Village of Shorewood, WI Chapter 404 Pawnbrokers and Secondhand Dealers

[HISTORY: Adopted by the Village Board of the Village of Shorewood as Ch. 10, Art. 16 of the 1986 Code. Amendments noted where applicable.]

GENERAL REFERENCES

Sales — See Ch. 437.

Transient merchants — See Ch. 480.

Used car dealers — See Ch. 506, Art. I.

§ 404-1 Purpose.

The purpose of this chapter is to protect the health, safety, and morals and promote the general welfare of the residents of the Village of Shorewood by:

A. Encouraging a variety of businesses to locate in the Village of Shorewood.

B. Attempting to prevent crimes such as fraud, misrepresentation and trafficking in stolen goods.

C. Protecting the public from unsafe or insanitary conditions and disease.

§ 404-2 Definitions.

As used in this chapter, the following terms shall have the meanings indicated:

ARTICLE

A. All property, such as but not limited to the following:

[Amended 2-4-1991 by Ord. No. 1595; 10-19-1998 by Ord. No. 1774]

	Ammunition and knives
	Audiovisual equipment
	Bicycles
	Books and magazines
	China and glassware
	Clothing
	Computers, printers, software and computer supplies
	Computer toys and games
	Crystal
	Electronic equipment
	Fur coats and other fur clothing
	Furniture
	Gas and electric appliances, large and small
	Microwave ovens
	Office equipment
	Pianos, organs, guitars and other musical instruments
	Silverware and flatware
	Sporting goods and equipment
	Telephones
	Used home furnishings, including windows, siding, piping, radiators, cabinets, bookcases, doors, light fixtures, wood moldings, bathroom fixtures, banisters, doorknobs, mantels, staircases or other attached items that are removed from a home or other building

B. Excepted therefrom shall be jewelry, automobiles and real estate.

CHARITABLE ORGANIZATION

An organization described in § 501(c)(3) of the Internal Revenue Code which is exempted from federal income tax under § 501(a) of the Internal Revenue Code or 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.

[Amended 10-19-1998 by Ord. No. 1774]

CUSTOMER

A person with whom a pawnbroker, secondhand article dealer or secondhand jewelry dealer or an agent thereof engages in a transaction of purchase, sale, receipt, consignment or exchange of any secondhand article or secondhand jewelry.

JEWELRY

Any tangible personal property ordinarily wearable on the person and consisting in whole or in part of any metal, mineral or gem customarily regarded as precious or semiprecious.

MUNICIPALITY

The Village of Shorewood.[1]

PAWNBROKER

Any person who engages in the business of lending money on the deposit or pledge of any article or jewelry or purchasing any article or jewelry with an expressed or implied agreement or understanding to sell it back at a subsequent time at a stipulated price.

REGISTRATION PLATE

A plate specified under § 341.12, Wis. Stats., or under a similar law of another state.

[Amended 10-19-1998 by Ord. No. 1774]

SECONDHAND

Owned by any person, except a wholesaler, retailer or secondhand article dealer or secondhand jewelry dealer licensed under this chapter, immediately before the transaction at hand.

SECONDHAND ARTICLE DEALER

A. The following persons described under Subsection A(1) and (2):

(1) Any person other than an auctioneer who primarily engages in the business of purchasing or selling secondhand articles; or

(2) Any person, other than a charitable organization, who is engaged in the business of purchasing used home furnishings for the purpose of collecting, separating, processing and selling the material that was used in manufacturing the used home furnishings.

B. Exceptions. "Secondhand article dealer" does not include a person who is engaged in any of the following:

(1) Any transaction at an occasional garage or yard sale, an estate sale, a gun, knife, gem or antique show, or a convention.

(2) Any transaction entered into by a person while engaged in a business for which the person is licensed under § 404-3 or 404-5.

(3) Any transaction while operating as a charitable organization or conducting a sale the proceeds of which are donated to a charitable organization.

(4) Any transaction between a buyer of a new article and the person who sold the article when new which involves the return of the article or the exchange of the article for a different, new article.

(5) Any transaction as a purchaser of a secondhand article from a charitable organization if the secondhand article was a gift to the charitable organization.

(6) Any transaction as a seller of a secondhand article which the person bought from a charitable organization if the secondhand article was a gift to the charitable organization.

