[HISTORY: Adopted by the Common Council of
the City of Rice Lake 9-27-2005 by Ord. No. 05-14. Amendments noted where applicable.]
A.
The Common Council finds that the services offered
by pawnshops provide an opportunity for individuals to readily transfer
stolen property to those businesses. The Common Council also finds
that consumer protection regulation is warranted in transactions involving
these businesses. The Common Council further finds that pawnshops
have outgrown the city's current ability to effectively or efficiently
identify criminal activity related to them. The purpose of this chapter
is to prevent pawnshops from being used to facilitate the commission
of crimes and to assure that they comply with basic consumer protection
standards, thereby protecting the public health, safety, and general
welfare of the citizens, and pursuant to the authority granted by
s. 134.71, Wis. Stats.
B.
This chapter implements and establishes the required
use of any electronic recordkeeping system approved by the Chief of
Police or his or her designees to help the Police Department better
regulate current and future pawnshops to decrease and stabilize costs
associated with the regulation of pawnshops, and to increase identification
of criminal activities in pawnshops through the timely collection
and sharing of transaction information.
[Amended 10-13-2020 by Ord. No. 20-12]
As used in this chapter, the following terms
shall have the meanings indicated:
Any item of value.
[1]A corporation, trust, or community chest, fund, or foundation
organized and operated exclusively for religious, charitable, scientific,
literary, or educational purposes, or for the prevention of cruelty
to children or animals, no part of the net earnings of which inures
to the benefit of any private shareholder or individual.
A person with whom a pawnbroker, or an agent thereof, engages
in a transaction of purchase, sale, receipt, or exchange of any secondhand
article.
Any person who engages in the business of lending money on
the deposit or pledge of any article or purchasing any article with
an expressed or implied agreement or understanding to sell it back
at a subsequent time at a stipulated price. To the extent that a pawnbroker's
business includes buying personal property previously used, rented,
leased, or selling it on consignment, the provisions of this chapter
shall be applicable. A person is not acting as a pawnbroker when engaging
in any of the following:
Any transaction at an occasional garage or yard
sale, an estate sale, a gun, knife, gem, or antique show, or a convention.
Any transaction entered into by a person engaged
in the business of junk collector, junk dealer, or scrap processor,
as described in s. 70.995(2)(x), Wis. Stats.
Any transaction while operating as a charitable
organization or conducting a sale, the proceeds of which are donated
to a charitable organization.
Any transaction as a purchaser of a secondhand
article from a charitable organization if the secondhand article was
a gift to the charitable organization.
Any transaction as a seller of a secondhand
article that the person bought from a charitable organization if the
secondhand article was a gift to the charitable organization.
Every transaction conducted by a pawnbroker in which an article
or articles are received through a pawn, purchase, consignment, or
trade, or in which a pawn is renewed, extended, voided, or redeemed,
or for which a unique transaction number or identifier is generated
by their point-of-sale software, or an item is confiscated by law
enforcement, is reportable except:
The bulk purchase or consignment of new or used
articles from a merchant, manufacturer, or wholesaler having an established
permanent place of business, and the retail sale of said articles,
provided the pawnbroker must maintain a record of such purchase or
consignment that describes each item, and must mark each item in a
manner that relates it to that transaction record.
Retail and wholesale sales of articles originally
received by pawn or purchase, and for which all applicable hold and/or
redemption periods have expired.
Owned by any person, except a wholesaler, retailer, or licensed
secondhand article dealer, immediately before the transaction at hand.
[1]
Editor's Note: The former definitions of "automated pawn system
(APS)" and "billable transaction," which immediately followed this
definition, were repealed 10-13-2020 by Ord. No. 20-12.
At all times during the term of the license,
the pawnbroker must allow the Police Department to enter the premises
where the licensed business is located, including all off-site storage
facilities, during normal business hours, except in an emergency,
for the purpose of inspecting such premises and inspecting the items,
wares, merchandise, and records therein to verify compliance with
this chapter or other applicable laws.
No person may operate as a pawnbroker in the
city unless the person first obtains a pawnbroker license under this
chapter.
Each license issued under this chapter shall
be displayed in a conspicuous place visible to anyone entering a licensed
premise.
A person wishing to operate as a pawnbroker
shall apply for a license to the City Clerk-Treasurer. The City Clerk-Treasurer
shall furnish application forms approved by the Police Department
that shall require all of the following:
A.
The applicant's name, place and date of birth, current
residence address, and residence addresses for the ten-year period
prior to the date of the application.
B.
The name and address of the business and of the owner
of the business premises.
