CHAPTER 11. BUSINESS LICENSES AND REGULATIONSCHAPTER 11. BUSINESS LICENSES AND REGULATIONS\Article VIII. Pawnbrokers And Dealers In Precious Metals

Pawnbroker- means any person who loans money on deposit or pledge of personal property or other valuable thing, other than intangible personal property, or who deals in the purchase of personal property on the condition of selling the same back again at a stipulated price.  A Pawnbroker does not include any person operating under the supervision of the State Banking Commissioner, Credit Union Administrator or Consumer Credit Commissioner of the State of Kansas.

Person- means any individual, firm, company, partnership, corporation or association.

Precious metal- means gold, silver or platinum group metals or any used articles or other used personal property containing such metals, but shall not include coins purchased for their numismatic value rather than their metal content or ingots or other industrial residue or by-products composed of such metals purchased from manufacturing firms.

Precious metal dealer- means any person who engages in the business of purchasing precious metal for the purpose of reselling such metal in any form.

(Code 2015)

A.    No person shall engage or continue in business as a pawnbroker or precious metal dealer without first obtaining a license therefore from the City Clerk of the City of Ottawa.

B.    Application for a license shall be in writing and shall state the full name and place of residence of the applicant.  If the applicant is a partnership, the application shall contain the name and place of residence of each member thereof or, if a corporation or association, of each officer, shareholder or member thereof.  The application shall include the address of the places where the business is to be conducted, the hours and days of the week during which the applicant proposes to engage in the business of pawn broking or dealing in precious metals at each such place, and such other information as may be necessary to determine the applicant’s qualifications for a license in accordance with the provisions of this ordinance.  Each applicant shall also submit with the application.

C.    A statement that the applicant is the holder of a valid registration certificate issued by the Director of Revenue of the State of Kansas pursuant to K.S.A. 79-3608 for each place of business for which application for a license is made.

D.    A detailed inventory and description of all goods, wares, merchandise, precious metals or other property held in pledge or for sale at the time of the application at each place of business stated therein, indicating whether the same was received in pledge, purchased as secondhand merchandise or precious metal purchased for resale.

E.    The license application shall be in a form approved by the Attorney General.  Each application shall be accompanied by a fee of twenty-five dollars ($25.00) which shall be paid annually upon renewal of the license.  All such fees received by the City Clerk shall be deposited in the City’s General Fund.

(Code 2015)

No License or renewal thereof shall be granted to:

A.    Any person who is not a citizen of the United States.

B.    Any person who has not been an actual resident of the State of Kansas for at least two (2) years immediately preceding the date of his application.

C.    Any person who has been convicted of or who has pleaded guilty to a felony under the laws of this State, or any other state, or of the United States, or shall have forfeited his bond to appear in court to answer charges for any such offense within the ten (10) years immediately prior to such person’s application for a license.

D.    Any person whose license has been revoked for cause under the provisions of this ordinance or K.S.A. 16-706 et seq.

E.    Any person is not at least twenty-one (21) years of age.

F.    Any person who at the time of application for renewal of any license issued hereunder would not be eligible for such license upon a first application.

G.    Any person who does not own the premises for which a license is sought, unless he has a written lease therefore for at least three-fourths (3/4) of the period for which the license is to be issued.

H.    Any person whose spouse would be ineligible to receive a license hereunder for any reason other than the age, citizenship and residence requirements.

I.     Any partnership, unless each of the partners shall be eligible to receive a license as an individual.

J.     A corporation, if any officer, manager, director or stockholder would be ineligible to receive a license as an individual.

(Code 2015)

The license of a pawnbroker or precious metal dealer shall state the address at which the business is to be conducted and shall state fully the name of the licensee.  If the licensee is a partnership, the license shall state the names of the members thereof and, if a corporation, the date and place of its incorporation and the names of all shareholders thereof.  Such license shall be kept conspicuously posted in the place of business of the licensee and shall not be transferable or assignable.  Not more than one place of business shall be maintained under the same license, but more than one (1) license may be issued to the same licensee upon compliance with all the provisions of this act governing the issuance of an initial license.

(Code 2015)

Whenever a licensee shall change his place of business to another location within the corporate limits of the City of Ottawa, he/she shall immediately give written notice thereof to the City Clerk.  The City Clerk shall then issue a duplicate license which, in addition to all the information appearing on the old license, a record of the change of location and the date thereof, which new license shall be authority for the operation of such business under such license at such location.  The licensee shall return the old license to the City Clerk as soon as the new license has been received and the change in location has taken place.

