[Ord. No. 2017-1596]
The purpose and intent of this Chapter is to assist law enforcement
officials and victims of crime in recovering stolen precious metals
and other secondhand goods by requiring minimum identification, reporting,
maintenance and distribution criteria for licensed dealers in these
goods.
No person shall use, exercise, or carry on the business, trade,
or occupation of the buying, selling, or pawning of precious metals
or other secondhand goods without complying with the requirements
of this Chapter in the exact manner described herein.
[Ord. No. 2017-1596]
Unless specifically defined below, words or phrases used in
this Chapter shall be interpreted so as to give them the meaning they
have in common usage and to give this Chapter its most reasonable
application. For purpose of this Chapter, the following terms shall
have the following meanings indicated:
Shall mean a current valid New Jersey driver's license
or identification card, a current valid photo driver's license
issued by another U.S. state, a valid United States passport, or other
verifiable U.S. government issued identification, which will be recorded
on the receipt by the dealer and subsequently forwarded to the local
police department or request.
Shall mean any person, partnership, limited-liability company,
corporation, or other entity who, either wholly or in part, engages
in or operates any of the following trades or businesses: the buying
for purposes of resale of precious metals, jewelry, or other secondhand
goods as defined herein; pawnbrokers as defined herein; itinerant
businesses as defined herein. For the purposes of this Chapter, transient
buyers, as defined herein, are subject to the same licensing and reporting
requirements as any other dealers.
Shall mean a dealer who conducts business intermittently
within the municipality or at varying locations.
Shall mean the statutory officer whose duties are defined
in N.J.S.A. 40A:9-133 and refers to the Borough Clerk of Keansburg.
Shall mean any person, partnership, association or corporation
lending money on deposit or pledge of personal property, other than
choses in action, securities or printed evidences of indebtedness;
purchasing personal property on condition of selling it back at a
stipulated price; or doing business as furniture storage warehousemen
and lending money on goods, wares or merchandise pledged or deposited
as collateral security.
Shall mean gold, silver, platinum, palladium, and their alloys
as defined in N.J.S.A. 51:5-1 et seq. and N.J.S.A. 51:6-1 et seq.
Shall mean individuals and retail sellers, not to include
wholesale transactions or transactions between other merchants.
Shall mean every transaction conducted between a dealer and
a member of the public in which precious metals, jewelry, or any other
secondhand goods as defined herein are purchased or pawned.
Shall mean used goods, including, but not limited to, antiques,
gold, silver, platinum or other precious metals, jewelry, coins, gemstones,
gift cards, any tools, telephones, typewriters, word processors, GPS
devices, computers, computer hardware and software, television sets,
radios, record or stereo sets, electronic devices, musical instruments,
sporting goods, automotive equipment, collectibles, DVDs, CDs, and
other electronically recorded material, firearms, cameras and camera
equipment, video equipment, furniture, clothing, and other valuable
articles. For the purposes of this Chapter, secondhand goods shall
not include goods transacted in the following manner:
Judicial sales or sales by executors or administrators;
Occasional or auction sales of household goods sold from private
homes
Auctions of real estate;
The occasional sale, purchase, or exchange of coins or stamps
by a person at his or her permanent residence who is engaged in the
hobby of collecting coins or stamps and who does not solicit the sale,
purchase, or exchange of such coins or stamps to or from the general
public by billboard, sign, handbill, newspaper, magazine, radio, television,
or other form of printed or electronic advertising.
Shall mean a member of the public who sells or pawns used
goods such as precious metal, jewelry, or other secondhand goods to
a dealer.
Shall mean a dealer, as defined herein, who has not been
in a registered retail business continuously for at least six months
at any address in the municipality where the dealer is required to
register or who intends to close out or discontinue all retail business
within six months.
[Ord. No. 2017-1596]
a.
