ORD-21-81 REGARDING PAWNBROKERS USED MERCHANDISE DEALERS AND AUCTIONEERSORDINANCE
NO. 21-81
AN ORDINANCE OF THE CITY COUNCIL OF
THE CITY OF ORFillTGE ADDING CHAPTER 5.58
TO THE ORANGE MUNICIPAL CODE REGARDING
PAWNBROKERS, USED MERCHANDISE DEALERS
AND AUCTIONEERS.
WHEREAS, section 21637 of the Business and Professions Code
was amended by the State Legislature to read, IINothing herein
contained shall be deemed to excuse compliance with the provisions
of any city, county, or city and county ordinance or any other
state law covering the reporting, holding, or releasing of
tangible personal property, not inconsistent with the provisions
of thi sarti cle: II and
WHEREAS, the City Council of the City of Orange, because of
possible inconsistencies with State law, repealed Chapter 5.58
which regulates the sale of secondhand goods from the Orange
Municipal Code by enacting Ordinance No. 1-81;
and WHEREAS, the City Council of the City of Orange desires
to regulate the sale of secondhand goods in a manner which is
con-sistent with State law;
and WHEREAS, State law requires that the reporting requirements
of a local ordinance regulating used merchandise shall be no
less than the reporting requirements of Section 21625 et seq. of
the Business and Professions Code:
and WHEREAS, the State law regarding the reporting of sales of
used merchandise does not apply to a business that does less than
20%of its business in used merchandise;
and WHEREAS, it is difficult to determine if a business
is conducting more than 20% of its business in used merchandise and
a local ordinance may require all business which are
actually dealing in used merchandise to report such
transactions.NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ORANGE
DOES ORDAIN AS
FOLLOWS:SEcrION
I:Chapter 5.58, Sections 5.58.010 through 5.58.120 of the
Orange Municipal Code is hereby added to read as
follows:Chapter 5.
58 PAWNBROKERS, USED MERCHANDISE DEALERS, AND
AUCTIONEERS
Sections:5.58.
010 5.58.
020 5.58.
030 5.58.
040 5.58.
050 5.58.
060 5.58.
070 5.58.
080 5.58.
090 5.58.
100 5.58.
110 5.58.
120
Definitions.
Permit--
Required.Permit--Application.Police
Investigation of Applicant.Report Required
of Property Acquired.Exceptions
To Report Requirements.Prescribed
Form of Report.Records
to be Kept.Reports and Records in
the English Language.Retention of Property
for Thirty-Day Period.Regulations When
Customer
lII"""'""
5.58.010 Definitions. For the purpose of this chapter, the
words in this section shall have the meanings assigned to them:
A. "Auctioneerll means any person who at public outcry offers
for sale, as principal or agent, to the highest bidder on the spot,
any article of merchandise or other property, or who engages in
the business of accepting for auctioning, or auctioning secondhand
personal property, except under trade by virtue of legal process.
B. IIPawnbrokerll is a person engaged in conducting, managing or
carrying on the business of loaning money, for himself or for any
other person upon personal property, personal security,
pawns or pledges, or the business of purchasing articles of
personal property and reselling or agreeing to resell such articles
to the vendors or their assignees, at prices agreed upon at or
before the time of such purchase.
c. IIUsed Merchandise Dealerll as used in this Chapter means
and includes any person who engages in the business of buying,
selling, trading, or accepting for sale on consignment secondhand
property. The provisions of this Chapter shall have no application
to secondhand or new car dealers, nor to the sale of fruits,
vegetables, or other perishable foodstuffs. (Ord. 32-78 Section
1 part), 1978: Prior Code Section
6450).5.58.020 Permit--Required. No person
shall conduct business as a pawnbroker, used merchandise dealer,
or auctioneer within the City without first obtaining a proper
permit therefor,as provided in this Chapter or as provided by State law.
The pro-visions of this Chapter shall not be applicable to a
business which is licensed pursuant to Business and Professions
Code Section 21640, et. ~ (Ord. 32-78 Section
1 (part), 1978:Prior Code
Section 6450.1)5.58.030 Permit--Application.
