[Ord. No. 3630, 2-21-2023]
This Chapter shall be known as the "Pawnshop and Small Loan Establishment Regulations" and may be cited as such.
Editor's Note: Former Ch. 630, Pawnbrokers and Small Loan Establishments, was amended in its entirety by Ord. No. 3630. Prior history includes Ord. No. 2806 and Ord. No. 3329.
[Ord. No. 3630, 2-21-2023]
A.
The intent of this Chapter is to regulate pawnshops and small loan establishments and their business practices in order to protect and promote public safety and welfare. This will be accomplished by:
1.
Requiring a clean, healthy and safe environment in which business may be conducted.
2.
Promoting professionalism and prohibiting illegal acts.
3.
Requiring insurance coverage.
4.
Enabling authorities to collect information that will assist Law Enforcement officials with investigations.
5.
Providing an annual license fee to partially cover the expenses associated with the background investigation and review and processing of reports.
6.
Providing geographic limitations designed to preserve the value of the property throughout the City.
7.
Providing geographic limitations designed to protect the character of residential and commercial areas.
[Ord. No. 3630, 2-21-2023]
A.
Every pawnshop and small loan establishment shall conform to the requirements of this Chapter, irrespective of when such pawnshop or small loan establishment started business within the City limits unless otherwise allowed for in these regulations.
B.
Any pawnshop or small loan establishment existing prior to the adoption of this Chapter shall be considered non-conforming and shall be exempt from Section 405.525(C)(11)(e) (signage) and Section 405.525(C)(11)(a) and (b)(geographic limitations) of this Chapter so long as the pawnshop or small loan establishment or accompanying signage is not expanded or discontinued for more than ninety (90) days.
[Ord. No. 3677, 12-4-2023]
[Ord. No. 3630, 2-21-2023]
In any case where a provision of this Chapter is found to be in conflict with a provision of any other ordinance or other legislation of the City existing on the effective date of this Chapter, the provision which establishes the higher standard for the promotion and protection of the safety, welfare and health of the people shall prevail. If any part of this Chapter should be declared invalid for any reason, such decisions shall not affect the remaining portions of this Chapter.
[Ord. No. 3630, 2-21-2023]
For the purpose of this Chapter, the following words and phrases shall have the following interpretation and/or meanings:
Those who sell relics or objects of an earlier period which are considered valuable and the value of which is based at least in part on age.
Any person engaged in the business of lending money on the security of pledged goods or engaged in the business of purchasing tangible personal property on the condition that it may be redeemed or repurchased by the seller for a fixed price within a fixed period of time.
The location at which or premises in which a pawnbroker conducts business.
Any individual, partnership, corporation, joint venture, trust, association or any other legal entity however organized.
Tangible personal property which is deposited or otherwise actually delivered into possession of a pawnbroker in the course of his/her business in connection with a pawn transaction.
Every loan of money made in this State, the payment of which is secured by a security interest in tangible personal property which is physically delivered into the hands of the lender at the time of the making of the loan and which is to be retained by the lender while the loan is a subsisting obligation.
The location at which or premises in which secured personal credit loans are granted.
The fair market value of the article at the time and place of the acquisition of the article by the dealer or, where no reasonable monetary value can be ascertained, the cost of replacement of the article. It is expressly provided that value, as used in this Chapter, shall not be determined by the cost of the article as paid by the dealer.
[Ord. No. 3630, 2-21-2023]
A.
It shall be unlawful for any person within the City limits to act as agent for, cause the solicitation of, advertise or promote or participate directly or indirectly in the operation of a pawnshop or small loan establishment without first obtaining a business license issued by the City. No such license shall be issued unless the pawnshop, small loan establishment or any person engaged in the activity of such establishment fully complies with the provisions of this Chapter, regardless of the location of such establishment or place where such activity is conducted.
B.
It shall be further unlawful for any person within the City limits to participate directly or indirectly in or for the operation of business activity under a different name or designation than those herein specified for the purpose of carrying out activity or activities defined in this Chapter.
