[HISTORY: Adopted by the Municipal Council
of the City of Clifton 12-20-1960 by Ord. No. 3319 as Article 8 of Chapter 10 of the
Revised Ordinances of the City of Clifton, New Jersey, 1960; amended
in its entirety 10-18-2016 by Ord.
No. 7333-16. Subsequent amendments noted where applicable.]
GENERAL REFERENCES
Advertising — See Ch. 121.
Auctions and auctioneers — See Ch. 149.
Bazaars, carnivals and circuses — See Ch. 159.
Canvassing and soliciting — See Ch. 189.
Hawking and peddling — See Ch. 265.
Junkyards and junk shops — See Ch. 289.
Licensed businesses — See Ch. 303.
Special sales — See Ch. 371.
Public solicitations — See Ch. 391.
A.
The purpose and intent of this chapter is to assist law enforcement
officials and victims of crime in recovering stolen precious metals
and other secondhand goods by requiring minimum identification, reporting,
maintenance and distribution criteria for licensed dealers in these
goods.
B.
No person shall use, exercise, or carry on the business, trade, or
occupation of the buying, selling, or pawning of precious metals or
other secondhand goods, whether at a permanent or temporary location,
without complying with the requirements of this chapter in the exact
manner described herein.
As used in this chapter, the following terms shall have the
meanings indicated:
Any verifiable United States government-issued identification,
including 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.
Any person, partnership, limited-liability company, corporation,
or other entity who, either wholly or in part, engages in or operates
any of the following trades or businesses: the buying for purposes
of resale of precious metals, jewelry, or other secondhand goods as
defined herein; pawnbrokers as defined herein.
Any person, partnership, association or corporation lending
money on deposit or pledge of personal property, other than choses
in action, securities, or printed evidences of indebtedness; purchasing
personal property on condition of selling it back at a stipulated
price; or doing business as furniture storage warehousemen and lending
money on goods, wares or merchandise pledged or deposited as collateral
security.
Gold, silver, platinum, palladium, and their alloys as defined
in N.J.S.A. 51:5-1 et seq. and 51:6-1 et seq.
Individuals and retail sellers, not to include wholesale
merchants, that engage in transactions with other merchants.
Every transaction conducted between a dealer and a member
of the public in which precious metals, jewelry, or any other secondhand
goods as defined herein are purchased or pawned.
Used merchandise including, but not limited to, antiques,
gold, silver, platinum, or other precious metals, jewelry, coins,
gemstones, gift cards, any tools, telephones, typewriters, word processors,
GPS devices, computers, computer hardware and software, television
sets, radios, record or stereo sets, electronic devices, musical instruments,
sporting goods, automotive equipment, collectibles, game cartridges,
DVDs, CDs, and other electronically recorded material, firearms, cameras
and camera equipment, video equipment, furniture, clothing, and other
valuable articles. For the purposes of this chapter, secondhand goods
shall not include goods transacted in the following manner:
Indicial sales or sales by executors or administrators;
Occasional or auction sales of household goods sold from private
homes;
Auctions of real estate; and
The occasional sale, purchase, or exchange of coins or stamps
by a person at his permanent residence or in any municipally owned
building who is engaged in the hobby of collecting coins or stamps
and who does not solicit the sale, purchase, or exchange of such coins
or stamps to or from the general public by billboard, sign, handbill,
newspaper, magazine, radio, television, or other form of printed or
electronic advertising.
A member of the public who sells or pawns used goods such
as precious metal, jewelry, or other secondhand goods to a dealer.
A.
No person, partnership, limited-liability company, corporation, or
other entity shall engage in the business of buying, selling, or pawning
of precious metals or other secondhand goods, as defined above, whether
from a permanent or temporary location, within the jurisdiction of
the municipality, without having first obtained a numbered license
from the Municipal Clerk.
B.
The application for a license shall set forth the following information:
(1)
The applicant's name, business name and business address.
(2)
Whether the applicant is an individual, partnership, corporation,
limited-liability company or another type of entity, containing a
full explanation and description thereof.
(3)
If the applicant is an individual, the applicant's residence
address and date and place of birth.
(4)
If the applicant is a partnership or limited liability company, the
full names, residence addresses, dates and places of birth of each
partner or member.
