HomeMy WebLinkAbout1982-03-02; City Council; 6918; City Ordinance - Secondhand DealersCIT. JF CARLSBAD — AGENDA dILL
MTG.03-02-82
TITLE:
CITY ORDINANCE - SECONDHAND DEALERS
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RECOMMENDED ACTION:
Adopt an amendment to Title 5 of the Carlsbad Municipal Code by the addition of
Chapter 5.40 to regulate secondhand dealers. The reconmended amendment is con-
sistent with state law.
The Police Department is requesting the ordinance be adopted because it has found
that existing state law does not sufficiently regulate secondhand businesses.
According to San Diego County Sheriff's sources, the City of Carlsbad is the only
city in the county that does not presently have a local ordinance regulating
secondhand dealers. The Police Department expects that the adoption of this
amendment will enable them to regulate local secondhand dealers in order to
identify and retrieve stolen property. Several items of stolen property have
been located in local secondhand businesses.
The reconmended amendment was prepared by the City Attorney's office and is
similar to the present San Diego County ordinances. The Police Chief recommends
the adoption of the amendment in the interest of the public welfare.
Fiscal Impact:
A license application fee of $100 has been reconmended to defray costs of back-
ground investigations by the Police Department. In addition, the individual
dealer would be responsible for providing "buy form" records. Additional cost
to the City would be for data entry of buy forms into the ARJIS system, which
is estimated to cost approximately $300 for one year. The additional operating
cost of $300 is proposed to be incorporated into the present operating budget of
the Police Department.
Exhibits:
1. Ordinance No. /
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ORDINANCE NO.6064
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AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, AMENDING TITLE 5 OF THE
CARLSBAD MUNICIPAL CODE BY THE ADDITION OF
CHAPTER 5.40 TO REGULATE SECONDHAND DEALERS.
The City Council of the City of Carlsbad, California
does ordafin as follows:
SECTION 1: That Title 5 of the Carlsbad Municipal Code
is amended byN^he addition of Chapter 5.40 to read as follows:
"Chapter
Sections:
5.40.010
5.40.020
5.40.030
5.40.040
5.40.050
5. 40. 060
5. 40. 070
5.40.080
5.40.090
5.40.100
5.40.110
5.40.120
5. 40. 130
5.40.140
5.40.150
5.40.160
5.40.1^0
SECONDHAND DtALERS
Purpose and indent.
Definitions.
LiceKseYfcequirec
n.
Investiga^Lon and "issuance of license.
AddVVionaI\grounds foir denial, license
suspension Hor revocation.
Appl\catioh Vee.
Terms o4-^liceNase jpenewal.
Records of deale
Records of chie;
Retention of
Goods not to
of police.
oSs period.
e altered.
Goods releasd by he chief of police.
Hold-order /by chief\of police.
Export,
Exceptior
Violations-misdemeanor)
5.40.010 Purpose and intent. The CVty Council of the
City of Carlsbad finds/that secondhand businesses provide a
means of disposing of/stolen goods. Investigation by police
agencies reveals thatr new, used and stolen property are acquired
and sold by secondhand businesses. Because secondhand
businesses can be jfeady vehicles for the disposal^ of stolen
goods, such businesses should be subject to contrails which will
decrease the potential traffic in such stolen goodJB. It is the
intent of this/ordinance to preclude secondhand businesses
from being de'positories for stolen goods by providing control
over the goods purchased and sold by secondhand businesses,
especially such goods that are subject to theft and subsequent
disposal by way of sale.
5.40.020 Definitions. For the purposes of this
chapter, the following definitions shall apply:
(a) A secondhand dealer, as defined, includes any
person, copartnership, firm, or corporation whose business is
buying, selling, trading, taking in pawn, accepting for sale on
consignment, accepting for auctioning or auctioning secondhand
personal property. For the purposes of this chapter secondhand
dealer includes antique dealers and pawnbrokers.5 (b) Secondhand property means personal property of
.. which prior use has been made.o
„ 5.40.030 License required. It shall be unlawful for
any person to engage in the business of a secondhand dealer in
p. the City unless such person has been issued a license as
provided in this chapter.