[Ord. No. 3630, 2-21-2023]
A.
No person shall establish a pawnshop or small loan establishment within the City limits of Harrisonville, Missouri, without obtaining a pawnshop/small loan establishment license. The annual pawnshop or small loan establishment license fee shall be as established in the City's Comprehensive Schedule of Fees.[1]
[Ord. No. 3650, 5-1-2023]
[1]
Editor's Note: The Comprehensive Schedule of Fees is on file in the City offices.
B.
The applicant must have net assets of at least fifty thousand dollars ($50,000.00) readily available for the use in conducting business as a pawnshop or small loan establishment. If the City is unable to verify that the applicant meets the net assets required, the applicant must present a finding, including the presentation of a current balance sheet, by an independent certified public accountant that the accountant has reviewed the books and records of the applicant and the applicant meets the net assets requirement of this Chapter.
C.
No pawnshop or small loan establishment business owner may have a felony or misdemeanor conviction which directly relates to the duties and responsibilities of the occupation of pawnbrokers or otherwise makes the applicant presently unfit to own a pawnshop or small loan establishment. A Missouri State Highway Patrol request for criminal record check form shall be filled out by the applicant in its entirety and submitted to the City with the application material.
D.
No employee of a pawnshop or small loan establishment may have a felony or misdemeanor conviction which directly relates to the duties and responsibilities of the occupation or otherwise makes the applicant presently unfit to run or be employed in a pawnshop or small loan establishment. A Missouri State Highway Patrol request for criminal record check form shall be filled out by the applicant in its entirety and submitted to the City prior to employment.
E.
Every pawnshop or small loan establishment owner to whom a license is granted to carry out a pawnshop or small loan business in Harrisonville shall enter into a bond to the City, with good and sufficient security to be approved by the City Administrator, in the sum of five thousand dollars ($5,000.00) conditioned for the due observance of this Chapter and all ordinances that shall be passed or be enforced regarding pawnshop or small loan establishment owners at any time during the continuance of any such license.
[Ord. No. 3630, 2-21-2023]
A.
No pawnshop or small loan establishment shall expose for sale or sell or dispose of any article or articles within seven (7) days of the time of purchasing, except when redeemed by the owner.
B.
No gold, silver, diamonds or other precious or semi-precious gems or metals received shall be removed from the place of business, recut or melted within seven (7) days after receipt thereof, except when redeemed by the owner.
C.
In case the person obtaining the loan fails to pay the interest or principal when due, the pawnshop or small loan establishment shall not sell the article pawned with him/her as security for such loan until the expiration of sixty (60) days from the date of such failure. The person failing may at any time within the sixty (60) days redeem the article if he/she pays the full amount of the principal and interest due at the date of such redemption according to the terms of the contract. If the person obtaining the loan fails to redeem the article within sixty (60) days, that person shall thereby forfeit all right, title and interest in such article to such pawnbroker who then acquires and possess an absolute right in and to then hold and dispose of as his/her own property.
[Ord. No. 3630, 2-21-2023]
A.
Each pawnshop or small loan establishment shall keep consistent and adequate books and records of purchases relating to the licensee's transactions. Said books and records shall be preserved for a period of at least seven (7) years from the date of last transaction recorded therein. The records must contain, but are not limited to, the following information:
1.
Time, date and place of purchase of each item.
2.
Name of individual acting on behalf of dealer in making purchase.
3.
Name, age and address of seller.
4.
Confirmation of seller's identification through a driver's license, State identification card or other adequate picture ID. The dealer shall include in the record any identification numbers that may be displayed on the merchandise identification. Any purchase without such proof is prohibited.
5.
A description of item being sold with any identification numbers or markings.
6.
A clear and identifiable fingerprint of the right thumb of the seller if said merchandise is valued over seven hundred fifty dollars ($750.00).
7.
A clear and identifiable photograph accompanied by a detailed written description of each item if said merchandise is valued over seven hundred fifty dollars ($750.00).
