertisement or display that said watch is a secondhand watch.
Violation of any provision of this chapter shall, upon conviction thereof, be punished by a minimum fine of $100 or a maximum of $1,000, or by imprisonment for a term not exceeding 90 days, or by a period of community service not exceeding 90 days. Each and every violation shall be considered a separate violation. Every day that a violation continues shall be a separate violation. Each violation shall result in an additional ten-day suspension. Any person who is convicted of violating the provisions of this chapter within one year of the date of the previous violation and who was fined for the previous violation may be sentenced by the court to an additional fee as a repeat offender. The additional fine imposed as a repeat offender shall not be less than the minimum or exceed the maximum fine provided herein, and same shall be calculated separately from the fine imposed for the violation of this chapter. For a third or subsequent violation under this chapter, the mercantile license, pursuant to Chapter 248 of this Code, may be revoked upon notification by Mayor and Council.