[3-26-2024 by Ord. No. 2024-09[1]]
A. 
The purpose of this chapter is as follows: (i) to implement and establish procedures pursuant to the New Jersey Pawnbroking Law (N.J.S.A. 45:22-2 et seq.); (ii) establish procedures for the licensing and operation of pawnbrokers and dealers of secondhand goods through the implementation of a standard body of uniform policies and recordkeeping requirements to which each business governed by this chapter shall abide; (iii) facilitate the prevention of fraud, impositions and other abuses upon citizens; and (iv) ensure the difficulty of disposing of stolen property and aid in the recovery of stolen property.
B. 
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 processors, 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 without having first obtained a license from the police department as hereinafter provided.
[1]
Editor's Note: This ordinance also repealed former Chapter 5.60, Dealers in Precious Metals and Other Secondhand Goods, consisting of Ord. No. 2014-13.
[3-26-2024 by Ord. No. 2024-09]
Words used in the present tense shall include the future, words in the plural number 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 meanings indicated:
ACCEPTABLE 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 U.S. state, a valid United States passport, or other verifiable U.S. 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 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 terms "antique" or "antiques" shall also mean "primitives."
ARTICLE
Any article of merchandise, including any 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 as so 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 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 recognized in the foreign jurisdiction, including any form 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 Ship Bottom or his/her designee/representative.
DATABASE
A computerized internet capable database with hardware and software compliant to, accessible by, and acceptable to the chief of police.
DEALER
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.
GARAGE SALE
Includes all sales entitled "garage sale," "lawn sale," "attic sale," "rummage sale," "flea market sale," "auction sale, "or" yard sale" or any similar casual 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 issued by retailers or banks to be used as an alternative to a non-monetary gift.
LICENSEE
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.
MINOR
Any person under the age of 18 years.
PAWNBROKER
Any person, partnership, association, or corporation lending money on deposit or pledge of personal property, other than chooses in action, securities, or printed evidence of 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 Pawnbroking Law.
PAWNBROKING LAW
The New Jersey statute and implementing regulations, N.J.S.A. 45:22-1, 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 businesses and pawnbrokers operating within the State of New Jersey.
PERSON
Any individual which is not a business entity. For purposes of this chapter, the term "person" shall also include an individual operating a business as a sole proprietorship.
PLEDGE
An article or articles deposited with a pawnbroker in the course of business.
PLEDGOR
A 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 an event "pledgor" means the disclosed principal.
PRECIOUS METALS
Comprised of gold, silver, sterling, platinum, and/or their alloys as defined in N.J.S.A. 51:5-1 et seq., N.J.S.A. 51:6-1 et seq., and/or N.J.S.A. 51:6A-1 et seq., gems, gemstones, coins, and all forms of jewelry herein contained.
PURCHASE
Not only the exchange of money for precious metals, but the exchange or trading of any other tangible or intangible property for precious metals.
PURCHASE
The exchange of money and the exchange, deposit, pledge, sale, conveyance, or trade of any tangible or intangible article.
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 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 previously been 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:
1. 
Advertises in any fashion that it buys or 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.
2. 
Devotes a significant segment or section of the business premises to the purchase or sale of secondhand or used items.
3. 
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 tem1 "secondhand goods" shall include "secondhand watches" except where the context clearly indicates to the contrary.
4. 
Secondhand Watches. A watch shall be deemed to be secondhand if it satisfies the following:
a. 
It as a whole or the case thereof or the movement thereof has been previously sold to or acquired by any person who bought or acquired the same for his use or the use of another, but not for resale; provided, however, that a watch which has been so sold or acquired and is thereafter returned either through an 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 and 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 Ocean County prosecutor or the prosecutor's duly appointed representative;
b. 
Its case, serial numbers or movement numbers or other distinguishing numbers or identification marks shall be erased, defaced, removed, altered, or covered; or
c. 
If its movement is more than five years old and has been repaired by any person or persons, including the vendor, notwithstanding that it 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 that address in the municipality where the dealer is required to register or who intends to close out or discontinue all retail business in the municipality within six months, or as so defined in N.J.S.A. 51:6A-5 and N.J.A.C. 13:47C-1.1.
