A. 
As used in this article, the following terms shall have the meanings indicated:
PAWNBROKER
A person, corporation, or member or members of a copartnership or firm, who loans money on deposit, or pledge of personal property, or other valuable thing, other than securities or printed evidence of indebtedness, or who deals in the purchasing of personal property or other valuable thing on condition of selling the same back again at a stipulated price.
PRINCIPAL OR PRIMARY BUSINESS
More than 50% of the gross revenue of the business is derived from the purchasing, storing, selling, exchanging and receiving of secondhand goods.
SECONDHAND DEALER
Any person, corporation, or member or members of a copartnership or firm or other entity who engages in the principal or primary business of purchasing, storing, selling, exchanging and receiving secondhand goods.
SECONDHAND GOODS
Any goods, wares, merchandise or other personal property acquired or purchased after having been acquired at retail and used by another except as excluded herein. Such term includes, but is not limited to, appliances and radios, cameras, televisions, videocassette players and recorders, compact discs, digital video disks, CD and DVD players and recorders, software for computer games, computer or video games and computer or video gaming equipment, tools, guns, jewelry, musical instruments, sporting equipment, bicycles, lawn mowers and lawn equipment, snowblowers, typewriters, computers, and audio equipment such as home and vehicle stereos and speakers. Secondhand goods does not include new goods, clothing, household items, items normally handled by a recycling dealer as set forth in § 24-16 et seq. of the Kalamazoo City Code, and it does not include antiques or household furniture, books, magazines, trading cards, and tapestries.
A. 
The City Clerk is designated and authorized to issue and revoke licenses for persons, corporations or firms to carry on the business of a pawnbroker or secondhand dealer pursuant to MCLA § 446.201 et seq., as amended, and MCLA § 445.401 et seq., as amended. A pawnbroker or secondhand dealer license shall not be issued to any person, corporation, firm or other entity that has failed to pay personal property taxes and real property taxes assessed for which penalties or interest have begun to accrue, or failed to pay other debts owing to the City.
B. 
No person, corporation, or member or members of a copartnership or firm or other entity shall engage in the business of pawnbroker or secondhand dealer without first obtaining a license from the City Clerk. The license shall be valid for a period of one year commencing April 1 and ending March 30, unless suspended or revoked for cause. The license shall be renewable upon paying the annual fee. No license issued hereunder shall be transferable. For licenses of less than one year, the City Clerk shall designate on the license the time period that the license is in effect.
C. 
The license fee shall be as set from time to time by the City Commission by motion or resolution. When annual licenses are applied for subsequent to November 1 of any year, the license fee shall be 1/2 of the annual fee for the balance of the license year. The City Clerk shall collect 1/2 of the license fee when the applicant initially applies. If the application is approved, the remainder of the license fee shall be paid before the license is issued. If the application is rejected, the portion of the fee paid shall be retained by the City to cover processing costs. For a pawnbroker license, a bond shall be provided as set forth in MCLA § 446.201 et seq., as amended.
D. 
The City Clerk shall promptly provide a list of all pawnbroker and secondhand dealer licenses issued under this article to the Kalamazoo Department of Public Safety unless informed otherwise by the Kalamazoo Department of Public Safety.
E. 
All persons obtaining a pawnbroker or secondhand dealer license shall place the license conspicuously in full public view, in the room or structure in which the licensed occupation or act is being performed, as directed by the City Clerk.
F. 
A person must comply with the requirements of each state statute and City ordinance relevant to the business being conducted. For example, licensure as a precious metal and gem dealer does not exempt a person from obtaining a license as a pawnbroker or a secondhand dealer. Licensure as a secondhand dealer does not exempt a person from obtaining a license as a pawnbroker or a precious metal and gem dealer. Licensure as a pawnbroker does not exempt a person from obtaining a license as a secondhand dealer or a precious metal and gem dealer.
A. 
