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HomeMy WebLinkAbout2000-11-07; City Council; 15951; Repeal Of Second Hand Dealer Ordinance- clTY OF CARLSBAD - AGENDn BILL AB# 45,s gr TITLE: DEPT. HD. MTG. i \- 7 --=I . REPEAL OF SECONDHAND DEALER ORDINANCE c’Ty ATpI* 2% DEPT. CA/POLICE CITY MGRTQ? RECOMMENDED ACTION: introduce Ordinance No. fV%%l repealing Chapter 5.40 of the Carlsbad Municipal Code pertaining to Secondhand Dealers. ITEM EXPLANATION: The City’s current Secondhand Dealer Ordinance was enacted at a time when the provisions in the California Business and Professions Code pertaining to secondhand dealers were less comprehensive. These provisions have since evolved to the point that the City’s Ordinance now largely duplicates and, in some instances, conflicts with them. This has raised concerns about preemption and about the potential for confusing local secondhand businesses with overlapping regulatory schemes. To avoid these concerns, the Police Department is recommending that the Ordinance be repealed. The goal of both the Ordinance and Business and Professions Code provisions is to prevent stolen property from being acquired and sold by secondhand businesses. Because the Business and Professions Code provisions provide the Police Department with the same tools as the City’s Ordinance (e.g., licensing, reporting, etc.), the Police Department believes that repealing the City’s Ordinance will not hinder the achievement of this goal. Further, the Police Department is preparing to launch an educational campaign, which will notify local secondhand businesses of the requirements of state law and assist them in complying with it. FISCAL IMPACT: No fiscal impact is anticipated from the repeal of the Secondhand Dealer Ordinance. In addition, repealing the Ordinance will not eliminate the need for local secondhand businesses to obtain a City business license and, consequently, should not affect business license revenues. ENVIRONMENTAL REVIEW: Pursuant to Public Resources Code section 21065 and CEQA Guidelines section 15378, the repeal of the Secondhand Dealer Ordinance does not constitute a “project” within the meaning of CEQA and, therefore, does not require environmental review. I EXHIBITS: 1. Ordinance No. MS 56 - 2. Secondhand Dealer Ordinance . 1 ORDINANCE NO. ~~-561 2 3 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CARLSBAD REPEALING CHAPTER 5.40 OF THE CARLSBAD MUNICIPAL CODE PERTAINING TO SECONDHAND DEALERS 4 The City Council of the City of Carlsbad, California, does ordain as follows: 5 SECTION 1: That Chapter 5.40 of the Carlsbad Municipal Code is 6 7 repealed. 6 EFFECTIVE DATE: This ordinance shall be effective thirty days after its 9 adoption, and the City Clerk shall certify the adoption of this ordinance and cause it to 10 be published at least once in a newspaper of general circulation in the City of Carlsbad 11 within fifteen days after its adoption. 12 9 gj mw03 yzr; uag 13 a00 VW% i&U SOS4 14 .CdB nrU'0 9 IS" 15 atm$ $$z 16 09$ I= aW2 >r 17 El 5 18 INTRODUCED AND FIRST READ at a regular meeting of the Carlsbad City Council on the 7th day Of November ,2000, and thereafter PASSED AND ADOPTED at a regular meeting of the City Council of the City of Carlsbad on the day of I 2000, by the following vote, to wit: AYES: NOES: 19 20 21 22 23 24 25 26 27 28 ABSENT: APPROVED AS TO FORM AND LEGALITY RONALD R. BALL, City Attorney ATTEST: CLAUDE A. LEWIS, Mayor LORRAINE M. WOOD, City Clerk (SEAL) Chapter 5.40 SECOND- DEALERS 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 5.40.170 Purpose and intent. Definitions. License required. Application. Investigation and issuance of license. Additional grounds for denial, license suspension or revocation, Appiicution fee. Terms of license renewal. Records of dealer. Records of chief of police. Retention of goods period. Goods not to be altered. Goods released by the chief of police. Hold-over by chief of police. Export. Exceptions. Violation-Misdemeanor. 5.40.010 Purpose and intent. The city council finds that secondhand busi- nesses provide a means of disposing of stolen goods. Investigation by police agencies reveals that new, used and stolen property are acquired and sold by secondhand businesses. Because sec- ondhand businesses can be ready vehicles for the disposal of stolen goods, such businesses should be subject to controls which will decrease the potential trafIic in such stolen goods. It is the intent of this chapter to preclude secondhand businesses from being depositories for stolen goods by providing control over the goods pur- chased and sold by secondhand businesses, especially such goods that are subject to theft and subsequent disposal by way of sale. (Ord. 6064 $1 ml-09 1982) 5.40.010 5.40.020 Definitions. For the purposes of this chapter, the following definitions shall apply: (a) A “secondhand dealer” includes any per- son, copartnership, firm, or corporation whose business is buying, selhng, trading, taking in pawn, accepting for sale on consignment, accept- ing for auctioning or auctioning secondhand per- sonal property. For the purposes of this chapter, “secondhand dealer” includes antique dealers and pawnbrokers but does not include any per- son or other entity who participates in any annual or semiannual fare sponsored by a non- profit corporation or association and approved by the city council, unless such person or entity is otherwise a secondhand dealer. (b) “Secondhand property” means personal property of which prior use has been made. (Ord. 6064 9 1 (part), I982) 5.40.030 License required. It shall be unlawful for any person to engage in the business of a secondhand dealer in the city unless such person has been issued a license as provided in this chapter. (Ord. 6064 $ 1 (part), 1982) 5.40.040 Application. An applicant shall submit his 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, 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” includes the applicant and all persons who share in the profits of the business on the basis of gross or net revenue, including landlords, lessors, lessees and the owner of the building, fixtures or 191 5.40.040 equipment. The application shall also be accom- panied by fingerprints of persons financially interested (Ord. 6064 $1 (part), 1982) 5.40.050 Investigation and issuance of license. The chief of police shall make such investiga- tion as is necessary to determine the background of the applicant and other persons financially interested. The police chief shah issue the license unless he finds that the applicant or any person 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. (Ord 6064 8 1 (part), 1982) 5.40.060 Additional grounds for denial, license suspfmion or revocation. (a) The police chief may deny the application for a license, suspend