[3-26-2024 by Ord. No. 2024-09]
Any licensee operating as a pawnshop or pawnbroker shall comply with all applicable state and federal laws and regulations that govern the same. Specifically, businesses dealing in the purchasing of precious metals will comply with the laws outlined in N.J.S.A. 51:6A-1. Notwithstanding anything in Chapter 5.04 (Business Licenses Generally) to the contrary, except where otherwise stated in this chapter, the provisions of this chapter shall govern pawnbrokers, pawn broking activities, dealers in secondhand goods and precious metal dealers with respect to title issuance, term, renewal, and effect of licenses issued pursuant to this chapter and the violations and penalties set forth in this chapter. It is the express intent that any conflict between this chapter and Chapter 5.04 shall be resolved in favor of this chapter.
[3-26-2024 by Ord. No. 2024-09]
No person, either as owner, manager, lessee, officer, or agent, or in any other business shall operate or permit to operate as a pawnbroker/secondhand dealership without first having obtained a license 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. 45:22-21).
A. 
Exemptions. The following are exempt from the requirements of this chapter:
1. 
Garage sales.
2. 
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 holding of the sale or which are incorporated as a not-for-profit corporation by the state.
3. 
Sales or purchases which are regulated by the licensing laws of the state, including automobile dealers, used parts dealers and automotive parts recyclers.
4. 
Antique Dealers. As used in this section, an antique dealer is defined as one who derives 75% of his 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
B. 
Application. An application for a license required shall be made in writing to the municipal clerk which shall minimally set forth the following:
1. 
The name of the individual, partnership, corporation or association applying for a license.
2. 
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 number of the officers and all shareholders owning more than 5% of the outstanding shares of stock.
3. 
The location for which the license is requested.
4. 
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.
5. 
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, list the date of revocation and jurisdiction.
6. 
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.
[3-26-2024 by Ord. No. 2024-09]
A. 
Any pawnbroker or secondhand dealer, before engaging in business, shall 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 $200, in addition to the standard business license fee. The license shall be renewed each year. Application for renewal of license shall be made to the municipal clerk on or before January 31 of each year and shall be submitted to the mayor and council for approval. The annual renewal fee shall be $10. Should the license be denied, the license fee shall be refunded to the applicant.
B. 
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.
[3-26-2024 by Ord. No. 2024-09]
A. 
The municipal clerk shall issue the license requested unless the following are identified:
1. 
The applicant is under the age of 18;
2. 
The location requested is not in a permanent structure;
3. 
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 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;
4. 
That the location requested and structure to be used would not comply with all applicable laws, including the zoning regulations;
5. 
The applicant, its partners, officers, or listed shareholders have held a license or had an interest in a license issued by any jurisdiction regulating the purchase or sale of secondhand property which was revoked for cause; or
6. 
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.
B. 
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.
C. 
Revocation. Any license issued for a secondhand dealer may be revoked or suspended for a period not to exceed 30 days by the mayor and council if they shall find after hearing:
1. 
The licensee, its officers, agents, or employees have violated any of the provisions of this chapter, the laws of the state, or the Borough Code in the operation of the business; or
2. 
The licensee, its partners, officers, or shareholders have been convicted of any offense set forth in this chapter; or
3. 
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, at least 10 days' written notice shall be provided to the licensee setting forth the alleged violation. The licensee may present evidence and cross-examine witnesses at such hearing.
D. 
Transfer. No license issued under this chapter may be transferred to any other person, partnership, corporation, or association.
E. 
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 municipal clerk for such change in writing.
[3-26-2024 by Ord. No. 2024-09]
A. 
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. (2300) and 7:00 a.m. (0700) the next day.
B. 
Prohibited Purchases. No licensee shall purchase or accept any goods, wares, articles, or things under any of the following circumstances.
1. 
Where the seller is less than the age of 18.
2. 