[Amended 10-19-1998 by Ord. No. 1774]

SECONDHAND JEWELRY DEALER

Any person other than an auctioneer who engages in the business of any transaction consisting of purchasing, selling, receiving or exchanging secondhand jewelry, except for the following:

A. Any transaction at an occasional garage or yard sale, an estate sale, a gun, knife, gem or antique show or a convention.

[Amended 6-19-1995 by Ord. No. 1713]

B. Any transaction with a licensed secondhand jewelry dealer.

C. Any transaction entered into by a person while engaged in a business of smelting, refining, assaying or manufacturing precious metals, gems or valuable articles if the person has no retail operation open to the public.

[Amended 2-4-1991 by Ord. No. 1595]

D. Any transaction between a buyer of new jewelry and the person who sold the jewelry when new which involves any of the following:

(1) The return of the jewelry.

(2) The exchange of the jewelry for different, new jewelry.

E. Any transaction as a purchaser of secondhand jewelry from a charitable organization if the secondhand jewelry was a gift to the charitable organization.

F. Any transaction as a seller of secondhand jewelry which the person bought from a charitable organization if the secondhand jewelry was a gift to the charitable organization.

[1] Editor's Note: Amended at time of adoption of Code (see Ch. 1, General Provisions, Art. I).

§ 404-3 License for pawnbroker.

No person may operate as a pawnbroker unless the person first obtains a pawnbroker's license under this chapter.

§ 404-4 License for secondhand article dealer. [1]

No person may operate as a secondhand article dealer and have a principal place of business in the municipality unless the person first obtains a secondhand article dealer's license under this chapter.

[1] Editor's Note: Amended at time of adoption of Code (see Ch. 1, General Provisions, Art. I).

§ 404-5 License for secondhand jewelry dealer. [1]

No person may operate as a secondhand jewelry dealer and have a principal place of business in the municipality unless the person first obtains a secondhand jewelry dealer's license under this chapter.

[1] Editor's Note: Amended at time of adoption of Code (see Ch. 1, General Provisions, Art. I).

§ 404-6 License application.

[Amended 9-7-1993 by Ord. No. 1667; 2-25-2008 by Ord. No. 1935]

A person wishing to operate as a pawnbroker, secondhand article dealer or secondhand jewelry dealer in the Village of Shorewood shall apply to the Village Clerk for a license. The Village Clerk shall furnish application forms provided to the Clerk by the State Department of Agriculture, Trade and Consumer Protection which shall require the following:

A. The applicant's name, place and date of birth and residence address.

B. The names and addresses of the business and of the owner of the business premises.

C. Whether the applicant is a natural person, corporation or partnership, and:

(1) If the applicant is a corporation, the state where incorporated and the names and addresses of all officers, directors, stockholders and agents.

(2) If the applicant is a partnership, the names and addresses of all partners.

D. A statement as to whether the applicant (individual, partners, officers, directors, stockholders, or agent) has been convicted within the preceding 10 years of a felony or a misdemeanor, statutory violation punishable by forfeiture or county or municipal ordinance violation in which the circumstances of the felony, misdemeanor or other offense substantially relate to the circumstances of the licensed activity and, if so, the nature and date of the offense and the penalty assessed.

E. The name of the manager or proprietor of the business.

F. [1]Any other information that the Village Clerk may reasonably require.

[1] Editor's Note: Former Subsection F, regarding proof of permit, was repealed 1-11-2022 by Ord. No. 3037. This ordinance also renumbered former Subsection G as Subsection F.

§ 404-7 Investigation of license applicant.

[Amended 2-25-2008 by Ord. No. 1935]

The Police Department shall investigate each applicant for a pawnbroker's, secondhand article dealer's or secondhand jewelry dealer's license to determine whether the applicant has been convicted within the preceding 10 years of a felony or a misdemeanor, statutory violation punishable by forfeiture or county or municipal ordinance violation described under § 404-6D and, if so, the nature and date of the offense and the penalty assessed. The Police Department shall furnish the information derived from that investigation in writing to the Village Clerk.

§ 404-8 License issuance.

A. The Village Board shall grant the license, conditioned upon the following:

(1) The applicant, including an individual, a partner or an officer, director or agent of any corporate applicant, has not been convicted within the preceding 10 years of a felony or a misdemeanor, statutory violation punishable by forfeiture or county or municipal ordinance violation in which the circumstances of the felony, misdemeanor or other offense substantially relate to the circumstances of being a pawnbroker, secondhand jewelry dealer, or secondhand article dealer.[1]

[Amended 2-25-2008 by Ord. No. 1935]

[1] Editor's Note: Former Subsection A(2) and (3), regarding bonds and conditional use permits, which immediately followed, were repealed 1-11-2022 by Ord. No. 3037.