C.
Whether the applicant is a natural person, corporation,
limited liability company, or partnership, and:
(1)
If the applicant is a corporation, the state where
incorporated and the names and addresses of all officers and directors.
(2)
If the applicant is a partnership, the names and addresses
of all partners.
(3)
If the applicant is a limited liability company, the
names and addresses of all members.
(4)
The name of the manager or proprietor of the business.
(5)
Any other information that the City Clerk-Treasurer
may reasonably require.
D.
A statement as to whether the applicant, including
an individual, agent, officer, director, member, partner, manager,
or proprietor, has been convicted of any crime, statutory violation
punishable by forfeiture, or county or municipal ordinance violation.
If so, the applicant must furnish information as to the time, place,
and offense of all such convictions.
The Police Department shall investigate each
applicant and any other person listed in Subsection C above for a
pawnbroker license. The Department shall furnish the information derived
from that investigation in writing to the City Clerk-Treasurer. The
investigation shall include each agent, officer, member, partner,
manager, or proprietor.
A.
The Common Council shall grant the license if all
of the following apply:
(1)
The applicant, including an individual, a partner,
a member of a limited liability company, a manager, a proprietor,
or an officer, director, or agent of any corporate applicant, does
not have an arrest or conviction record, subject to ss. 111.321, 111.322
and 111.335 of the Wisconsin Statutes.
(2)
The applicant provides to the City Clerk-Treasurer
a bond of $2,500 with not less than two (2) sureties to insure observation
of all municipal ordinances or state or federal laws relating to pawnbrokers.
The bond must be in full force and effect at all times during the
term of the license.
B.
No license issued under this subsection may be transferred.
C.
Each license is valid from January 1 until the following
December 31.
A.
Identification. No pawnbroker may engage in a transaction
of purchase, receipt, or exchange of any secondhand article from a
customer without first securing adequate identification from the customer.
At the time of the transaction, the pawnbroker shall require the customer
to present one of the following types of identification:
B.
C.
Records required. At the time of any reportable transaction
other than renewals, extensions, or redemptions, every pawnbroker
must immediately record in English the following information by using
ink or other indelible medium on forms or in a computerized record
approved by the Police Department:
(1)
A complete and accurate description of each item,
including, but not limited to any trademark, identification number,
serial number, model number, brand name, or other identifying mark
on such an item.
(2)
The purchase price, amount of money loaned upon or
pledged therefor.
(3)
The maturity date of the transaction and the amount
due, including monthly and annual interest rates and all pawn fees
and charges.
(4)
Date, time, and place the item of property was received
by the pawnbroker, and the unique alpha and/or numeric transaction
identifier that distinguishes it from all other transactions in the
pawnbroker's records.
(5)
Full name, current residence address, current residence
telephone number, date of birth, and accurate description of the person
from whom the item of property was received, including sex, height,
weight, race, color of eyes, and color of hair.
(6)
The identification number and state of issue from
any of the following forms of identification of the seller:
(7)
The signature of the person identified in the transaction.
(8)
Renewals, extensions, and redemptions. The pawnbroker
shall provide the original transaction identifier, the date of the
current transaction, and the type of transaction for renewals, extensions,
and redemptions.
(9)
The pawnbroker shall photograph, with a digital camera
or web camera, the person pledging, trading, pawning, exchanging,
or selling the property. The photograph shall clearly show a frontal
view of the subject's face along with the pawnbroker's ticket or transaction
number and a photograph of the item(s) being pledged, traded, pawned,
exchanged, or sold. If a photograph is taken, it must be at least
two inches in length by two inches in width and must be maintained
in such a manner that the photograph can be readily matched and correlated
with all other records of the transaction to which they relate. Such
photographs must be available to the Chief of Police, or the Chief's
designee, upon request. The major portion of the photography must
include an identifiable facial image of the person who pawned or sold
the item. Items photographed must be accurately depicted. The licensee
must inform the person that he or she is being photographed by displaying
a sign of sufficient size in a conspicuous place in the premises.
If a video photograph is taken, the video must be accurately depicted.
Video photographs must be electronically referenced by time and date
so they can be readily matched and correlated with all other records
of the transaction to which they relate. The licensee must inform
the person that he or she is being videotaped by displaying a sign
of sufficient size in a conspicuous place on the premises. The licensee
must keep the exposed videotape for three months.
