[HISTORY: Adopted by the Common Council of the City of Oswego 5-9-2016 by L.L. No. 3-2016. Subsequent amendments noted where applicable.]
Editor's Note: This local law also repealed former Ch. 176, Pawnbrokers, adopted 5-12-1980 as Ch. 81 of the 1980 Code, as amended.
The Common Council finds and determines that the creation of a uniform, citywide registration and recordkeeping requirement for secondhand dealers located within the City of Oswego will curtail the distribution and facilitate the recovery of stolen property. The Common Council further finds and determines pursuant to its police and home rule powers and those powers specifically granted and regulations specifically set forth in Article 5 of the New York State Business Law that the recordkeeping requirements imposed herein are both reasonable and feasible to implement and will assist the law enforcement community in tracing and recovering secondhand article as defined herein that are stolen property. This chapter shall repeal and replace Chapter 176, Pawnbrokers, adopted by the Common Council of the City of Oswego 5-12-1980 as Chapter 81 of the 1980 Code.
For the purpose of this chapter, the terms used herein are defined as follows:
- Items or collectibles recognized as such by established dealer associations within the industry.
- COLLATERAL LOAN BROKER
- Includes any person, partnership or corporation:
- A. Loaning money on deposit or pledge of personal property other than securities or printed evidences of indebtedness; or
- B. Dealing in the purchasing of the personal property on the condition selling back at a stipulated price; or
- C. Designated or doing business as furniture storage warehouse, and loaning and advancing money upon goods, wares, or merchandise pledged or deposited as collateral security.
- An official document issued by the United States government, or by any state, county, municipality, public agency or department thereof, provided that such document contains a photographic image of the holder.
- PRECIOUS METALS
- Gold, silver, platinum, titanium, precious and semiprecious stones and coins.
- SECONDHAND ARTICLE
- Items of every name and nature and by way of example but not exclusion, includes tangible items of every name and nature, but is not limited to, jewelry, watches, earrings, rings, brooches or similar items containing precious metals, in whole or in part, typically worn upon a person for adornment; semiprecious bullion, coins, or stones including diamonds, rubies, emeralds, topaz; televisions; cameras; video and other digital recording equipment; video game consoles including any version of Playstation or Xbox; portable GPS units commonly used in motor vehicles and hand held GPS units, portable MP3 music players including iPods, computers, laptop computers; cell phones and tablet computers and iPads; radar detectors and other items that are being purchased by or otherwise transferred to a second or later end user.
- SECONDHAND DEALER
- Any person, corporation, partnership, association, limited liability corporation, and the agents, associates, principals, officers or employees thereof, regularly engaged in the commercial exchange, purchase and/or sale of secondhand articles.
Upon the effective date of this chapter, no person, corporation, partnership, association, limited liability corporation shall operate in the City of Oswego as a secondhand dealer or hold themselves out as a secondhand dealer without first obtaining a permit from the City of Oswego as provided for herein.
Nothing in this chapter shall apply to the following:
The sale of any item sold at a garage sale, yard sale, estate sale, going out of business or moving sale (collectively referred to herein as "garage sale"), provided that all of the following items are met:
The garage sale is held on residential property owned, rented, leased, or occupied by the seller or by at least one seller if there are multiple sellers.
The items offered for sale are owned by the seller, and/or the seller is authorized by the owner to sell said items.
The garage sale does not exceed a period of 96 consecutive hours.
The seller does not conduct more than four garage sales in any consecutive twelve-month period.
None of the items offered for sale were purchased by the seller for resale or received on consignment for purposes of resale.
The sale of any secondhand article by any nonprofit, benevolent, religious or charitable organization, or on property occupied by any nonprofit, benevolent, religious or charitable organization when such sale is conducted by such organization.
The sale of secondhand articles at an advertised auction held by a licensed auctioneer.
Any transaction involving the sale or disposal of secondhand articles regulated by state or federal law, rule or regulation including sales through state or federal licensed dealerships, court-ordered sales, court-ordered levies or executions.
