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Home My WebLink About2009-04-21; City Council; 19777; Amendment to CMC secion 5.08.120 PawnbrokersCITY OF CARLSBAD - AGENDA BILL AB# 19,777 MTG. 04/21/09 DEPT. CA AMENDMENT TO CARLSBAD MUNICIPAL CODE SECTION 5.08.120 - PAWNBROKERS DEPT. HEAD CITYATTY. <4&£- CITY MGR. t n - RECOMMENDED ACTION: Introduce Ordinance No. CS-027 amending Section 5.08.120 (Pawnbrokers) of the Carlsbad Municipal Code repealing the requirement for a written permit from the City Council. ITEM EXPLANATION: Business and Professions Code section 21625 et seq. provides for a uniform, statewide, state administered program of regulation of persons whose principal business is the buying, selling, trading, auctioneering, or taking in pawn of tangible personal property (jointly referred to as second-hand dealers). The Business and Professions Code and section 21300 of the Financial Code authorize the local chief of police, the sheriff or, where appropriate the police commission, to grant a license for a pawn business. In Carlsbad, the Police Chief would accept an application for a pawn business and after submitting the said application to the Department of Justice, and provided the applicant has not been convicted of any offense involving stolen property would grant the applicant a license to engage in the business of pawnbroker. If the Department of Justice does not respond or comment on the application within 30 days after submittal, the Police Chief may grant the applicant a license in the absence of any other violations of local law such as intentional misrepresentation on the permit application, or noncompliance with zoning, building, plumbing, electrical, fire or health regulations. The Business and Professions Code provides that personal property acquired by persons in the above stated businesses, including pawn, shall file reports which shall be correlated with other reports of city, county, and city and county law enforcement agencies, and further utilizing the services of the Department of Justice to aid in tracing and recovering stolen property. The Business and Professions Code procedures also aid the State Board of Equalization in detecting possible sales tax evasion. In enacting this legislation, the legislature specifically provided that it "shall not be superseded or supplanted by the provisions of any ordinance or charter of any city, county or city and county". In light of the Business and Professions Code legislation and its preemption of city regulation of pawn dealers, in 2000 the Carlsbad Municipal Code Chapter 5.40 regulating pawnbrokers was repealed. However, CMC Chapter 5.08, section 5.08.120 of the code still contains a requirement that any person wishing to engage in the business of being a pawnbroker shall first obtain a written permit from the City Council to do so, and if permitted, shall pay a business license fee of $150 per year. It is now recommended that the provision for City Council issuance of a permit be repealed since it is inconsistent with state law. Should City Council approve the amendment to section 5.08.120, pawn businesses would still be required to obtain a business license for a fee of $150 per year and obtain a pawnbrokers license from the Chief of Police. DEPARTMENT CONTACT: Ron Ball 760-434-2801 FOR CITY CLERKS USE ONLY. COUNCIL ACTION:APPROVED DENIED CONTINUED WITHDRAWN AMENDED D D D CONTINUED TO DATE SPECIFIC D CONTINUED TO DATE UNKNOWN D RETURNED TO STAFF D OTHER - SEE MINUTES D FISCAL IMPACT: There is no fiscal impact associated with this code amendment since the business license fee for pawn dealers will not change. ENVIRONMENTAL IMPACT: This ordinance amendment is not a "project" within the definition of the California Environmental Quality Act in that it does not have a direct or indirect impact on the physical environment under CEQA Regulation 153789(b). EXHIBITS: 1. Ordinance No. CS-027 2. Redlined CMC section 5.08.120 - Pawnbrokers 3. Amended CMC section 5.08.120 - Pawnbrokers 1 ORDINANCE NO. CS-027 2 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AMENDING CARLSBAD MUNICIPAL CODE SECTION - 5.08.120-PAWNBROKERS 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 22 WHEREAS, Carlsbad Municipal Code section 5.08.120 contains a requirement that any person wishing to engage in the business of being a pawnbroker shall first obtain a written permit from the City Council to do so; and WHEREAS, the Business and Professions Code regulates secondhand dealers, including pawnbrokers, and preempts city regulation of pawn businesses; and WHEREAS, the Business and Professions Code and the Financial Code now grant authority to license a pawn business to the local chief of police after review of an application to operate a pawn business by the Department of Justice; and WHEREAS, it is now recommended that the provision authorizing the City Council to grant issuance of a permit be repealed since it is inconsistent with state law; and WHEREAS, pawn businesses would still be required to obtain a business license for a fee of $150 per year and obtain a pawnbroker license from the Chief of Police. NOW, THEREFORE, the City Council of the City of Carlsbad ordains as follows: SECTION 1: That section 5.08.120 of the Carlsbad Municipal Code is 19 amended to read as follows: 20 5.08.120-Pawnbrokers 21 Any person engaging in the business of being a pawnbroker shall pay a business license fee of one hundred fifty dollars ($150) per year and obtain a pawnbroker license from the Chief of Police.23 (Ord. 6040 § 26,1967)24 25 26 27 /// 28 -1 - ,2) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 EFFECTIVE DATE: This ordinance shall be effective thirty days after its adoption; and the city clerk shall certify the adoption of this ordinance and cause it to be published at least once in a newspaper of general circulation in the City of Carlsbad within fifteen days after its adoption. INTRODUCED AND FIRST READ at a regular meeting of the Carlsbad City Council on the 21st day of April , 2009, and thereafter PASSED AND ADOPTED at a regular meeting of the City Council of the City of Carlsbad on the day of. AYES: NOES: ABSENT: APPROVED AS TO FORM AND LEGALITY: _, 2009, by the following vote, to wit: RONALD R. BALL, City Attorney CLAUDE A. LEWIS, Mayor ATTEST: LORRAINE M. WOOD, City Clerk (Seal) -2- I .5.08.120-PaWnbrokerS - - \ Formatted: Font: (Default) Arial, BoldT -(Formatted: Font: (Default) Arial Any person jengagjrigjn the business of being a pawnbrpker^hall pay a business _, - \ Deleted: wishing to license fee of one hundred fifty dollars ($150) per year and obtain a pawnbroker's " V j Deleted: license from the Police Chief^ (Ord. 6040 §26, 1967) Deleted: shall first obtain a written permit from the City Council so to do, and if permitted ( Deleted:. \ Formatted: Font: (Default) Arial 5.08.120-Pawnbrokers Any person engaging in the business of being a pawnbroker shall pay a business license fee of one hundred fifty dollars ($150) per year and obtain a pawnbroker's license from the Police Chief. (Ord. 6040 § 26, 1967)