(Code 2015)

Each licensee shall keep and use in the licensee’s business such books, accounts and records as will enable the City Clerk or his designee, or the Chief of Police or his designee, to determine whether such licensee is complying with the provisions of this ordinance.  The City Clerk or his designee, or the Chief of Police or his designee, may examine or cause to be examined the books, accounts, records and files used by any licensee or by any other person engaged in the business of pawn broking or dealing in precious metals, irrespective of whether such person acts or claims to act as principal, agent or broker, or under or without authority of this ordinance.  The City Clerk or his designee, and the Chief of Police or his designee, shall be given free access to all such books, accounts, papers, records, files, safes and vaults.

(Code 2015)

Any license issued under this ordinance may be suspended or revoked, after due notice and public hearing, if the licensee:

A.    Has failed to pay the annual license fee.

B.    Has violated any provisions of this act.

C.    Has been convicted of or pleaded guilty to a felony under the laws of this State, or any other state, or of the United States, or shall have forfeited his bond to appear in court to answer charges for any such offense, if such conviction or plea occurred subsequent to or within the ten (10) years immediately prior to the date of the licensee’s application for the license.

Any license issued under this ordinance shall be revoked, after due notice and hearing thereon, if it shall be proved at the hearing that the licensee sold any handgun to a minor.

Said hearing herein provided shall be held within thirty (30) days after notice thereof, and the alleged violation determined by written order of the City Manager within sixty (60) days after such hearing is concluded; but no revocation or suspension or surrender of any license shall impair or affect the obligation of any preexisting lawful contract between the licensee and any borrower.

(Code 2015)

A.    On or before Tuesday of each week, every pawnbroker or precious metal dealer shall report the description of all property received in pledge or purchased as a pawnbroker or precious metal dealer during the preceding calendar week, in whatever quantity received, and such report shall be made in writing to the Chief of Police.  Such report shall include all property purchased as secondhand merchandise at wholesale, secondhand merchandise taken in for sale or possessed on consignment for sale and secondhand merchandise taken in trade.  No such report need be made concerning property or merchandise acquired from another pawnbroker or precious metal dealer licensed in this State in a transaction involving the purchase or other acquisition from the other pawnbroker or precious metal dealer of the other pawnbroker’s or dealer’s stock in trade, or a substantial part thereof in bulk, where the other pawnbroker has made the reports required by this section with respect to such property or merchandise.

B.    Every precious metal dealer shall retain in the dealer’s possession for a period of ten (10) days all precious metal purchased as a precious metal dealer, and such metal shall remain in the condition in which it was purchased.  The ten (10) day period shall commence on the date that the Chief of Police receives the report of its acquisition in compliance with this section.  If the Chief of Police has probable cause to believe that any precious metal reported by a dealer has been stolen, the Chief of Police may give written notice to the dealer to retain such metal for an additional period of fifteen (15) days.  Upon such notice, the dealer shall retain such metal in an unaltered condition for an additional fifteen (15) day period unless the Chief of Police notifies the dealer in writing that the waiting period is terminated at an earlier time.

C.    Reports made under this section shall be available for inspection only by the Chief of Police or his designees, the City Manager or his designees, the City Clerk or his designees, or the City Attorney or his designees, and only for law enforcement purposes.

(Code 2015)

A     At the time of making a loan, a pawnbroker shall enter in a book kept for that purpose:

1.    The date, duration, amount and charges of every loan made by the pawnbroker.

2.    A full and accurate description of the property pledged.

3.    The name, age, residence and driver’s license or other personal identification number of the pledger.

B.    At the time of purchasing precious metal, a precious metal dealer shall enter in a book kept for that purpose:

1.    The date of the purchase.

2.    A full and accurate description of each item purchased, including any identifying letters, numbers or marks on the item.

3.    The name, age, residence and driver’s license or other personal identification number of the seller.

C.    The record required by this section shall be maintained by the pawnbroker or precious metal dealer at the pawnbroker’s or dealer’s place of business for not less than one 91) year following the date of the transaction.

(Code 2015)

A.    No pawnbroker shall receive into pledge, or as security for any loan, transfer, service, undertaking or advantage, anything of value from any person under the age of eighteen (18) years.

B.    No precious metal dealer shall purchase any precious metal from any person under the age of eighteen (18) years.

(Code 2015)

The City Clerk or his designee or the Chief of Police or his designees shall have access during regular business hours to the place of business of any pawnbroker or precious metal dealer conducting business within the City.  Access shall be for the purpose of periodically inspecting property pledged or purchased in the transaction of the business of the pawnbroker or precious metal dealer, and records relating to those transactions, to determine if the pawnbroker or dealer is complying with the provisions of this ordinance.

(Code 2015)

A precious metal dealer shall require of every person from whom the dealer purchases precious metal for resale:

A.    Proof of identification.

B.    A signed statement saying that the seller is the legal owner of the precious metal or is an agent of the legal owner who is authorized to sell such metal and stating when, where and in what manner such metal was acquired by the seller.

(Code 2015)

A violation of this ordinance shall be a Class B misdemeanor.

(Code 2015)