B. No license issued under this chapter may be transferred.

C. Term of license. Each license for a pawnbroker, secondhand article dealer or secondhand jewelry dealer is valid from July 1 until the following June 30.

§ 404-9 Pawnbroker and dealer requirements.

[Amended 2-25-2008 by Ord. No. 1935; 2-3-2020 by Ord. No. 3010]

A. Identification. No pawnbroker, secondhand article dealer or secondhand jewelry dealer may knowingly engage in a transaction of purchase, receipt or exchange of any secondhand article or secondhand jewelry from a customer without first obtaining the person's signature and recording the following information:

(1) The person's name and address.

(2) At the time of the transaction, the pawnbroker, secondhand article dealer or secondhand jewelry dealer shall require the customer to present one of the following types of identification:

(a) A county identification card.

(b) A state identification card.

(c) A valid Wisconsin motor vehicle operator's license.

(d) A valid motor vehicle operator's license, containing a picture, issued by another state.

(e) A military identification card.

(f) A valid passport.

(g) An alien registration card.

(h) A senior citizen's identification card containing a photograph.

(i) Any identification document issued by a state or federal government, whether or not containing a picture, if the pawnbroker, secondhand article dealer or secondhand jewelry dealer obtains a clear imprint of the customer's right index finger.

(3) The registration plate numbers and the color, make, model and year of any motor vehicle delivering the articles to the secondhand article dealer.

(4) If known by the person, the address of the home or other building from which any used home furnishings were removed.

B. Transactions with minors.

(1) Except as provided in Subsection B(2), no pawnbroker, secondhand article dealer or secondhand jewelry dealer may engage in a transaction of purchase, receipt or exchange of any secondhand article or secondhand jewelry from any minor.

(2) A pawnbroker, secondhand article dealer or secondhand jewelry dealer may engage in a transaction described under Subsection B(1) if the minor is accompanied by his or her parent, spouse (if not a minor), or guardian at the time of the transaction or if the minor provides the pawnbroker, secondhand article dealer or secondhand jewelry dealer with the parent's, spouse's or guardian's written consent to engage in the particular transaction.

C. Records. For every secondhand article purchased, received or exchanged by a secondhand article dealer from a customer off the secondhand article dealer's premises or consigned to the secondhand article dealer for sale on the secondhand article dealer's premises, the secondhand article dealer shall keep a written inventory. In this inventory, the secondhand article dealer shall record the name and address of each customer, the date, time and place of the transaction and a detailed description of the article which 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 secondhand article dealer 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(5), any secondhand article or secondhand jewelry purchased or received by a pawnbroker shall be kept on the pawnbroker's 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 or secondhand jewelry recovers it.

(2) Except as provided in Subsection D(5), any secondhand article purchased or received by a secondhand article dealer shall be kept on the secondhand article dealer's premises or other place for safekeeping for not less than 21 days after the date of purchase or receipt.

(3) Except as provided in Subsection D(5), any secondhand jewelry purchased or received by a secondhand jewelry dealer shall be kept on the secondhand jewelry dealer's premises or other place for safekeeping for not less than 21 days after the date of purchase or receipt.

(4) During the period set forth in Subsection D(1), (2) or (3), the secondhand article or secondhand jewelry shall be held separate and apart and may not be altered in any manner. The pawnbroker, secondhand article dealer or secondhand jewelry dealer shall permit any law enforcement officer to inspect the secondhand article or secondhand jewelry during this period. Within 24 hours after a written request of a law enforcement officer during this period, a pawnbroker, secondhand article dealer or secondhand jewelry dealer shall make available for inspection any secondhand article or secondhand jewelry which is kept off the premises for safekeeping. Any law enforcement officer who has reason to believe any secondhand article or secondhand jewelry was not sold or exchanged by the lawful owner may direct a pawnbroker, secondhand article dealer or secondhand jewelry dealer to hold that secondhand article or secondhand jewelry for a reasonable length of time which the law enforcement officer considers necessary to identify it.

(5) Subsection D(1) through (4) do not apply to any of the following:

(a) A coin of the United States, any gold or silver coin or gold or silver bullion.