(5)
If the applicant is a corporation or other entity, the full names,
residence addresses, dates and places of birth of each major officer
and each stockholder, the name and address of the registered agent
and the address of the principal office. The term "stockholder," as
used herein, means and includes any person owning or having an interest,
either legal or equitable, in 10% or more of the stock issued and
outstanding of the applicant corporation. In the case of another entity,
the full names, residence addresses, dates and places of birth of
each person owning or having any interest, either legal or equitable,
aggregating in value 10% or more of the total capital of said entity,
the name and address of the registered agent, if any, and the address
of the principal office.
(6)
Whether the applicant or any partners, members officers or stockholders
thereof have ever been arrested and/or convicted of a crime and, if
so, the name of the person arrested or convicted, the date of the
arrest, the crime or charge involved and the disposition thereof.
The term "officers," as used herein, means and includes the president
vice president, secretary and treasurer of a corporate applicant.
(7)
The average quantity and kind, as nearly as can be determined, and
the value of the goods intended to be sold or exposed for sale in
the City.
(8)
The names and addresses of the persons from whom goods making up
the stock were or are to be purchased.
(9)
Three photographs of the applicant taken within 60 days immediately
prior to the date of the filing of the application, which pictures
shall be two inches by two inches, showing the head and shoulders
of the applicant in a clear and distinguishing manner.
(10)
The location where the business of the licensee shall be conducted
within the City of Clifton.
C.
Licensees may not operate at any location other than the site specified
in the license. Licensees operating at multiple locations must have
each location separately licensed.
A.
Upon receipt of an application completed pursuant to this chapter,
the Municipal Clerk shall refer such application to the Chief of Police,
who shall make an investigation of the prospective licensee, pursuant
to this chapter for the purpose of determining the suitability of
the applicant for licensing. The investigation shall include, but
shall not be limited to, the following:
(1)
The experience of the applicant in the business of purchase and sale of those articles or goods referred to in § 429-2 above, although nothing in this section shall be construed to warrant denial of a license solely on the basis of lack of experience.
(2)
The reputation of the applicant for fair dealing in the community,
which shall be made among credible sources, which sources shall be
disclosed to the applicant in the event of a denial of any license.
(3)
Any criminal record of the applicant including any past convictions
for any crime(s), disorderly persons offense(s), or municipal ordinance
violation(s) within this or any other jurisdiction. The Chief of Police
shall, as part of the initial application process and annual renewals,
require fingerprint criminal background checks through the Federal
Bureau of Investigation, Criminal Justice Information Services Division,
for the applicant and all owners and employees, which may require
payment of additional fees by the applicant.
(4)
The type of operation contemplated to be conducted by the applicant,
particularly whether the business is to be operated from a fixed location,
whether it is to be conducted from a location primarily devoted to
the purchase and sale of precious metal or other secondhand goods,
and other factors bearing on whether the licensed business will be
of a fixed and permanent nature.
B.
The Chief of Police shall complete any investigation pursuant to
this chapter within 30 days of the submission of the application to
the Municipal Clerk, fully completed by the applicant. If a criminal
record check has been requested within the thirty-day period and has
not been received by the Chief of Police within that period, the Chief
of Police may, if all other factors are satisfactory, recommend a
conditional issuance of the license subject to the finding regarding
criminal record. A conditional license may only be issued if all the
following are met:
(1)
Payment of a nonrefundable fee for a conditional license of $1,000.
Should the City Council grant a license, this conditional license
fee will be applied to the license fee.
(2)
That all forms, reports and investigations from all municipal departments
required under this chapter be forwarded to the City Clerk before
the issuance of a conditional license.
(3)
That the applicant has complied with all other provisions of the
chapter.
(4)
The conditional license shall not be transferable.
C.
The Chief of Police shall, upon completion of the investigation,
recommend grant or denial of the license to the Municipal Council,
who shall, in its discretion, grant or deny the license. Any recommendation
of the Chief of Police shall be in writing and, in the case of a recommendation
of denial, shall state fully and specifically the reasons for said
recommendation. If the Municipal Council accepts the recommendation
of the Chief of Police to deny any license, the applicant shall be
notified in writing within 10 days of such denial and the Clerk shall
forward to the applicant a statement of the reason or reasons for
such denial.
D.
Grounds for recommending denial of license include, but are not limited
to:
(1)
Reliable information indicating that the applicant has in the past
engaged in fraudulent or deceptive business practices in a business
identical to or similar to a dealer in secondhand goods.
(2)
Conviction of the applicant or any of its principal officers or employees
of any crime(s), disorderly persons offense(s) in which deceit or
misrepresentation is an element; or any conviction of any crime(s),
disorderly persons offense involving theft or the receiving of stolen
goods, regardless of whether the applicant was a principal, accessory
before the fact, after the fact, or a co-conspirator; or any prior
municipal ordinance violation(s) by the applicant or any of its principal
officers or employees in this or any other jurisdiction.