A pawnbroker may not accept a pledge from any person who is under the age of 16 (N.J.S.A. 45:22-31).
3. 
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.
4. 
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.
5. 
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.
C. 
Purchasing, Selling, or Displaying Weapons Prohibited. No licensee shall deal in, buy or sell, or display in his shop any pistol, revolver, 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.
D. 
Pawnbrokers' and Secondhand Dealers' Responsibilities and Requirements. Each pawnbroker or secondhand dealer shall, upon the purchase of any precious metals or secondhand goods from the public, be required to do as follows:
1. 
Operate and 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 resolved as soon as practicable. Failure by the licensee to resolve any failure or malfunction of equipment in a reasonable amount of time will lead to license revocation.
2. 
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 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. This information is to be documented through use of an electronic database software system as designated by the chief of police. These records shall be subject to the inspection of any authorized police officer.
3. 
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 (D)(2) above, plus the following.
a. 
A physical description of the seller.
b. 
The receipt number.
c. 
A full description of the item or items purchased, including, but not limited to, marks, numbers, dates, sizes, shapes, initials and monograms.
d. 
The price paid for the item.
e. 
The form must be signed by the seller and initialed by the clerk who made the transaction.
4. 
The precious metals are to be made available for inspection by the chief of police or his designated representative for a period of 10 days from the date the information required above is received by the chief of police or his 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 10-day period has expired. During this 10-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 designated representative, an investigation be implemented. The chief of police or his designated representative has the authority to grant the pawnbroker a waiver of the requirement under this section.
5. 
In addition to the information required to be reported above, each pawnbroker or secondhand dealer 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 currently valid (not expired) card issued by a government 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 the card is valid but does not contain the seller's current address, the licensee must separately record and report the current address.
6. 
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.
7. 
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.
8. 
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 #1 occurs on 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 30-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.
9. 
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 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 the 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.
[3-26-2024 by Ord. No. 2024-09]
A. 
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 such purchase, which records shall be opened to investigation by the police department.
B. 
Inspections. Every licensee and every person employed by the licensee in the conduct of business shall admit to any and every part of the premises designated in the license, during normal business hours, any law enforcement officer to examine any goods, articles, things, pledges, pawns, or books or other records on the premises dealing with purchase or sale of used property and to search for and to take into possession without compensation to the licensee any article known or for which such officer has reasonable grounds to believe to have been stolen. Such law enforcement officer may make any such search or seizure as is provided for in this section and property so seized shall be receipted for by such officer, who shall fully describe the seized property and sign the receipt. Should the officer determine the property not to be stolen, the officer shall promptly return same to the licensee and obtain a receipt therefore, as aforesaid. In the case of property obtained in the case of a domestic theft, the victim shall make restitution for the amount paid to obtain said property. Other restitution will be made by way of criminal complaints against the seller of said items.
[3-26-2024 by Ord. No. 2024-0944]
A. 
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, exchange, or offer for sale or exchange, expose for sale or exchange, possess with the intent to sell 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 words "secondhand" clearly and legibly written or printed thereon, and the said tag shall be so placed that the words "secondhand" shall be in plain sight at all times.
B. 
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 of the other written matter upon said invoice, which invoice shall also set forth the following:
1. 
The name and address of the vendor;
2. 
The name and address of the vendee;
3. 
The date of the sale;
4. 
The name of the watch or its makers;
5. 
The serial numbers, if any; and
6. 
Any other distinguishing numbers or identification marks upon its case and movement; or, if the serial numbers or other distinguishing numbers or identification marks shall have been erased, defaced, removed, altered, or covered, the invoice shall so state.
C. 
Record Retention. 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 Ocean County prosecutor or his duly authorized representative.
D. 
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.
[3-26-2024 by Ord. No. 2024-09]
A. 
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.
B. 
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 10-day suspension. Any person who is convicted 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 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 of said business may be revoked.
C. 
In addition to being subject to penalty as hereinafter set forth, any person who obtains a license as herein provided with a false or misleading application shall, upon the discovery thereof, suffer an immediate revocation of such license and forfeiture of all fees paid.