Internet sales or purchases except that such internet sales or purchases shall not be exempt from permit requirements if conducted by a person acting as a collateral loan broker as defined in Article 5, § 52, of the General Business Law of the State of New York and as further set forth in § 176-2(f) hereof.
The sale of antiques by an antiques dealer, or his/her employee or associate, provided the antiques dealer:
Has an established antiques shop advertised and promoted as such and maintains a regular schedule of open hours.
Exhibits at least twice a year at established advertised and/or promoted antiques shows in the United States.
Is a private dealer working from home and/or nonretail locations by appointment or invitation and provided that such private dealer offers for sale an inventory of primarily, by count, merchandise fitting definitions of "antiques" or "collectibles" as recognized by established dealer associations and/or promoters, has never been convicted of any crimes related to the possession of or sale of stolen goods of any sort, and has applied for and been granted a New York State resale number for collection and submission of sales tax.
Is not engaged in the purchase or sale of precious metals by weight.
The sale of secondhand article at antique shows, flea markets or trade shows, where such shows are advertised and/or promoted as such.
Transfers of secondhand article, including gifts with or without consideration, between or among relatives or family members.
Transfers or gifts of secondhand article by an individual or agent with letters of administration or letters testamentary over a decedent's estate, or pursuant to rules of intestate succession or a bequest in a last will and testament.
Licensed or permitted automotive dealers or automobile dismantlers; brokers or processors of recycled or recovered metals or electronics; or scrap metal yards.
Precious metals used, bought, sold or transferred in connection with a university or educational institution or ongoing business or industry, the primary purpose of which is not to sell secondhand articles, as defined herein, at retail.
Applicant for a permit pursuant to this chapter must file with the Clerk of the City of Oswego an application, supplied by such office, containing the following information:
The exact name, address, and telephone number of the applicant and the principals and officers thereof and the date of incorporation or organization, as applicable.
The name, business address, residential address, and telephone number of the operator of such business if other than the applicant.
The address and telephone number where the business is to be conducted.
The days and hours during which such business will be customarily open to the public.
A written certification, sworn under oath with penalties of perjury that the applicant, including any of its principals and officers, have not been convicted within the immediately preceding ten years of a crime involving theft, larceny, burglary, possession of stolen property, or other fraudulent dealing. The Clerk of the City of Oswego shall deny the applicant a permit if the applicant, any of its principals or officers has been convicted of any of the crimes listed within the immediately preceding 10 years.
A copy of a valid New York State sales tax certificate of authority for the business, person or entity.
A copy of a DCJS search of the applicant, including its principals and officers, for any crime which the applicant may have committed within the last 10 years.
Applicants receiving such permit shall pay therefore the sum of $100 yearly, and every such permit shall expire one year from the date thereof, and may be renewed upon filing a new application with the City Clerk each and every year upon the payment of the same sum and on performance of the other conditions herein contained. The application for renewal shall contain information which is current at time of renewal.
Applicants shall obtain a permit by registering with the Clerk of the City of Oswego. The permit shall remain in effect for one year. In the event the location of the business changes, any of the principals, officers or operators of such business change, hours of operation, or telephone numbers change, or if the applicant, including any of its principals and officers, have been convicted of any of the crimes listed in § 175-5E hereof, a permittee shall notify the City Clerk of the City of Oswego of the changes and shall file an amended application containing the changed information within 30 days of such change. If the permit has not expired at the time the amended application has been filed, there shall be no charge to file the amended application. The filing of such amended application shall not extend the expiration date of the permit.
The City Clerk of the City of Oswego shall deny the application for a permit of any applicant where such applicant, including any of the principals or officers thereof, has been convicted within the immediately preceding 10 years of a crime involving theft, larceny, burglary, possession of stolen property, or other fraudulent dealing.
The City Clerk of the City of Oswego may revoke any permit granted herein in the following situations:
Where the secondhand dealer or any of its principals or officers is convicted of a crime involving theft, larceny, burglary, possession of stolen property, or other fraudulent dealing, whether or not in connection with the permitted business, or of a violation of this chapter, as provided for in § 176-14 below.
