[HISTORY: Adopted by the City Council of the City of Lexington by Ord.
No. 97-10 (§ 15-76 of the 1970 Code). Amendments noted
where applicable.]
A.
This chapter is enacted to secure and promote the health,
safety and general welfare of the inhabitants of the City.
B.
It hereby is declared that the business of purchasing
or otherwise dealing in antique, used or scrap jewelry and precious metals,
where such purchases are for resale in their original form or are changed
by remounting, melting, reforming, remodeling or recasting or for resale as
scrap or in bulk, is a business affecting the public health, safety and general
welfare.
For the purposes of this chapter, the following words and phrases shall
have the meanings respectively ascribed to them by this section:
Any person engaged in the business of purchasing secondhand precious
metals or gems, removing in any manner precious metals or gems from manufactured
articles not then owned by such person, or buying, acquiring or selling precious
metals or gems removed from such manufactured articles. "Dealer" shall mean
all employers and principals on whose behalf a purchase is made and any employee
or agent who makes any such purchase for or on behalf of his employer or principal.
This definition shall not be construed so as to include persons engaged in
the following:
Purchases of precious metals or gems directly from other dealers, manufacturers
or wholesalers for retail or wholesale inventories, provided that the selling
dealer has complied with the provisions of this chapter.
Purchases of precious metals or gems from a duly qualified fiduciary
who is disposing of the assets of an estate being administered by such fiduciary.
Acceptance by a retail merchant of trade-in merchandise previously sold
by such merchant to the person presenting that merchandise for trade-in.
Repairing, restoring or designing jewelry by a retail merchant, if such
activities are within his normal course of business.
Purchases of precious metals or gems by industrial refiners and manufacturers,
insofar as such purchases are made directly from retail merchants, wholesalers,
or dealers or by mail originating outside the state.
Persons regularly engaged in the business of purchasing and processing
nonprecious scrap metals which incidentally may contain traces of precious
metals recoverable as a by-product.
Any item containing precious or semiprecious stones customarily used
in jewelry.
Any item, except coins, composed in whole or in part of gold, silver,
platinum or platinum alloys.
It shall be unlawful for any dealer to purchase precious metals or gems
or make loans for which precious metals or gems are received and held as security
without first obtaining a permit from the Chief of Police or his designated
agent as provided herein and without complying with all other provisions of
this chapter. Possession of a permit in another jurisdiction shall not relieve
a dealer of the obligation to obtain the permit required herein.
A.
No person shall engage in the activities of a dealer
without first obtaining a permit from the Chief of Police or his designated
agent.
B.
To obtain a permit, the dealer shall file with the Chief
of Police an application form which shall include the dealer's full name and
any aliases, address, age, sex, and fingerprints; the name, address and telephone
number of the applicant's employer, if any; and the location of the dealer's
place of business. Upon filing this application and the payment of an application
fee of $200, the dealer shall be issued a permit by the Chief of Police or
his designee, provided that the applicant has not been convicted of a felony
or crime of moral turpitude within seven years prior to the date of application.
The permit shall be denied if the applicant has been denied a permit or has
had a permit revoked under any similar ordinance.
C.
Before a permit may be issued, the dealer must have all
weighing devices used in his business inspected and approved by the City or
state weights and measures official and present written evidence of such approval
to the Chief of Police.
D.
The permit shall be valid for one year from the date
issued and may be renewed in the same manner as such permit was initially
obtained with an annual permit fee of $200.
E.
If the business of the dealer is not operated without
interruption, with Saturdays, Sundays and recognized holidays excepted, the
dealer shall notify the Chief of Police of all closings and reopenings of
such business. The business of a dealer shall be conducted only from the fixed
and permanent location specified in his application for a permit.
F.
Each dealer, at the time of obtaining such permit, shall
enter into a recognizance to the City secured by a corporate surety authorized
to do business in the state, in the penal sum of $10,000, conditioned upon
due observance of the terms of this chapter. In lieu of a bond, a dealer may
cause to be issued by a bank authorized to do business in the state a letter
of credit in favor of the City in the amount of $10,000. A single bond or
letter of credit may be written or issued to cover the employer or principal
and all employees and all transactions occurring at a single location.
The permit issued under this chapter shall be publicly displayed by
the dealer. The permit is personal to the dealer to whom it was issued and
is not assignable.
It shall be unlawful for any dealer to sell, exchange, barter or remove
from the place from which such business is conducted or to change the form
of any such items by remounting, melting, cutting, smashing or otherwise changing
the form of any items purchased which fall within the definition of precious
metals, gems and jewels for a minimum period of 10 days from the date and
time of filing the daily report required under this chapter.
The dealer shall keep a log in duplicate upon which shall be entered
a clear and accurate description of all items of precious metals, gems and
jewels purchased, including, where applicable, the weight, serial numbers,
names, initials, monograms or any other identification marks which appear
on any such item, the date of purchase and the amount of money paid, and the
name and complete residence address, age, sex, race and driver's license number
or Social Security number of the seller. The seller and the dealer shall deliver
to the Chief of Police a copy of the log of the previous day's business prior
to 12:00 noon of the day following the date of such transaction. The log of
the dealer shall be carefully preserved without alteration and shall be open
at all times to the inspection of the Chief of Police and any police officer
of the City, the Sheriff of the county, any member of the Sheriff's Department
of the county, any member of the Virginia State Police, and any other properly
identified police officer.
The dealer shall ascertain the name, address and age of each seller
by requiring the seller to verify the same by some form of identification
issued by a governmental agency which contains a picture or photograph of
the seller and at least one corroborating means of identification. No purchase
shall be made from any seller unable to verify identification as specified
in this section.
No dealer shall purchase from or make a loan to any seller who is under
the age of 18 years. No dealer shall purchase from or make a loan to any person
whom the dealer believes or has reason to believe is not the owner of the
items offered for sale or security.
Any person aggrieved by the dealer's violation of any of the provisions
of this chapter who shall recover a final judgment against such dealer may
maintain an action in his own name upon the bond and surety.
A.
Any person convicted of violating any of the provisions
of this chapter shall be guilty of a Class 2 misdemeanor for the first offense.
Upon conviction of any subsequent offense, he shall be guilty of a Class 1
misdemeanor.
B.
Upon the first conviction by any court of a dealer of
a violation of any of the provisions of this chapter, the Chief of Police
may revoke his permit to engage in business as a dealer under this chapter
for a period of one full year from the date such conviction becomes final.
Such revocation shall be mandatory upon a second conviction.
C.
Punishment for Class 2 and Class 1 misdemeanors shall
be as set forth in § 18.2-11 of the Code of Virginia.