the license for thirty days or less, or revoke the license of any secondhand dealer, if the location of the business is contrary to the provisions of this code, if the health, wel- fare or safety of the community warrant such denial, suspension or revocation or if the appli- cant or licensee or any employee, agent or repre- sentative thereof has: (1) Knowingly made any false, misleading or fraudulent statement of a material fact in the application or in any record or report required to be filed under this chapter; or (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 rea- sonable opportunity to be heard on the suspen- sion or revocation. (Ord. 6064 9 1 (part), 1982) 540.070 Application fee. A nonrefundable license application.fee of one hundred dollars shall be ‘paid at the time the hcense application is filed. This fee shall be paid to defray the costs of investigation under this chapter. The fee required by this section shah 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 Chap- ters 5.04 and 5.08 of this code. (Ord. 6064 8 1 (PW, 1982) 540.080 Terms of license renewal. The license issued pursuant to this chapter shah be valid for one year Corn the date of issu- ance. 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 license. A renewal fee of fifty dollars shall accompany the application. The renewal appiication shall include any changes in the information contained in the orig- inal license application. The chief of police shah grant or deny the renewal on the same basis as an original application. (Ord. 6064 $ I (part), 1982) 540.090 Records of dealer. At the end of each day every dealer shall file with the chief of police properiy 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 tripli- cate, written, printed or typed in a legible man- ner. 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 and description of the vehicle in which the goods were delivered to the dealer or the driver’s license or identification card number of the person; (b) A description of the thing or things pur- chased by the name of the article, the name of the manufacturer, if known, and serial number or numbers, and initials or identifying marks or inscriptions if the article is one which is identified by such numbers, initials, marks or inscriptions; 192 . ! - (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 shah be kept on file at the place of business of the licensee for a period of one year and shah be available for inspection by any member of the police depart- ment during business bows, (e) This section shah 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 pre- viously reported such antiques or secondhand property to the appropriate police agency. The dealer acquiring such property shall upon demand by the police present satisfactory records of such prior reporting. (Ord. 6064 $ 1 (part), 1982) 5.40.100 Records of chief of police. The chief of police shah maintain a file of all records received pursuant to the terms of this chapter for a period oftwo years and such records shall be open to inspections by any peace officer of the state. @rd. 6064 5 1 (part), 1982) 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 ail secondhand personal property prior to any sale or disposal. (b) The thirty-day holding period shah com- mence 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 shah not apply to antiques or secondhand property which a dealer has acquired from another person who, under 5.40.090 applicable state and/or local laws, shah have pre viously held such antiques or secondhand prop- erty for the period prescribed by such laws. The dealer acquiring such property shall, upon demand by the chief of police or his agents, present satisfactory records that such antiques or secondhand property shall have been held for such required period. @rd. 6064 $1 (part), 1982) 5.40.120 Goods not to be altered. A secondhand dealer shall not allow any sec- ondhand property pledged to or purchased by him to be cleaned, altered, repaired, painted or otherwise changed in appearance until such sec- ondhand property has been held for the time required by this chapter or unless released by the chief of police or his agents. (Ord. 6064 6 1 (part), 1982) 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 satisfied that such prop erty is in the lawful possession of the secondhand dealer. (Ord. 6064 !j 1 (part), 1982) 5.40.140 Hold-order by chief of police. The chief of police or his agents may place a 0 hold-order for a period of forty-five days upon any property acquired by the secondhand dealer in the course of his business and upon release of such property the chief of police or his agents may require the secondhand dealer to keep a true record of such property and include therewith the true name and address of the person to whom such property was sold, or a record of any other method of disposition. The secondhand dealer shall keep for one year any record required under this section. (Ord. 6064 0 1 (part), 1982) 5.40.150 Export. A secondhand dealer shall not export from this city any secondhand property pledged to or 193 - . 540.150 received by such secondhand dealer in his capac- ity as secondhand dealer until the chief of police or his agents have inspected and released such property. (Ord. 6064 0 1 (part), 1982) 540.160 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 Caiifomia Motor Vehi- cle Department pursuant to the Vehicle Code, except that the records of dealers of purchases and sales of such articles made within the county shah 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 organ&d and oper- ated for religious, hospital, or charitable pur- poses 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 fmm the provi- sions of this law; (d) This section shah not apply to antiques or secondhand property which a dealer has acquired from another person who, under applicable state or local laws, shall have pre- viously 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 report- ing; (e) Tangible personal property acquired pur- suant to provisions of Business and Professions Code Section 21629; (f) The retention holding and reporting requirements of this chapter shah not apply to transactions involving coins, monetized bullion or commercial grade ingots of gold, silver or other precious metals. “Commercial grade ingots” means .99 fine ingots of gold, silver or platinum, or .925 fine sterling silver art bars and medallions, provided that the ingots, art bars and medallions are marked by the refiner or fabri- cator as to their assay fineness. (Ord. 6074 $1, 1984; Ord. 6064 $1 (part), 1982) 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 of not more than six months in the county jail or by both such fine and imprisonment. (Ord. 6064 0 1 (part), 1982) 194