E.
Upon receipt of the recommendation of the Chief of Police, the Municipal Council shall, in its discretion, issue or deny the license accordingly, contingent upon the receipt of a bond as required by § 429-9 of this chapter.
F.
Whenever any application for a permit is denied, the applicant shall
be entitled to a hearing before the Municipal Council at which time
the applicant shall be permitted to introduce such evidence as may
be deemed relevant to such denial. Any applicant exercising the right
to appeal must file a written notice of appeal within 10 days of receiving
written notice of denial of a license to act as a pawnbroker, dealer
of secondhand goods and serve same on the Municipal Clerk, Police
Chief and Municipal Attorney.
G.
No license shall be assignable by the dealer.
For every reportable transaction between a dealer and the public,
the dealer shall:
A.
Require of each person selling or pawning precious metals or other secondhand goods acceptable identification as defined above in § 429-2, which will be recorded on the receipt retained by the dealer and subsequently forwarded to the local police department or request.
B.
Require each seller to execute a declaration of ownership, which
shall contain the following certification: "My signature confirms
that I am the sole legal owner of and am legally authorized to sell
the goods being sold. By signing below I certify that I did not obtain
and do not possess the identified goods through unlawful means. I
am the full age of eighteen years and the identification presented
is valid and correct."
C.
Record and issue to each person selling or pawning such goods on
a sequentially numbered receipt:
(1)
The name, address, and telephone number of the purchaser, including
the clerk or employee of the licensee making the purchase;
(2)
The name, address, date of birth, and telephone number of the seller
or sellers;
(3)
A photographed recording of the seller in a format acceptable to
the Chief of Police, along with a physical description of the seller,
including height and weight (approximate), hair color, eye color,
facial hair, if any, etc.;
(4)
A photographed recording of the seller's presented acceptable identification, as set forth in § 429-2, in a format acceptable by the Chief of Police;
(5)
A photographed recording of all items sold in a format acceptable
by the Chief of Police. When photographing, all items must be positioned
in a manner that makes them readily and easily identifiable. Items
should not be grouped together when photographing or imaging. Each
item should have its own photograph;
(6)
The receipt number;
(7)
A detailed, legible description of the item(s) and the manufacturer
and model of the item(s) if known; in the case of jewelry, the descriptions
must include style, length, color, design, and stones, if any; any
identifying marks, including numbers, dates, sizes, shapes, initials,
names, monograms, social security numbers engraved thereon, serial
numbers, series numbers, or any other information, which sets apart
the particular object from others of like kind;
(8)
The price paid for the purchase or pawn of the item(s);
(9)
If precious metals, the net weight in terms of pounds Troy, pennyweight
(Troy) or kilograms/grams; fineness in terms of karats for gold, and
sterling or coin for silver, in accordance with N.J.S.A. 51:5-1 and
51:6-1 et seq.;
(10)
The time and date of the transaction.
D.
The information outlined in Subsection C above must additionally be electronically documented through the use of an electronic database system authorized by the Chief of Police. Installation and training in this software will be made mandatory as of the effective date of this chapter and licensing will be conditional upon compliance with proper use of the system as described herein. These records shall be subject to the inspection of any authorized police officer or any sworn law enforcement officer acting in the performance of his or her duty as set forth in Subsection F below. Through the use of applicably required computer equipment, and using the electronic format approved by the Chief of Police, every dealer shall enter all reportable transactions into the electronic database by the end of the close of business on the same date as the purchase or receipt of property for pawn or consignment. The information entered must contain all pertinent information outlined in Subsection C above.
E.
In the event of a database failure, or dealer's computer equipment malfunction, all transaction information is required to be submitted on paper forms approved by the Chief of Police within 24 hours from the date of purchase. In the event that paper forms are used, the dealer is responsible to enter all transaction information set forth in Subsection C above into the database as soon as possible upon the dealer's equipment being repaired or replaced, or the database coming back into service. Failure by the dealer to properly maintain computer equipment in a reasonable fashion, or failure by the dealer to replace faulty computer equipment, may result in the dealer being cited for a violation of this chapter and subsequently being subject to the penalties for failing to doing so including revocation of the dealer's license as described in § 429-8.
F.
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
reportable transactions of precious metals or other secondhand goods,
as well as the articles purchased or received and, where necessary,
relinquish custody of those articles.
A.