Where the secondhand dealer has made a false statement in connection with its application for a permit or false business record entry on its books or records.
No such permit shall be granted to or renewed for an applicant who is in violation of any City of Oswego code, ordinance or local law (hereinafter "violations") or who owes property taxes, water or sewer fees, special assessments, fines for violations of City ordinances or any other fees or past due monies of any name or nature owed to the City of Oswego (hereinafter "unpaid monies").
The applicant shall have the burden of providing proof in a form acceptable to the department that there are no such violations or unpaid monies.
In the event that the applicant has accrued violations or unpaid monies, such permit or renewal thereof shall be denied regardless of whether such violations or unpaid monies relate to a parcel of real property for which the application is made or another parcel owned by applicant or are personal to the applicant.
In the event that the applicant has accrued violations or unpaid monies, such permit or renewal thereof shall be denied regardless of whether such violations or unpaid monies occurred or accrued before the effective date of this chapter.
Such permit, once granted, shall be revoked in the event that the applicant accrues violations or unpaid monies, or violations or unpaid monies are discovered, after the permit is granted. The revocation shall take effect five business days after receipt by the permit holder of notice from the City of Oswego of the pending revocation. Upon such revocation, all permitted activities and privileges shall immediately cease.
No application fees shall be refunded upon revocation of the permit.
The applicant must reapply for the issuance of such revoked permit by submitting a new application and paying all necessary application fees, and any such permitted activities or privileges may only be resumed once a new permit has been granted.
All requirements set forth herein shall also apply to nonperson entities and such permit or renewal thereof shall be denied to an entity, or revoked, if a person with a substantial interest in such entity owes such unpaid monies or has accrued such violations. A "person with a substantial interest" shall mean an ownership interest of more than 10% of, membership on the governing board of, holding an office in or holding the ability to cast or control more than 10% of the votes in such entity.
Notice of denial or revocation of a permit issued pursuant to this chapter shall be given in writing by the City Clerk to the secondhand dealer, the Chief of Police, and the Sheriff in writing, setting forth specifically the grounds on which such permit was either denied or revoked with opportunity to be heard. Such notice shall be transmitted by regular and certified or registered mail to the secondhand dealer. Such denial or revocation may be challenged in a special proceeding conducted pursuant to Article 78 of the New York State Civil Practice Law and Rules. Pending the outcome of such special proceeding regarding the denial or revocation of a permit, no person shall operate as a secondhand dealer.
A permit issued pursuant to this chapter must be renewed annually as measured from the date of the issuance of the initial permit and shall expire one year from the date of issuance thereof.
Every secondhand dealer shall cause the secondhand dealer permit to be prominently displayed at each location of secondhand dealer's place of business.
Except as otherwise provided herein, no secondhand dealer operating within the City of Oswego shall acquire any secondhand article unless such secondhand dealer has obtained and recorded the following information:
The amount paid, advanced, or loaned for the article.
A detailed and accurate description of the article including any identifying marks.
The serial and model number (if any).
In the case of precious metals, jewelry, and gems, a photograph of the article.
The date, time and place of this acquisition.
The information obtained shall be recorded on a written receipt, which receipt shall be numbered in consecutive order and maintained in the secondhand dealer's records as provided for herein.
Identification information. Prior to acquiring any secondhand article, every secondhand dealer shall request and review identification from the seller to verify the seller's identity by comparing the seller to the photographic image contained on said identification. The secondhand dealer shall record the seller's name, date of birth and address (or current address if different than that listed on the identification), and the identification number (e.g., motorist ID number) listed on the identification. The secondhand dealer shall make a photocopy or photograph of the front of the identification. If the acquisition is made from a seller who is also secondhand dealer, the secondhand dealer purchasing the item shall also record the business name and address of such seller and a statement by such seller regarding the number of days the item was held by such seller prior to instant acquisition.