(b) A secondhand article or secondhand jewelry consigned to a pawnbroker, secondhand article dealer or secondhand jewelry dealer.

E. Report to law enforcement agency. Within 24 hours after purchasing or receiving a secondhand article or secondhand jewelry, a pawnbroker, secondhand article dealer or secondhand jewelry dealer shall make available for inspection by a law enforcement officer the original form completed under Subsection C(1). Notwithstanding § 19.35(1), Wis. Stats., a law enforcement agency receiving the original form or inventory or a declaration of ownership may disclose it only to another law enforcement agency.

F. Website reporting. All transaction description records, including required photographs or video recordings, except transaction description records kept by junk collectors and junk dealers for nonregulated property, and except for signed declarations of ownership and patron signatures on transaction description records, shall be reported not later than the close of each business day by posting and uploading all transaction description records to the internet website North East Wisconsin Property Reporting System (NEWPRS). All required records must be transmitted completely and accurately in accordance with standards and procedures established by NEWPRS. The Police Department may allow access to transaction description records posted or uploaded to NEWPRS or provide copies of transaction description records and provide copies of declarations of ownership to any other law enforcement agency.

G. Website record entry failures.

(1) Any transaction description record which cannot be posted or uploaded to NEWPRS by the close of the business day due to technical malfunction shall be posted or uploaded by 12:00 noon the next business day; and failing that, a hard copy of the transaction description record, including photographs or video recordings, shall be delivered to the Chief of Police, or the Chief's designee, in a format approved by the Chief of Police, or the Chief's designee, by 12:00 noon the next business day following the initial post or upload failure. Licensees shall continue to deliver hard copies of transaction description records to the Police Chief, or the Chief's designee, so long as the website record post or upload failures persist.

(2) If website post or upload failures are determined to be due to the licensee's system or internet connection, a licensee can be penalized under § 404-15 beginning on the fourth business day following the initial post or upload failure and continuing until transaction description records are again posted and uploaded to NEWPRS. The Police Department may delay, reduce or forego daily reporting penalties for posting or uploading failures as the Chief of Police, or the Chief's designee, sees fit without cause.

H. Exception for customer return or exchange. Nothing in this section applies to the return or exchange from a customer to a secondhand article dealer or secondhand jewelry dealer of any secondhand article or secondhand jewelry purchased from the secondhand article dealer or secondhand jewelry dealer.

§ 404-10 Prohibited acts.

A. The location or operation of any secondhand article dealer mall or flea market in the Village is prohibited.

B. Junk collecting, junk dealing and scrap processing in the Village are prohibited.

C. The purchase, sale, receipt, consignment or exchange of any firearms or ammunition suitable for use in any firearm by pawnbrokers or secondhand article or jewelry dealers in the Village is prohibited.

[Amended 2-20-1995 by Ord. No. 1710]

D. The purchase, sale, receipt, consignment or exchange of any secondhand electronic equipment or large or small gas or electric appliances is prohibited if such articles constitute more than 25% of the value of the inventory at any one time of a pawnbroker or secondhand article dealer or secondhand jewelry dealer; excepted herefrom shall be lamps, toasters, irons and similar articles.

§ 404-11 Condition of articles.

Any secondhand article dealer selling secondhand clothing shall maintain such clothing in a clean and sanitary condition prior to selling such clothing. The provisions of this section shall apply to anyone selling secondhand clothing in the Village whether licensed to do so or exempt from such licensing requirement.

§ 404-12 Charitable organizations.

The provisions of § 404-9 of this chapter shall apply to charitable organizations when such organizations purchase or take on consignment secondhand articles and then sell such articles.

§ 404-13 Revocation of license.

The Village Board may revoke any license issued by it under this chapter for fraud, misrepresentation or false statement contained in the application for a license or for any violation of this chapter or § 943.34, 948.62 or 948.63, Wis. Stats.

§ 404-14 License fees.

License fees required hereunder shall be as set forth in the Village Fee Schedule. The license fees shall not be prorated or refundable.

§ 404-15 Violations and penalties.

[Amended 2-4-1991 by Ord. No. 1595]

A. Upon conviction for a first offense under this chapter, a person shall forfeit not less than $50 nor more than $1,000.

B. Upon conviction for a second or subsequent offense under this chapter, a person shall forfeit not less than $500 nor more than $2,000.