No person, partnership, limited-liability company, corporation, or
other entity shall engage in the business of buying, selling, or pawning
of precious metals or other secondhand goods, as defined above, within
the jurisdiction of the municipality, without having first obtained
a license therefor from the Municipal Clerk, which license shall bear
a number issued by the Municipal Clerk.
b.
The application for a license shall set forth the name, date of birth,
and address of the dealer, whether or not he or she is a citizen of
the United States, and whether or not he or she has ever been convicted
of any crime(s), disorderly persons offense(s), or municipal ordinance
violation(s), and the date(s) thereof.
c.
Advertising in any print or electronic media or by sign that any of those articles or secondhand goods referred to in Section 28-2 above are being bought in any location within the municipality shall constitute engaging in business as a dealer of secondhand goods for purposes of this Chapter. No person, partnership, limited-liability company, corporation or other entity shall place or cause to be placed any advertisement for purchase of such articles or goods without stating in the advertising the license number issued to a person or entity by the municipality. In any advertisement in electronic media, the license number shall be visually and/or audibly stated. Failure to state or indicate the license number shall be a violation of the Chapter and shall be subject to the penalties established in Section 28-9.
d.
Licenses may not operate at any location other than site specified in the license and shall not be transferred. Licensees operating at multiple locations must have each location separately licensed. Itinerant businesses and transient buyers, as defined in Section 28-2 above, are not eligible for licensure.
[Ord. No. 2017-1596]
a.
Upon receipt of an application completed pursuant to this Chapter,
the Municipal Clerk shall refer such application to the Chief of Police,
or the Chief of Police's designee, who shall make an investigation
of the prospective licensee, pursuant to this Chapter for the purpose
of determining the suitability of the applicant for licensing. The
investigation shall include, but shall not be limited to, the following:
1.
The experience of the applicant in the business of purchase and sale of those articles or goods referred to in Section 28-2 above, although nothing in this section shall be constituted to warrant denial of a license solely on the basis of lack of experience.
2.
Any criminal record of the applicant including any past convictions
for any crime(s), disorderly persons offense(s), or municipal ordinance
violation(s) within this or any other jurisdiction. The Chief of Police
or his designee shall, as part of the initial application process
and annual renewals, require fingerprint criminal background checks
through the Federal Bureau of Investigation, Criminal Justice Information
Services Division, for the applicant and all owners and employees,
which may require payment of additional fees by the applicant.
3.
The type of operation contemplated to be conducted by the applicant,
particularly whether the business is to be operated from a fixed location,
whether it is to be conducted from a location primarily devoted to
the purchase and sale of precious metal or other secondhand goods,
and other factors bearing on whether the licensed business will be
of a fixed and permanent nature.
b.
The Chief of Police shall complete any investigation pursuant to
this Chapter within 45 days of the submission of the application to
the Municipal Clerk, fully completed by the applicant. If a criminal
record check has been requested within the forty-five-day period and
has not been received by the Chief of Police within that period, the
Chief of Police may, if all other factors are satisfactory, recommend
a conditional issuance of the license subject to the finding regarding
criminal record.
c.
The Chief of Police shall, upon completion of the investigation,
recommend granting or denying of the license to the Municipal Clerk,
who shall grant or deny the license. Any recommendation of the Chief
of Police shall be in writing, and, in the case of a recommendation
of denial, shall state fully and specifically the reasons for said
recommendation. If the Municipal Clerk accepts the recommendation
of the Chief of Police to deny any license, the applicant shall be
notified in writing within 10 days of such denial and the Clerk shall
forward to the applicant a statement of the reason or reasons for
such denial.
d.