All precious metals, jewelry, and other secondhand goods purchased, received for pawn, or received for consignment as described above, are to be made available for inspection by the Chief of Police or designee thereof at the designated business address for a period of at least 10 calendar days from the date the transaction information is actually reported to the Chief of Police in the approved manner described above in § 429-5. All precious metal or other secondhand goods subject to inspection must remain in the same condition as when purchased or received for pawn and shall not be sold, disposed of, changed, modified, or melted by the dealer until the ten-day retention period has expired.
A.
No dealer shall purchase any item covered by this chapter from any
person under the age of 18 or in the absence of providing prior notification
of such purchase to the Chief of Police or business designee identifying
the individual from whom such purchase is to be made and the item
to be purchased.
B.
No person, partnership, limited-liability company, corporation or other entity shall place or cause to be placed any advertisement or sign for purchase of such articles or secondhand goods referenced in § 429-2 without stating in the advertisement or sign the license number issued to a person or entity by the municipality. In any print advertisement, the license number shall appear in type no smaller than eight-point in the lower-right-hand corner of the advertisement. In any advertisement in electronic media, the license number shall be visually or audibly stated. Failure to state or indicate the license number shall be a violation of this chapter and shall be subject to the penalties established in § 429-12.
A.
The Chief of Police or a designee thereof is hereby empowered to temporarily suspend for cause any dealer's license and rights to operate hereunder. This penalty shall be in addition to any fines and penalties the dealer may incur pursuant to § 429-12 of this chapter.
(1)
Grounds for suspension. The following shall constitute grounds for
suspension: violation of any provisions of this chapter, including
failure to comply with any training or fees associated with the electronic
database software system in use by the municipality; violation of
any other statute, regulation, or local ordinance; or any other illegal,
improper, or fraudulent activity.
(2)
Procedure for suspension. Upon determination that appropriate grounds
exist and that a suspension is warranted, the Chief of Police or a
designee thereof shall issue a written notice of suspension of license
to the offending dealer and to the Municipal Clerk, which shall set
forth the grounds for the suspension and notify the dealer of his
or her right to appeal pursuant to this subsection. A temporary suspension
shall issue immediately, pending the outcome of any appeal taken.
Suspended dealers must immediately cease engaging in the business
of purchasing for resale, receiving for pawn, and/or selling of precious
metals and/or other secondhand goods in the municipality until reinstatement.
The dealer may appeal the suspension to the Municipal Council upon
serving written notice on the Municipal Clerk within 10 days of receiving
the written notice of suspension of its desire to appeal the determination
of the Chief of Police. Thereafter, the dealer will be scheduled to
appear before the Municipal Council at a date, time and place to be
designated in a notice served on the dealer by the Municipal Clerk
to show cause why such license should not be suspended or revoked.
Such notice shall be served upon the dealer by personal service or
by registered or certified mail addressed to the dealer's address
on record with the Municipal Clerk. In addition to either reinstating
the license, upholding the suspension or revoking the license, the
Municipal Council may impose such conditions and safeguards for the
continuation of the license as it may deem necessary to provide for
the public health, safety and welfare.
(3)
Reinstatement. Suspended dealers may be reinstated only when the
grounds leading to the suspension have, in the determination of the
Municipal Council, been cured, corrected, or appropriately rectified.
B.
Revocation. A license issued under this chapter may be revoked by the Municipal Council upon written recommendation from the Chief of Police or the Chief's designee that the dealer is no longer qualified, capable or competent to comply with the requirements of this chapter. This penalty shall be in addition to any fines and penalties the dealer may incur under § 429-12.
(1)
Grounds for revocation. The following shall constitute grounds for
revocation: a third violation under this chapter; a second violation
under this chapter less than one year after an earlier violation under
this chapter; conviction for a criminal offense within this or any
jurisdiction; or multiple violations of any other regulations or local
ordinances within this or any jurisdiction.
(2)
Procedure for revocation. Upon a determination that appropriate grounds
exist and that a revocation is warranted, the Chief of Police or the
Chief's designee shall so report to the Municipal Clerk in writing.
A temporary suspension will immediately and automatically issue, if
one is not already in effect, pending the outcome of the charge. The
Municipal Council shall review the stated grounds for revocation and
shall issue an appropriate disposition of either suspension, revocation,
or reinstatement. If it is determined that revocation is the appropriate
disposition, the grounds therefor shall be set forth in writing in
the form of a notice of revocation, which shall be provided to the
dealer. The notice shall advise the dealer of the right to appeal.