[Ord. No. 3630, 2-21-2023]
It shall be the duty of every pawnshop and small loan establishment to make out and deliver to the Harrisonville Police Department, on the first Tuesday of every week, a legible and accurate copy of their register of all property received, deposited or purchased during the previous week. Furthermore, the register shall at all times be open to the inspection of commissioned Police Officers.
[Ord. No. 3630, 2-21-2023]
Every pawnshop or small loan establishment shall give to each person who pledges property to secure a loan or who leaves property for any reason a plainly written receipt or ticket having upon it a full copy of all the entries required by this Chapter to be kept in the businesses register and no charge should be made for such receipt.
[Ord. No. 3630, 2-21-2023]
No pawnshop or small loan establishment shall take, buy or receive any personal property from any person under the age of eighteen (18) years without the written consent of such individual's parents or legal guardians. Said written consent shall be kept on file with the books and records.
[Ord. No. 3630, 2-21-2023]
Business shall only be conducted between the hours of 7:00 A.M. and 9:00 P.M.
[1]
Editor's Note: Former Section 630.140, Signage and Section 630.150, Geographic Limitations, were repealed 2-21-2023 by Ord. No. 3630.
[Ord. No. 3630, 2-21-2023]
A.
The provisions of this Chapter shall not apply to the following:
1.
Transactions between one (1) licensed, established dealer in the normal course of business and another licensed, established dealer.
2.
Any precious metal or gem dealer, at least ninety percent (90%) of whose gross income is derived from the sale of newly manufactured merchandise and who certifies this to the Director of the Department of Finance upon the enactment of this Chapter and thereafter whenever a retail business license shall be obtained or renewed.
3.
Estates purchased through banks, attorneys or at an auction or estate sale.
4.
Out-of-state purchases transacted through the United States mail.
5.
Industrial residue or by-products purchased from manufacturing firms.
6.
Coins which are not currently in circulation, purchased for their numismatic value.
7.
Monetized bullion including Krugerrands, Canadian Maple Leaf, Mexican five hundred (500) Pesos and United States silver and gold coins.
8.
Antique dealers.
[Ord. No. 3630, 2-21-2023]
A.
Any person who violates the provisions of this Chapter shall be guilty of a municipal offense and, upon convictions, shall be punished by a fine as established in the City's Comprehensive Schedule of Fees[1] or by imprisonment for not more than ninety (90) days or shall be both so fined and imprisoned. In addition, any violation of this Chapter shall be grounds for the Board of Aldermen to revoke any or all licenses or permits issued by the City.
[Ord. No. 3650, 5-1-2023]
[1]
Editor's Note: The Comprehensive Schedule of Fees is on file in the City offices.
B.
Each violation of this Chapter shall be considered a separate offense and any violation continuing more than one (1) day shall be considered a separate offense for each day of violation.
C.
The conduct of any business within the City in violation of any of the terms of this Chapter is hereby found and declared to be a public nuisance and the City Attorney may, in addition to or in lieu of prosecuting a criminal action hereunder, commence an action or proceeding for the abatement, removal and enjoinment thereof in the manner provided by law and shall take other steps and shall apply to such courts as may have jurisdiction to grant such relief as will abate or remove such pawnshop or small loan establishment and restrain and enjoin any person from conducting, operating or maintaining a pawnshop or small loan establishment contrary to the provisions of this Chapter.
[Ord. No. 3630, 2-21-2023]
If any pawnshop, small loan establishment or employee of such business violates any of the provisions of this Chapter or Chapter 367, RSMo., and is finally convicted in any court of the City or State, he/she may have their pawnshop/small loan establishment license suspended or revoked by the Board of Aldermen after a hearing. Fourteen (14) days' written notice of the hearing stating the grounds thereof shall be delivered at their place of business or by leaving or posting said notice at said address. The pawnshop or small loan establishment shall have the right at the hearing to be represented by an attorney, to cross-examine witnesses, to present evidence and to testify on their own behalf. The hearing shall be held in public at a regular or special meeting of the Board of Aldermen. If suspension or revocation of the license occurs, no license fee shall be refunded.