Grounds for recommending denial of license may include reliable information indicating that the applicant has in the past engaged in fraudulent or deceptive business practices in a business identical to or similar to a dealer in secondhand goods. A license may be denied if the investigation reveals a conviction of the applicant or any of its principal officers or employees of any crime(s), disorderly person offense(s) in which deceit or misrepresentation is an element or any conviction of any crime(s), disorderly persons offense(s) involving theft or the receiving of stolen goods, regardless of whether the applicant was a principal, accessory before the fact, accessory after the fact, or a co-conspirator, or any prior municipal ordinance violation(s) by the applicant or any of its principal officers or employees in this or any other jurisdiction. A license may be denied if the applicant fails to demonstrate an ability to satisfactorily comply with the electronic reporting requirements specified in Section 28-5, the retention and inspection requirements of Section 28-6, or any other portion of this Chapter. Upon receipt of the recommendation of the Chief of Police, the Municipal Clerk shall issue or deny the license accordingly, contingent upon the receipt of a bond as required by Section 28-7 of this Chapter.
e.
Whenever any application for a permit is denied, the applicant shall
be entitled to a hearing before the Borough Attorney at which time
the applicant shall be permitted to introduce such evidence as may
be deemed relevant to such denial. Any applicant exercising the right
to appeal must file a written notice of appeal with the Municipal
Clerk within 10 days of receiving written notice of denial of a license
to act as a dealer of secondhand goods.
f.
No license shall be assignable by the dealer.
[Ord. No. 2017-1596]
For every reportable transaction between a dealer and the public,
the dealer shall be required to do as follows:
a.
Require of each person selling or pawning precious metals or other secondhand goods acceptable identification as defined above in Section 28-2;
b.
Require each seller to execute a "Declaration of Ownership," which
shall contain the following certification:
1.
"My signature confirms that I am the legal owner of and am legally
authorized to the sell the goods being sold. By signing below, I certify
that I did not obtain and do not possess the identified goods through
unlawful means. I am of the full age of 18 years or older, and the
identification presented is valid and correct."
c.
Record and issue to each person selling or pawning such goods on
a sequentially numbered receipt:
1.
The name, address, and telephone number of the purchaser, including
the clerk or employee of the licensee making the purchase;
2.
The name, address, date of birth, and telephone number of the seller
or sellers;
3.
A photographed recording of the seller's acceptable identification, as set forth in Section 28-2, in a format acceptable to the Chief of Police, along with a physical description of the seller;
4.
A photographed recording of all items sold in a format acceptable
by the Chief of Police. When photographing, all items must be positioned
in a manner that makes them readily and easily identifiable. Items
should not be grouped together when photographing or imaging. Each
item shall have its own photograph;
5.
The receipt number;
6.
A detailed, legible description of the item(s) and the manufacturer
and model of the item(s) if known; in the case of jewelry, the descriptions
must include style, length, color, design, and stones, if any; any
identifying marks, including numbers, dates, sizes, shapes, initials,
names, monograms, social security numbers, or any other information,
which sets apart the particular object from others of like kind;
7.
The price paid for the purchase or pawn of the item(s);
8.
If precious metals, the net weight in terms of pounds Troy, pennyweight
(Troy) or kilogram/grams; fineness in terms of karats for gold, and
sterling or coin for silver, in accordance with N.J.S.A. 51:5-1 et
seq. and N.J.S.A. 51:6-1 et seq.; and
9.
The time and date of the transaction.
d.
The information outlined in paragraph c above must additionally be
electronically documented through the use of an electronic database
system authorized by the Chief of Police. Installation and training
in this software will be made mandatory as of the effective date of
this Chapter and licensing will be conditional upon compliant with
proper use of the system as described herein. These records shall
be subject to the inspection of any authorized police officer or any
sworn law enforcement officer acting in the performance of his or
her duty as set forth in paragraph f below. Through the use of applicably
required computer equipment, and using the electronic format approved
by the Chief of Police, each dealer shall enter all reportable transactions
into the electronic database by the end of the close of business on
the same date as the purchase or receipt of property for pawn or consignment.
The information entered must contain all pertinent information as
outlined in paragraph c above.
e.