The dealer may appeal the revocation to the Municipal Council upon
serving written notice on the Municipal Clerk within 10 days of receiving
the written notice of revocation of its desire to appeal the revocation.
Thereafter, the dealer will be scheduled to appear before the Municipal
Council at a date, time and place to be designated in a notice served
on the dealer by the Municipal Clerk to show cause why such license
should not be revoked. Such notice shall be served upon the dealer
by personal service or by registered or certified mail addressed to
the dealer's address on record with the Municipal Clerk. In addition
to either reinstating the license, upholding the suspension or revoking
the license, the Municipal Council may impose such conditions and
safeguards for the continuation of the license as it may deem necessary
to provide for the public health, safety and welfare. If determined
that suspension is the appropriate disposition, the dealer shall be
so notified in writing and shall be advised of the right to appeal.
Following revocation, the dealer must relinquish his or her license
and must immediately and indefinitely cease operating as a dealer
of precious metals or other secondhand goods within the municipality.
C.
Appeal. Any applicant wishing to appeal a suspension or revocation
shall be entitled to a hearing as set forth above. Any applicant exercising
the right to appeal must file a written notice of appeal within 10
days of receiving written notice of revocation or suspension of license.
D.
A dealer shall have the right to change the location of the licensed
business, provided that he or she notifies the Municipal Clerk and
Police Chief, in writing, of the street address of said new location.
Each dealer covered under this chapter shall deliver a bond
to the Municipal Clerk executed by the applicant as principal and
executed by a surety company authorized to do business under the laws
of the State of New Jersey as surety. The bond shall be subject to
review and approval by the Municipal Attorney, as defined in N.J.S.A.
40A:9-139, and shall be in the penal sum of $10,000, conditioned for
the due and proper observance of and compliance with the provisions
and requirements of all ordinances of the municipality in force or
which may be adopted respecting the conduct of this business and conditioned
also that the bond shall be and remain for the benefit of any person
or persons who shall have received judgment against the dealer licensed
under this chapter, which damage shall be established by a judgment
of a court of proper jurisdiction. Said bond shall contain the following
language: "The obligation of this bond shall, in addition to the City
of Clifton, be and remain for the benefit of any person who shall
obtain a judgment against obligor as a result of damage sustained
in operation pursuant to any license granted under this chapter."
Said bond shall be kept for a minimum of one year from the date of
issuance of license and must be renewed annually along with the license.
A.
A nonrefundable fee for initial application and license for a pawnbroker, dealer in precious metals or other secondhand goods as covered under this chapter is $1,000. The annual renewal fee for a license is $1,000. These fees are separate from and in addition to any fees the dealer must pay in relation to the mandatory electronic database system designated by the Chief of Police, as provided by § 429-5D. Payments are to be made in the manner directed by the Municipal Clerk.
B.
Licenses issued pursuant to this chapter are valid for one year,
from January 1 through December 31. Initial applications and applications
for renewal must be submitted no later than October 1.
A.
Nothing in this chapter shall be construed to require the obtaining
of a license by any charitable or religious society that shall conduct
sales of personal property or Christmas trees when the proceeds thereof
shall be applied to the payment of the expenses thereof and to the
charitable or religious object for which the society exists.
B.
Nothing in this chapter shall be construed to require the obtaining
of a license by any art, antique or historical society that conducts
an exhibition and sale of art objects, pictures, paintings, prints,
historical articles and furniture generally known and designated as
antiques and kindred objects.
Violation of any provision of this chapter by any dealer shall, upon conviction thereof, be punished by a fine not more than $2,000, or by a term of imprisonment for a term not exceeding 90 days, or a period of community service not exceeding 90 days in addition to a suspension or revocation of operating license as provided in § 429-8 above. Each and every violation shall be considered a separate violation. Each violation may result in an additional suspension period. Any person who is found guilty 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 fine as a repeat offender and, in addition, may be subject to revocation proceedings as provided in § 429-8. 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.
A.
Effective January 1, 2017, no existing licensee may continue to operate
without having been re-licensed pursuant to this chapter. No new business
requiring a license shall operate without having first obtained a
valid license pursuant to the terms and conditions set forth herein.
B.
Nothing contained in this chapter is intended to replace any preexisting
statutory requirements governing pawnbrokers, as in N.J.S.A. 45:22-1
et seq., the sale of precious metals as in N.J.S.A. 51:6A-1 et seq.,
the sale of secondhand jewelry as in N.J.S.A. 2C:21-36 et seq., or
any other statutory provision regarding any subject matter addressed
herein.