9 5.40.040 Application. An applicant shall submit his
-0 application for a license to the chief of police, which
application shall be under oath, and shall include, among other
,, things, the true names and addresses of all persons financially
interested in the business. The past criminal record, if any,
, p of all persons financially or otherwise interested in the
business shall be shown on such application if such record shows
,, that any such person has been convicted of any offense involving
theft, stolen property, or fraud. The term "persons financially
interested" shall include the applicant and all persons who
share in the profits of the business on the basis of gross or
-,g net revenue, including landlords, lessors, lessees and the owner
of the building, fixtures or equipment. The application shall
also be accompanied by fingerprints of persons financially
interested.
17 5.40.050 Investigation and issuance of license. The
chief of police shall make such investigation as is necessary to
determine the background of the applicant and other persons
financially interested. The police chief shall issue the
license unless he finds that the applicant or any person
2Q financially interested has been convicted of any theft, related
offense or any offense relating to stolen property including but
not limited to receiving stolen property or attempt to receive
stolen property.
22 5.40.060 Additional grounds for denial, license
23 suspension or revocation7
(a)The police chief may deny the application for a
24 license, suspend the license for thirty days or less, or revoke
the license of any secondhand dealer, if the location of the
25 business is contrary to the provisions of this code, if the
health, welfare or safety of the community warrant such denial,
suspension or revocation or if the applicant or licensee or any
employee, agent or representative thereof has:
(1) Knowingly made any false, misleading or
fraudulent statement of a material fact in the application or in
23 any record or report required to be filed under this ordinance;
or
2.
(2) Violated any provision of this chapter,
(b) No suspension or revocation shall be effective
until the police chief gives ten days written notice of the
basis for the suspension or revocation and provides the licensee
with a reasonable opportunity to be heard on the suspension or
revocation.4
5.40.070 Application fee. A non-refundable license5 application fee of $100.00 shall be paid at the time the license
application is filed. This fee shall be paid to defray the
costs of investigation under this chapter. The fee required by
„ this section shall not be required for renewal of the license.
The fee shall not be in lieu of, and shall be in addition to the
_ business license tax levied according to Chapters 5.04 and 5.08
of this code.
g 5.40.080 Terras of license renewal. The license issued
10 pursuant to this chapter shall be valid for one year from the
date of issuance. A license may be renewed annually if on or
_.. before the thirtieth day prior to the expiration date of the
currently valid license, the licensee applies for renewal of the
, p license. A renewal fee of $50 shall accompany the application.
The renewal application shall include any changes on the
,, information contained in the original license application. The
chief of police shall grant or deny the renewal on the same basis
,. as an original application.
15 5.40.090 Records of dealer. At the end of each day
every dealer shall file with the chief of police properly
completed "buy form" records for all property received during
such day by such dealer. Such "buy form" records shall be on
forms furnished by the dealer. The "buy form" records shall be
made in triplicate, written, printed or typed in a legible
manner. The "buy form" shall contain the following information:
(a) The name of the person from whom the goods were
purchased, together with the address, and description of the
person from whom such goods were purchased and the license number
2Q and description of the vehicle in which the goods were delivered
to the dealer.
2T (b) A description of the thing or things purchased by
the name of the article, the name of the manufacturer, if known,
22 and serial number or numbers, and initials or identifying marks
or inscriptions if the article is one which is identified by
23 such numbers, initials, marks or inscriptions.
(c) Such other information deemed necessary by the
chief of police to assist in the detection of stolen property.
(d) A copy of each "buy form" record shall be kept on
25 file at the place of business of the licensee for a period of
one year and shall be available for inspection by any member of
the police department during business hours.
(e) This section shall not apply to antiques or
2«v secondhand property which a dealer has acquired from another
person who under applicable state and/or local laws shall have
previously reported such antiques or secondhand property to the
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appropriate police agency. The dealer acquiring such property
shall upon demand by the police present satisfactory records of
such prior reporting.
5.40.100 Records of chief of police. The chief of
. police shall maintain a file of all records received pursuant to
the terms of this chapter for a period of two years and such
records shall be open to inspections by any peace officer of this
State.
5.40.110 Retention of goods period. Except as
„ otherwise provided herein:
(a) Every dealer shall retain in his possession for a
period of thirty days after acquisition by him all secondhand
personal property prior to any sale or disposal.