In the event of a database failure, or a dealer's computer equipment malfunction, all transaction information is required to be submitted on paper forms approved by the Chief of Police within 24 hours from the date of purchase. In the event that paper forms are used, the dealer is responsible to enter all transaction information set forth in paragraph c above into the database as soon as possible upon the dealer's equipment being repaired or replaced, or the database coming back into service. Failure by the dealer to properly maintain computer equipment in a reasonable fashion, or failure by the dealer to replace faulty computer equipment, may result in the dealer being cited for a violation of this Chapter and subsequently being subject to the penalties for doing so, including revocation of the dealer's license as described in Section 28-6.
f.
It shall be the requisite duty of every dealer, and of every person in the dealer's employ, to admit to the premises during business hours any member of the Keansburg Police Department to examine any database, book, ledger, or any other record on the premises relating to the reportable transactions of precious metals or other secondhand goods, as well as the articles purchased or received and, where necessary, relinquish custody of those articles as provided in Section 28-6.
[Ord. No. 2017-1596]
a.
The precious metals are to be made available for inspection by the
Chief of Police of the Borough of Keansburg and to any other Federal,
State, County or other law enforcement entity for a period of 10 days
from the date the information required above is received by the Chief
of Police 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 dealer
by holding the precious metals for such period, the dealer may present
the property to the Chief of Police in order that it may be photographed
and, if deemed necessary by the Chief of Police, an investigation
be implemented.
b.
In addition to all other reporting requirements, every dealer shall maintain, for at least five years, a paper record of all purchases of precious metals and other secondhand goods in the form prescribed in Section 28-5c.
c.
No dealer shall purchase any item covered by this Chapter from any
person under the age of 18 or in the absence of providing prior notification
of such purchase to the Chief of Police or business designee identifying
the individual from whom such purchase is to be made and the item
to be purchased.
d.
Suspension. The Chief of Police or a designee thereof is hereby empowered to temporarily suspend for cause any dealer's license and rights to operate thereunder. This penalty shall be in addition to any fines and penalties the dealer may incur pursuant to Section 28-9 of this Chapter.
1.
Grounds for Suspension. The following shall constitute grounds for
suspension: violation of any provisions of this Chapter, including,
but not limited to, failure to comply with any training or fees associated
with the electronic database software system in use by the municipality;
violation of any other statute, regulation, or local ordinance; or
any other illegal, improper, or fraudulent activity.
2.
Procedure for Suspension. Upon determination that appropriate grounds
exist and that a suspension is warranted, the Chief of Police or a
designee thereof shall issue a written notice of suspension of license
to the offending dealer and to the Municipal Clerk, which shall set
forth the grounds for the suspension and notify the dealer of his
or her right to appeal pursuant to paragraph g of this section. A
temporary suspension shall issue immediately, pending the outcome
of any appeal taken. Suspended dealers must immediately cease engaging
in the business of purchasing for resale, receiving for pawn, and/or
selling of precious metals and/or other secondhand goods in the municipality
until reinstatement.
3.
Reinstatement. Suspended dealers may be reinstated only when the
grounds leading to the suspension have, in the determination of the
Borough Attorney, been cured, corrected, or appropriately rectified.
e.
Revocation. A license issued under this Chapter may be revoked by the Municipal Clerk upon written recommendation from the Chief of Police or the Chief's designee that the dealer is no longer qualified, capable or competent to comply with the requirements of this Chapter. This penalty shall be in addition to any fines and penalties the dealer may incur under Section 28-9.
1.
Grounds for Revocation. The following shall constitute grounds for
revocation: a third violation under this Chapter; a second violation
under this chapter less than one year after an earlier violation under
this Chapter; conviction for a criminal offense within this or any
jurisdiction; or multiple violations of any other regulations or local
ordinances within this or any jurisdiction.
2.
Procedure for Revocation. Upon a determination that appropriate grounds
exist and that a revocation is warranted, the Chief of Police or the
Chief's designee shall so report to the Municipal Clerk in writing.