Application for a pawnbroker or secondhand dealer license shall be made in writing to the City Clerk, who is authorized to create application forms and to receive and process applications and to thereafter grant, deny, suspend or revoke said licenses as set forth in this article. Applications shall be on forms supplied by and to be filed with the City Clerk. Such application shall be signed and dated by the applicant or, if the applicant is not an individual, by an authorized representative. The applicant must prove his/her identification by means of a Michigan driver's license or Michigan identification card, or by similar identification from another state, or he/she must otherwise satisfy the City Clerk of his/her identity. The application shall contain the following minimum information, plus any other information deemed necessary by the City Clerk:
(1) 
The name and any alias used, and address and telephone number of the applicant and all employees, officers, partners or agents of the applicant;
(2) 
The location where the business is to be carried on plus any subsidiary offices and a brief description of the items to be sold;
(3) 
The applicant's criminal record, if any and, if the applicant is not an individual, the criminal record, if any, of the partners or officers of the corporation;
(4) 
The criminal record, if any, of any employees of the applicant;
(5) 
The applicant's prior experience as a secondhand dealer or pawnbroker;
(6) 
An authorization for the City Clerk and/or the Department of Public Safety to carry out a background investigation on the applicant and all employees, officers, partners or agents of the applicant;
(7) 
A statement as to whether the applicant has ever had any licenses required by the City of Kalamazoo or any other governmental entity revoked, suspended or denied and the reasons for said action.
(8) 
A statement that the information provided is true and accurate and that, if a license is granted, the applicant will abide by all applicable ordinances and statutes.
B. 
All licenses are subject to the following conditions, which shall be noted on the application form:
(1) 
The applicant shall permit inspection of the licensed premises and/or activity at reasonable times by any representative of the City of Kalamazoo;
(2) 
The applicant shall not engage in the business of a pawnbroker or secondhand dealer at any time after the license has expired, without having been reissued, or at any time when the license is suspended or revoked.
(3) 
No license shall be issued or renewed unless and until the applicant and any and all employees, officers, partners or agents of the applicant shall, if deemed necessary by the Kalamazoo Department of Public Safety, submit to being fingerprinted and photographed as part of the background investigation.
(4) 
The license is subject to suspension or revocation pursuant to §§ 24-7 and 24-8 of the City Code.
C. 
The City Clerk shall issue a license to the applicant upon payment of the license fee, and if the City Clerk is satisfied that the applicant has met and will continue to meet the requirements of this chapter, and if the City Clerk is satisfied that the applicant's character and business history are satisfactory.
D. 
The City Clerk shall deny an application for a pawnbroker or secondhand dealer license if the applicant has failed to pay real or personal property taxes assessed for which penalties or interest have begun to accrue or failed to pay other debts owing to the City of Kalamazoo. The City Clerk may deny an application for a pawnbroker or secondhand dealer license if the City Clerk is not satisfied that the applicant has met and will continue to meet the requirements of this chapter, or if the City Clerk is not satisfied that the applicant's character and business history is satisfactory. The City Clerk shall deny an application for a pawnbroker or secondhand dealer license if the applicant or any employees, officers, partners or agents of the dealer have been convicted within the last 10 years of any violation of this chapter or Chapter 25 or any similar ordinance in another jurisdiction, or convicted of any crime involving theft, dishonesty, receipt of stolen property or embezzlement within the last 10 years, or convicted of any felony within the last five years.
E. 
If the City Clerk denies the issuance of a license or a renewal thereof, a notice of denial including the reasons for the denial shall be mailed first class to the applicant. If the application for a license has been denied, the applicant may appeal the denial by requesting a hearing pursuant to § 24-8 or may reapply at any time by submitting a new application and fee. The notice of denial shall provide that the applicant may request a hearing within 10 days to appeal the denial pursuant to § 24-8.
A. 
All pawnbrokers and all secondhand dealers shall keep records of the identity of all persons with whom he or she does business and records of all property coming into his or her possession as required by MCLA §§ 446.205, 445.404 and 445.405. If not otherwise required by the applicable statute, the records shall also include:
(1) 
A photo of the property;
(2) 
A description of the property to include the make, model, and serial number if available and documentation of any unique identifiers such as initials or names that might be on the property;
(3) 
The amount paid for the item;
(4) 
The name, date of birth, driver's license number or state of Michigan personal identification card number, and street and house number of the customer; and
(5) 
The right thumbprint of the individual trading in, selling, or pawning the item. If it is not possible for the individual to provide his or her right thumbprint, then another specifically designated fingerprint shall be provided.
B. 
Such records, the place where the secondhand dealer's or pawnbroker's business is carried on and all goods in that place of business or in control of the pawnbroker or secondhand dealer are subject to examination at any time by the City Attorney, the Kalamazoo Department of Public Safety, the City Clerk, the State Police, and the Kalamazoo County Prosecuting Attorney.