Every secondhand dealer shall maintain for a period of two years all of the information required in Subsections A and B of § 176-11. Computerized records may be used to satisfy the requirements of this chapter, provided that such records include the required information and are available upon reasonable request for inspection in printed format.
All records required by this chapter and each secondhand article shall be subject to examination during such times and in such areas of the business that are open to the public by any member of the City Police of the City of Oswego or other police department or law enforcement agency. Consent to such examination shall be a condition of obtaining and retaining the secondhand dealer permit; provided, however, that a revocation of such consent by the secondhand dealer shall not result in a criminal penalty or violation, as provided for in § 176-14 of this chapter. In the event that a secondhand dealer revokes the consent to examine such records and secondhand article, the permit granted herein may be revoked by the Chief of Police of the City of Oswego or the City Clerk of the City of Oswego, pursuant to the notification and challenge provisions set forth in § 176-8B. Nothing in this chapter shall diminish or obviate the need for voluntary consent or a warrant to search a residence, business or other location not open to the public. The City Clerk of the City of Oswego shall compile a list of all secondhand dealers to whom permits have been issued and provide same to any law enforcement agency upon request.
For a period of seven days after the acquisition of any secondhand article, excluding the day of acquisition (the "holding period"), every secondhand dealer shall maintain the secondhand article in a manner so as to be easily identified with the record documenting the transaction in which said article was acquired. During the holding period, the secondhand dealer shall not:
As a condition of receiving a permit, the secondhand dealer shall agree to hold, for a period of 72 hours, any secondhand article, where a police officer has notified the secondhand dealer that law enforcement suspects that the article is stolen property. The seventy-two-hour holding period shall commence at the time of said notification. During the holding period, the secondhand dealer shall not:
Sell, trade, transfer, remove from the local business premises or otherwise dispose of any secondhand article covered by this chapter.
Alter, in any fashion, any such article, including, but not limited to, obliterating or defacing identifying marks or disassembling same.
Commingle any such article with similar items.
As a condition of receiving a permit, any secondhand dealer who purchases, sells or offers for sale new articles shall obtain those new articles only from an authorized retailer or wholesaler. Nothing in this § 176-12C shall prohibit the purchase or sale of new items obtained from individuals who sell less than three of an identical or same type of article within any calendar year.
In addition to any provisions of New York State Agriculture and Markets Law, it shall be unlawful for a secondhand dealer to knowingly buy or sell precious metals by weight unless the scale used for the transaction has first been inspected by the Oswego County Department of Weights and Measures. Notwithstanding any other provisions of law, no secondhand dealer license shall be issued unless all scales used by the permit holder have been inspected and passed by the Sealer of Weights and Measures.
Any secondhand dealer who fails to comply with the provisions of §§ 176-3, 176-5, 176-6, 176-11A, B, C(1), 176-12, and 176-13 of this chapter shall, upon conviction thereof, be guilty of a Class A misdemeanor as defined in § 55.10 of the Penal Law of the State of New York as may be amended from time to time. Any secondhand dealer who fails to comply with the provisions of §§ 176-8 and 176-11 of this chapter shall, upon conviction thereof, be guilty of an unclassified misdemeanor as defined in § 55.10 of the Penal Law of the State of New York as may be amended from time to time; provided, however, that a secondhand dealer's failure to consent to a search of the premises as provided for in § 176-11C(2) of this chapter shall not be punishable as a crime.
If any provision, sentence or clause of this chapter is held unconstitutional, illegal or invalid by a court of competent jurisdiction, such findings shall not affect or impair any or the remaining provisions, sentences or clauses or their application to persons and circumstances.
This chapter shall apply to all secondhand dealers operating in the City of Oswego.
This chapter shall become effective immediately upon filing with the Secretary of State, and shall be filed pursuant to the provisions of the Municipal Home Rule. All recordkeeping requirements, record retention periods, and secondhand article retention periods shall commence as of the effective date of this chapter and shall apply only to those articles acquired on or after the effective date of this chapter.