(b) The thirty day holding period shall commence with
the date that the "buy form" report of its acquisition is filed
with the chief of police by the dealer. Under such conditions
as he may require, the chief of police or his agents may for good
.,., cause authorize prior disposition of any such property in lieu
of holding the property for the prescribed thirty days.
(c) This section shall not apply to antiques or
secondhand property which a dealer has acquired from another
..., person who, under applicable state and/or local laws, shall have
previously held such antiques or secondhand property for the
.,, period prescribed by such laws. The dealer acquiring such
property shall, upon demand by the chief of police or his
-JK agents, present satisfactory records that such antiques or
secondhand property shall have been held for such required
16 period.
•i« 5.40.120 Goods not to be altered. A secondhand dealer
shall not allow any secondhand property pledged to or purchased
••a by him to be cleaned, altered, repaired, painted or otherwise
changed in appearance until such secondhand property has been
held for the time required by this chapter or unless released by
the chief of police or his agents.
20 5.40.130 Goods released by the chief of police. The
chief of police or his agents may release any property required
to be held by this chapter, if after an inspection he is
22 satisfied that such property is in the lawful possession of the
secondhand dealer.
23 5.40.140 Hold-order by chief of police. The chief of
24 police or his agents may place a hold-order for a period of
forty-five days upon any property acquired by the secondhand
25 dealer in the course of his business and upon release of such
property the chief of police or his agents may require the
25 secondhand dealer to keep a true record of such property and
include therewith the true name and address of the person to whom
27 such property was sold, or a record of any other method of
disposition. The secondhand dealer shall keep for one year any
28 record required under this section.
4.
5.40.150 Export. A secondhand dealer shall not export
from this City any secondhand property pledged to or received by
such secondhand dealer in his capacity as secondhand dealer
„ until the chief of police or his agents have inspected and
released such property.
5.40.160 Exceptions. The following are excluded from
the operation of this chapter:
(a) Secondhand motor vehicles, the transfer of
ownership of which is required to be made a matter of record
with the California Motor Vehicle Department pursuant to the
Vehicle Code, except that the records of dealers of purchases
and sales of such articles made within the County shall be open
to the inspection of the chief of police or his agents.
(b) Receipt or sale of a secondhand article by any
person that received such secondhand article as part payment of
a new article, if such person is the authorized representative
or agent of the manufacturer of or regularly deals in the new
article sold.
(c) Any person acting as a dealer for the exclusive
benefit of any community chest fund, foundation, or corporation
organized and operated for religious, hospital, or charitable
purposes and not conducted for a profit, where no part of the
gross receipts or net earnings inure to the benefit of any
private shareholder or person participating in the organization
or conduct of the sale or exchange, is exempted from the
provisions of this law.
15 (d) This section shall not apply to antiques or
secondhand property which a dealer has acquired from another
person who, under applicable state or local laws, shall have
previously reported such antiques or secondhand property to the
appropriate police agency. The dealer acquiring such property
shall, upon demand by the chief of police, or his agents,
present satisfactory records of such prior reporting.
(e) Tangible personal property acquired pursuant to
provisions of Business and Professions Code Section 21629.
20 5.40.170 Violation-misdemeanor. Any person violating
the provisions of this chapter shall be deemed guilty of a
misdemeanor and upon conviction shall be fined in an amount not
to exceed Five Hundred Dollars or by imprisonment for a period
22 of not more than six months in the County Jail or by both such
fine and imprisonment.
23 EFFECTIVE DATE: This ordinance shall be effective
24 thirty days after its adoption, and the City Clerk shall certify
25 to the adoption of this ordinance and cause it to be published
26 at least once in the Carlsbad Journal within fifteen days after
27 its adoption.
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INTRODUCED AND FIRST READ at a regular meeting of the
Carlsbad City Council held on the day of ,
1982, and thereafter
PASSED AND ADOPTED at a regular meeting of said Council
5 held on the day of , 1982, by the
following vote, to wit:
7 AYES:
8 NOES:
ABSENT:
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12 RONALD C. PACKARD, Mayor
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15 ATTEST:
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ALETHA L. RAUTENKRANZ, City Clerk
(SEAL)
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