A. 
The information required in § 24-4A must be provided within 24 hours after the property is received using the website or program specified by the Kalamazoo Department of Public Safety. Information and assistance concerning the website or program shall be provided by the Kalamazoo Department of Public Safety.
B. 
Violation of this section shall result in a municipal civil infraction with a fine of up to $500.
A. 
If an officer of the Kalamazoo Department of Public Safety has probable cause to believe that property in the possession of a pawnbroker is misappropriated, or if a person files an official police report alleging misappropriation of property, the officer may place a written hold order on the property. All of the following apply to a written hold order under this subsection:
(1) 
The hold order shall specify a holding period. The length of the holding period shall not exceed 90 days, unless extended by court order.
(2) 
The officer who placed the hold order may rescind it in writing.
(3) 
An officer may place only one hold order on a particular item of property.
(4) 
The hold order must include all of the following information:
(a) 
The name and mailing address of the pawnbroker.
(b) 
The name, title, and identification number of the officer who placed the hold order and, if applicable, the number assigned to the claim or report relating to the property.
(c) 
A complete description of the property in the possession of the pawnbroker, including model number and serial number, if applicable.
(d) 
The name of the person that reported that the property was misappropriated, unless otherwise prohibited by law.
(e) 
The expiration date of the holding period specified under Subsection A(4)(a).
B. 
The officer must sign and date a copy of a written hold order he or she placed on an item of property under Subsection A as evidence that he or she placed the hold order and of the date the holding period specified under Subsection A(1) begins.
C. 
On the 10th day after a hold order placed under Subsection A expires, if the pawnbroker has not received notice from a court that it has granted an extension of the hold order on the property, title to the property vests in and is considered conveyed by operation of law to the pawnbroker, free of any liability for claims but subject to any restrictions contained in the pawn transaction contract and subject to the provisions of this act.
D. 
A court shall not grant an extension of a hold order placed on property under Subsection A unless a person that claims an interest in the property that is adverse to the pawnbroker or pawner has filed a report with a law enforcement agency and provided a copy of the report to the court and a copy of that report accompanies the notice from the court that it granted the extension described in Subsection C.
E. 
Except as provided in Subsection F, a pawnbroker shall not release or dispose of property that is subject to a hold order under this section except pursuant to a court order, a written release from the officer, or the expiration of the holding period of the hold order described in Subsection A(1).
F. 
While a hold order is in effect, on request, the pawnbroker must release the property that is subject to the hold order to the custody of the officer that placed the hold order for use in a criminal investigation or proceeding related to the ownership claim. The release of the property to the custody of the officer is not considered a waiver or release of the pawnbroker's property rights in, interest in, or lien on the property.
G. 
An officer or any other person that obtains custody of property under this section shall not deliver the property to any person that claims ownership of the property unless both of the following are met:
(1) 
The property is delivered after a hearing at which a court determines the merits of the claims to the property.
(2) 
If the court finds against the pawnbroker, the court orders the pawner or seller of the item that was pawned or pledged to make restitution to the pawnbroker for all money that the pawnbroker advanced, and the total interest and charges accrued since the pawnbroker first advanced that money, together with reasonable attorney fees and costs that the pawnbroker incurred in defending the action related to the disputed property.
H. 
If the court, after a hearing described in Subsection G(1) finds in favor of the pawnbroker, the property must be returned to the pawnbroker.
I. 
A pawnbroker is not liable to any person for any property that is seized from the pawnbroker based on the pawnbroker's inability to return the property to that person because of the seizure.
A. 