A temporary suspension will immediately and automatically issue, if
one is not already in effect, pending the outcome of the charge. The
Borough Attorney shall review the stated grounds for revocation and
shall issue an appropriate disposition of either suspension, revocation,
or reinstatement. If it is determined that revocation is the appropriate
disposition, the grounds therefor shall be set forth in writing in
the form of a notice of revocation, which shall be provided to the
dealer. The notice shall advise the dealer of the right to appeal.
If determined that suspension is the appropriate disposition, the
dealer shall be so notified in writing and shall be advised of the
right to appeal. Following revocation, the dealer must relinquish
his or her license and must immediately and indefinitely cease operating
as a dealer of precious metals or other secondhand goods within the
municipality.
f.
Appeal. Any license holder wishing to appeal a suspension or revocation shall be entitled to a hearing as provided in Section 28-4e. Any applicant exercising the right to appeal must file a written notice of appeal within 10 days of receiving written notice of revocation or suspension of license.
g.
A dealer shall have the right to change the location of the licensed
business, provided that he or she notifies the Municipal Clerk, in
writing, of the street address of said new location.
[Ord. No. 2017-1596]
Each dealer covered under this Chapter shall deliver a bond
to the Municipal Clerk executed by the applicant as principal and
executed by a surety company authorized to do business under the laws
of the State of New Jersey as surety. The bond shall be subject to
review and approval by the Borough Attorney, as defined in N.J.S.A.
40A:9-139, and shall be in the penal sum of $10,000, conditioned for
the due and proper observance of and compliance with the provisions
and requirements of all ordinances of the municipality in force or
which may be adopted respecting the conduct of this business and conditioned
also that the bond shall be and remain for the benefit of any person
or persons who shall have received judgment against the dealer license
under this Chapter, which damage shall be established by a judgment
of a court of proper jurisdiction. Said bond shall contain the following
language: "The obligation of this bond shall, in addition to the Borough
of Keansburg, be and remain for the benefit of any person who shall
obtain a judgment against obligor as a result of damage sustained
in operation pursuant to any licensee granted under this Chapter."
Said bond shall be kept for a minimum of one year from the date of
issuance of license and must be renewed annually along with the license.
[Ord. No. 2017-1596]
a.
A nonrefundable fee for initial application and license for a pawnbroker or a dealer in precious metals or other secondhand goods, as covered under this Chapter, is $200. The annual renewal fee for a license is $100. These fees are separate from and in addition to any fees the dealer must pay in relation to the mandatory electronic database system designated by the Chief of Police, as provided by Section 28-5d. Payments are to be made in the manner directed by the Municipal Clerk.
b.
Licenses issued pursuant to this Chapter are valid for one year,
from January 1 through December 31. Initial applications and applications
for renewal must be submitted no later than October 1.
[Ord. No. 2017-1596]
Violation of any provision of this Chapter by any dealer shall, upon conviction thereof, be punished by a fine not in excess of the limitations of N.J.S.A. 40:49-5 or by a term of imprisonment or a period of community service not exceeding 90 days in addition to a suspension or revocation of operating license as provided in Section 28-6d and e above. Each and every violation shall be considered a separate violation. Each violation shall result in an additional suspension period. Any person who is found guilty of violating the provisions of this Chapter within one year of the date of a previous violation and who was fined for the previous violation may be sentenced by a court of appropriate jurisdiction to an additional fine as a repeat offender and, in addition, may be subject to revocation proceedings as provided by Section 28-6e. 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.
[Ord. No. 2017-1596]
Effective August 1, 2017, no existing licensee may continue
to operate without having been licensed pursuant to this Chapter.
Nothing contained in this Chapter is intended to replace any
preexisting statutory requirements governing pawnbrokers, as in N.J.S.A.
45:22-1 et seq., the sale of precious metals as in N.J.S.A. 51:6A-1
et seq., the sale of secondhand jewelry as in N.J.S.A. 2C:21-36 et
seq., or any other statutory provision regarding any subject matter
discussed herein.