[Amended 10-13-2020 by Ord. No. 20-12]
(10)
For every secondhand article purchased, received, or exchanged by a pawnbroker from a customer off the pawnbroker's premises, or consigned to the pawnbroker for sale on their premises, the pawnbroker shall keep a written inventory. In this inventory the pawnbroker shall record the name and address of each customer, the date, time, and place of the transaction, and a detailed description of the article that is the subject of the transaction. The customer shall sign his or her name on a declaration of ownership of the secondhand article identified in the inventory and shall state that he or she owns the secondhand article. The pawnbroker shall retain an original and a duplicate of each entry and declaration of ownership relating to the purchase, receipt, or exchange of any secondhand article for not less than one year after the date of the transaction, except as provided in Subsection E, and shall make duplicates of the inventory and declarations of ownership available to any law enforcement officer for inspection at any reasonable time.
D.
Holding period.
(1)
Except as provided in Subsection D(3), any secondhand article purchased or received by a pawnbroker shall be kept on the premises or other place for safekeeping for not less than 30 days after the date of purchase or receipt, unless the person known by the pawnbroker to be the lawful owner of the secondhand article redeems it.
(2)
During the period set forth in Subsection D(1), the secondhand article shall be held separate from saleable inventory and may not be altered in any manner. The pawnbroker shall permit any law enforcement officer to inspect the secondhand article during this period. Within 24 hours after a request of a law enforcement officer during this period, a pawnbroker shall make available for inspection any secondhand article which is kept off the premises for safekeeping.
E.
Redemption period. Any person pledging, pawning or depositing any item for security must have a minimum of 60 days from the date of that transaction to redeem the item before it may be forfeited and sold. During the sixty-day holding period, items may not be removed from the licensed location. Pawnbrokers are prohibited from redeeming any item to anyone other than the person to whom the receipt was issued, to any person identified in a written and notarized authorization to redeem the property identified in the receipt, or to a person identified in writing by the pledger at the time of the initial transaction and signed by the pledger, or with the approval of the Police Department. Written authorization for release of property to persons other than the original pledger must be maintained along with the original transaction record in accordance with Subsection C(10).
[Amended 10-13-2020 by Ord. No. 20-12]
F.
Police order to hold property.
(1)
Investigative hold. Whenever a law enforcement officer from any agency notifies a pawnbroker not to sell an item, the item must not be sold or removed from the premises. The investigative hold shall be confirmed in writing by the originating agency within 72 hours and will remain in effect for 15 days from the date of initial notification, or until the investigative order is canceled, or until an order to confiscate is issued, pursuant to Subsection F(2), whichever comes first.
(2)
Order to confiscate.
(a)
If an item is identified as stolen or evidence
in a criminal case, the Police Department may physically confiscate
and remove it from the shop, pursuant to a written order from the
Police Department.
(b)
When an item is confiscated, the person doing
so shall provide identification upon request of the pawnbroker, and
shall provide the pawnbroker with the name and phone number of the
confiscating officer and the case number related to the confiscation.
(c)
When an order to confiscate is no longer necessary,
the Police Department shall so notify the pawnbroker.
G.
Daily reports to police.
(1)
Pawnbrokers must submit every reportable transaction to the Police Department daily in the following manner. Pawnbrokers must provide to the Police Department all information required in Subsection C and other required information, by transferring it from their computer to the electronic recordkeeping system via modem. All required records must be transmitted completely and accurately after the close of business each day in accordance with standard internet security protocol and procedures established by the Police Department. The pawnbroker must display a sign of sufficient size in a conspicuous place on the premises informing all patrons that all transactions are reported daily to the Police Department.
[Amended 10-13-2020 by Ord. No. 20-12]
(3)
If a pawnbroker is unable to successfully transfer
the required reports by modem, the pawnbroker must provide the Police
Department with printed copies of all reportable transactions by 12:00
noon the next business day.
(4)
If the problem is determined to be in the pawnbroker's system and is not corrected by the close of the first business day following the failure, the pawnbroker must provide the required reports as detailed in Subsection G(3), and shall be charged a daily reporting failure fee of $10.00 until the error is corrected, or, if the problem is determined to be outside the pawnbroker's system, the pawnbroker must provide the required reports in Subsection G(3) and resubmit all such transactions via modem when the error is corrected.
(5)
Regardless of the cause or origin of the technical
problems that prevented the pawnbroker from uploading the reportable
transactions, upon correction of the problem, the pawnbroker shall
upload every reportable transaction from every business day the problem
has existed.
(6)
The provisions of this section notwithstanding, the
Police Department may, upon presentation of extenuating circumstances,
delay the implementation of the daily reporting penalty.[2]
[2]
Editor's Note: Former Subsection G(7), regarding businesses
without 200 reportable transactions in the past calendar year, which
immediately followed this subsection, was repealed 10-13-2020 by Ord. No. 20-12.
