Subject to regulation by the State of California, all secondhand dealers must comply with the requirements set forth in the California Business and Professions Code, Division 8, Chapter 9 (Section 21500 et seq.). A pawnbroker is regulated by Division 8, Section 21000 et seq. of the Financial Code. A licensed pawnbroker is exempt from the secondhand dealer licensing requirements pursuant to Sections 21641 and 21642 of the Business and Professions Code and may engage in any secondhand dealer transaction. However, a pawnbroker conducting secondhand dealer activities must comply with all the secondhand dealer laws.
(Ord. 09-12, 9/11/2012)
a. 
"Pawnbroker"
is every person engaged in the business of receiving goods, including motor vehicles, in pledge as security for a loan pursuant to Section 21000 of the Financial Code, as amended from time to time.
b. 
"Secondhand dealer"
shall include any person, firm, or corporation whose business includes buying, selling, trading, taking in pawn, accepting for sale on consignment, accepting for auctioning or auctioning secondhand tangible personal property pursuant to Section 21626 of the Business and Professions Code, as amended from time to time.
c. 
"Tangible personal property"
means all secondhand property including but not limited to: clothing, jewelry, personal property which bears a serial number or personalized initials or inscription which is purchased by a secondhand dealer or pawnbroker; or which at the time it is acquired by the pawnbroker or secondhand dealer bears evidence of having had a serial number or personalized initials or inscription. Tangible personal property also includes new or used motor vehicles received in pledge as security for a loan by a pawnbroker. Tangible personal property does not include new goods or merchandise purchased from a bona fide manufacturer or distributor or wholesaler of such new goods or merchandise, or coins, monetized bullion, or commercial grade ingots of precious metals.
(Ord. 09-12, 9/11/2012)
It shall be unlawful for any person to engage in the business of a pawnbroker or secondhand dealer within the city limits without first obtaining a permit issued by the Chief of Police. A permit shall be issued to each pawnbroker and secondhand dealer after their application is approved by the Chief of Police and the Department of Justice.
(Ord. 09-12, 9/11/2012)
Each pawnbroker and secondhand dealer shall complete an application that will be investigated by the Chief of Police. Such application must contain a financial statement reviewed and signed by a licensed certified public accountant.
(Ord. 09-12, 9/11/2012)
The Chief of Police shall cause an investigation to be made of the statements in the application and of the background of the applicant and forward the applicant’s information and fingerprints to the Department of Justice for review.
(Ord. 09-12, 9/11/2012)
Upon the Chief of Police’s review of the application, the Chief of Police may refuse to issue a permit to the applicant under this chapter for any of the following reasons:
(a) 
The investigation reveals that the applicant falsified information on the application, concealed a material fact or otherwise committed any fraud in the application.
(b) 
The applicant has been convicted of a misdemeanor/felony involving an offense against private property interests. Such property offenses include, but are not limited to, larceny, false pretense, fraud, grand theft, embezzlement and receipt of stolen property.
(c) 
The applicant has been denied a permit under this chapter within the immediate past year, unless the applicant can and does show to the satisfaction of the Chief of Police that the reasons for such earlier denial no longer exist.
(Ord. 09-12, 9/11/2012)
The applicant shall pay a Department of Justice investigation fee for review of the applicant’s fingerprints. The applicant shall also pay a City of Oakley processing fee as established by resolution.
(Ord. 09-12, 9/11/2012)
No pawnbroker or secondhand dealer permit may be sold, transferred or assigned by the permittee, or by operation of law, to any other person or persons; any such sale, transfer or assignment, or attempted sale, transfer or assignment, shall be deemed to constitute a voluntary surrender of such permit and such permit shall thereafter be deemed terminated and void.
(Ord. 09-12, 9/11/2012)
Pawnbroker and secondhand dealer permit application(s) for submittal to the Department of Justice shall be maintained and renewed every other year from the date of issuance by the City.
(Ord. 09-12, 9/11/2012)
No applicant holding a permit under this chapter, or the applicant’s manager, agent or employee, shall take or receive any goods, articles or things from any person who is in an intoxicated condition or from any suspected thief or associate of thieves or a suspected or known receiver of stolen property or from any persons reasonably suspected to be contained in any such categories.
(Ord. 09-12, 9/11/2012)
No person shall operate a pawnbroker and secondhand dealer business without compliance with all applicable zoning regulations.
(Ord. 09-12, 9/11/2012)
[1]
Code reviser’s note: Ord. 09-12 adds this section as Section 5.12.122. This section has been editorially renumbered to avoid duplication.
No business tax certificate shall be issued until investigation by the Chief of Police and Department of Justice is completed and the permit is approved. The business tax certificate shall be issued upon payment of the business tax fee as required in Chapter 3.5.
(Ord. 09-12, 9/11/2012)
[1]
Code reviser’s note: Ord. 09-12 adds this section as Section 5.12.122. This section has been editorially renumbered to avoid duplication.