Any pawnbroker's or secondhand dealer's license issued pursuant to this article may be suspended by the City Clerk, which shall be deemed a suspension with intent to revoke. The suspension with intent to revoke shall automatically become a revocation of the license unless the pawnbroker or secondhand dealer requests an appeal by requesting a hearing within 10 days pursuant to § 24-8 of the Kalamazoo City Code. If the City Clerk issues a notice of suspension with intent to revoke to a pawnbroker or secondhand dealer, the pawnbroker or secondhand dealer may not thereafter engage in the business of a pawnbroker or secondhand dealer until the license is reinstated. Such notice shall provide the reasons for the suspension with intent to revoke and shall inform the pawnbroker or secondhand dealer that the suspension with intent to revoke shall become a revocation of the license unless a hearing is requested within 10 days pursuant to § 24-8 of the Kalamazoo City Code. The notice shall also provide that during the suspension or revocation the license holder may not engage in the business of a pawnbroker or secondhand dealer until the license is reinstated or reissued. The notice shall also provide that if the license is revoked, that the license may not be reissued or reinstated until a period of one year has expired and the applicant has fulfilled all the requirements of this article, including the submission of a new application and application fee. The City Clerk is authorized to issue a notice of suspension with intent to revoke if any of the following exist:
(1) 
Violations of the license conditions or any requirements of this article, regardless of whether a conviction results;
(2) 
Violations of other applicable federal, state or local laws, ordinances, rules or regulations, regardless of whether a conviction results;
(3) 
Acts or omissions which are unlawful, fraudulent or deceptive or beyond and contrary to the scope of the license granted, regardless of whether a conviction results;
(4) 
That the pawnbroker's or secondhand dealer's business has been abandoned;
(5) 
That statements made on the application were false and misleading;
(6) 
Failure to pay personal property taxes and real property taxes assessed against the dealer for which penalties or interest have begun to accrue or failure to pay other debts owing to the City;
(7) 
That the pawnbroker or secondhand dealer or any employees, officers, partners or agents of the pawnbroker or secondhand dealer have been convicted of any crime involving theft, dishonesty, receipt of stolen property or embezzlement within the last 10 years, or convicted of any felony within the last five years. The license shall not be subject to suspension if the conviction of an employee, officer, partner or agent of the pawnbroker or secondhand dealer for such a crime does not relate to the pawnbroker or secondhand dealer's business, provided the individual is no longer associated with the pawnbroker or secondhand dealer's business.
B. 
A license which has been suspended pursuant to this section by the City Clerk may subsequently be reinstated by the City Clerk upon a showing to the City Clerk's satisfaction that the problems giving rise to the suspension have been rectified.
C. 
A license which has been revoked pursuant to this article may not be reissued or reinstated until a period of one year has expired and the applicant has fulfilled all the requirements of this article, including the submission of a new application and application fee.
A. 
If the City Clerk has refused to issue a license or if a license is suspended with intent to revoke under this article, the aggrieved person is entitled to a de novo hearing by filing an appeal in writing with the City Manager within 10 days of the action by the City Clerk. The notice of appeal need not be on any particular form. The hearing shall be heard before the City Manager or his/her designee. The hearing shall commence at a time and place to be set by the City Manager's office, but in any event within 20 days of the filing of the appeal. The City Manager's office shall provide notice of the hearing to the aggrieved party, the City Clerk and the City Attorney.
B. 
The City of Kalamazoo shall be represented at the hearing by the City Attorney or his/her designee. The aggrieved party may be represented by counsel. The hearing officer shall hear and receive appropriate testimony and material evidence from each party, giving full and fair consideration to all the evidence presented. Both parties shall be entitled to submit evidence, to cross-examine witnesses, and to make arguments concerning legal and factual issues. The Michigan Rules of Evidence shall be followed as far as practicable, but the hearing officer may admit and give probative effect to evidence of a type commonly relied upon by reasonably prudent people in the conduct of their affairs, and notice may be taken of facts within the general knowledge of the community. The hearing officer may limit arguments or the examination of witnesses if, in the hearing officer's discretion, the evidence or argument is irrelevant, repetitive or otherwise improper in the same manner that a judge could. The hearing officer shall ensure that the hearing is recorded unless both parties stipulate otherwise.
C. 
After completion of the hearing, the hearing officer shall issue a written opinion setting forth findings of fact and the decision. If the hearing relates to a suspension with intent to revoke, the decision shall be issued within seven days. If the hearing relates to the failure of the City Clerk to issue a license, the decision shall be issued within 14 days.
D. 
Any party aggrieved by the decision of the hearing officer may file leave to appeal said decision with the Kalamazoo County Circuit Court within 20 days of the decision of the hearing officer.
A. 
Except as otherwise provided, any licensee, dealer, employee, person or entity who violates this article shall be guilty of a misdemeanor punishable by imprisonment for not more than 90 days or a fine of not more than $500, or both.
B. 
Prosecutions for misdemeanor violations of this article may be commenced by summons and complaint or the issuance of an appearance ticket by the Kalamazoo Department of Public Safety. Further, the City of Kalamazoo may commence an action in Circuit Court for injunctive or other equitable or legal relief to prevent a continuing violation of this article.