H.
Exception for customer return or exchange. Nothing
in this section applies to the return or exchange from a customer
to a pawnbroker of any secondhand article purchased from the pawnbroker.
Every pawnbroker must provide a receipt to the
party identified in every reportable transaction and must maintain
a duplicate of that receipt for three years. The receipt must include
at least the following information:
A.
The name, address, and telephone number of the licensed
business.
B.
The date and time the item was received by the pawnbroker.
C.
Whether the item was pawned or sold, or the nature
of the transaction.
D.
An accurate description of each item received, including,
but not limited to, any trademark, identification number, serial number,
model number, brand name, or other identifying mark on such an item.
E.
The signature or unique identifier of the pawnbroker
or employee that conducted the transaction.
F.
The amount advanced or paid.
G.
The monthly and annual interest rates, including all
pawn fees and charges.
H.
The last regular day of business by which the item
must be redeemed by the pledger without risk that the item will be
sold, and the amount necessary to redeem the pawned item on that date.
I.
The full name, residence address, residence telephone
number, and date of birth of the pledger or seller.
J.
The identification number and state of issue from
any of the following forms of identification of the seller:
K.
Description of the pledger or seller, including approximate
sex, height, weight, race, color of eyes, and color of hair.
L.
The signature of the pledger or seller.
Pawnbrokers must attach a label to every item
at the time it is pawned, purchased, or received in inventory from
any reportable transaction. Permanently recorded on this label must
be the number or name that identifies the transaction in the shop's
records, the transaction date, the name of the item and the description
or the model and serial number of the items as reported to the Police
Department, whichever is applicable, and the date the item is out
of pawn or can be sold, if applicable. Labels shall not be reused.
A.
No person under the age of 18 years may pawn or sell or attempt to pawn or sell goods with any pawnbroker, nor may any pawnbroker receive any goods from a person under the age of 18 years, except as permitted by § 174-10B(2).
B.
No pawnbroker may receive any goods from a person
of unsound mind or an intoxicated person.
C.
No pawnbroker may receive any goods unless the seller
presents identification in the form of a valid driver's license, a
valid state of Wisconsin identification card, or current, valid photo
driver's license or identification card issued by the state of residency
of the person from whom the item was received.
D.
No pawnbroker may receive any item of property that
possesses an altered or obliterated serial number or other identification
number, or any item of property that has had its serial number removed.
E.
No person may pawn, pledge, sell, consign, leave,
or deposit any article of property not their own, nor shall any person
pawn, pledge, sell, consign, leave, or deposit the property of another,
whether with permission or without, nor shall any person pawn, pledge,
sell, consign, leave, or deposit any article of property in which
another has a security interest with any pawnbroker.
F.
No person seeking to pawn, pledge, sell, consign,
leave, or deposit any article of property with any pawnbroker shall
give a false or fictitious name, nor give a false date of birth, nor
give a false or out-of-date address of residence or telephone number,
nor present a false or altered identification or the identification
of another to any pawnbroker.
A.
The Common Council may deny, suspend, or revoke any
license issued by it under this section for fraud, misrepresentation,
or false statement contained in the application for a license, or
for any violation of this chapter or § 134.71, 943.34, 948.62
or 948.63, Wis. Stats., or for any other violation of local, state,
or federal law substantially related to the businesses licensed under
this chapter.
B.
The Common Council may deny, suspend, or revoke any
license issued by it under this section if the applicant is not a
citizen of the United States or a resident alien, or upon whom it
is impractical or impossible to conduct a background or financial
investigation due to the unavailability of information.
[Amended 10-13-2020 by Ord. No. 20-12]
A.
An annual fee as set forth in the fee schedule adopted
as part of the annual budget document shall be charged and payable
within 30 days of the billing date. Failure to pay within that time
period is a violation of this chapter.
B.
The City of Rice Lake fee schedule adopted as part
of the annual budget document is hereby amended by adding thereto
a fee for a pawnbroker license and the annual fee for the electronic
software. The license and annual fee may be amended from time to time
by the Common Council.
Any person who is convicted of violating any
of the provisions of this chapter shall forfeit not less than $5 nor
more than $2,000, plus the costs of prosecution, and in default of
such payment, shall be imprisoned in the county jail until such forfeiture
and costs are paid, but not exceeding 90 days. Each day of violation
shall constitute a separate offense.
If any section of this chapter is found to be
unconstitutional or otherwise invalid, the validity of the remaining
sections shall not be affected.