Application for a pawn-broker, used merchandise dealer, or
auctioneer permit shall be made to the business services coordinator
who shall refer all such applications to the Chief of
Police for an investigation.Ord. 32-78 Section 1 (part), 1978:
Prior Code Section 6450.2).5.58.040 Police
Investigation of Applicant. The Chief of Police shall cause each
applicant to be fingerprinted and photographed, a record of which shall be kept
in the office of the Chief of Police. The applicant shall pay
the amount set by the State for processing the
fingerprints. The Chief of Police shall cause an investigation of each applicant
to be made to deter-mine if such applicant has committed any act
that if done by a permitee would be grounds for revocation
or suspension of a permit,or if such applicant has been convicted of
a felony or any crime that has a substantial
relationship to the permitted business.Ord. 32-78 Section 1 (part),
1978: Prior Code Section 6450.3).5.58.050
Report Required of Property Acquired. Every pawnbroker, used
merchandise dealer, and auctioneer shall report all personal property which
he has purchased, taken in trade,taken in pawn, accepted for
sale on consignment, or accepted for auctioning, to the Chief of Police
of the City, not later than twelve noon of the day
following the acquisition of such property.Ord. 32-78 Section 1 (
part),
JIll""""
A. Acquired in good faith in a transaction involving the
stock in trade of another pawnbroker, used merchandise dealer
or auctioneer who previously has made the report or reports
required by Section 5.58.050 and 5.58.070 of such property included
in the transaction and who states in writing that the report or
reports so required have been made, and provided the acquiring
pawnbroker, used merchandise dealer or auctioneer submits a copy
of such statement to the Chief of Police. Each of the pawnbrokers,
used merchandise dealers or auctioneers involved in the trans-
action shall retain a copy of the statement referred to in this
section for a period of three years as a matter of record which
shall be made available for inspection by any law enforce-
ment officer.
B. Acquired in a nonjudicial sale, transfer, assignment,
assignment for the benefit of creditors, or consignment of the
assets or stock in trade, in bulk, or a substantial part thereof,
of an industrial or commercial enterprise for purposes of
voluntary dissolution or liquidation of the seller's business,
or for the purpose of di sposing of an exces si ve quantity of per-
sonal property; or which has been acquired in a nonjudicial sale
or transfer from an owner of his entire household of personal
property, or a substantial part thereof; provided, the pawnbroker,
used merchandise dealer or auctioneer retains in his place of
business for a period of three years a copy of the bill of sale,
receipt, inventory list, or other transfer document as a matter
of record which shall be made available for inspection by any law
enforcement officer; and provided further that the pawnbroker,
used merchandise dealer or auctioneer notifies the Chief of Police
that exemption from reporting is being claimed under this section.
Industrial or commercial enterprise" and "owner," as used in
this section, do not include a pawnbroker, used merchandise dealer
or auctioneer.
c. Acquired in a sale made by any public officer in his
official capacity, trustee in bankruptcy, executor, administrator,
receiver, or public official acting under judicial process or
authority, or which has been acquired in a sale made upon the
execution of, or by virtue of, any process issued by a court, or
under the provisions of the Warehouse Receipts Act.
D. Acquired in good faith as part or complete payment for
other personal property by a person whose principal business is
primarily that of selling or trading personal property directly
to the consumer; provided, however, that in such transaction no
consideration other than stock in trade shall pass from the
business enterprise to the person trading or exchanging the used
item.
E. Acquired as the surplus property of the United States
Government or a state, city, county, city and county, municipal
corporation, or public district and which after requisition or
acquisition by the United States Government or by a state, city,
county, city and county, municipal corporation, or public
district has never thereafter been sold at retail.
F. Reported by a pawnbroker, used merchandise dealer, or
auctioneer as an acquisition or a purchase, or which has been
reported as destroyed or otherwise disposed of, or:
1. To a state agency by the authority of any other law
of this Statej or
5.58.060 Exceptions to Report Requirements. The following
are secondhand goods excepted from the report requirements of
Section 5.58.050:
3-
2.
To a city, county, or city and county officer or agency
by the authority of any other law of this State or a city,
county, or city and county ordinance.G.
Acquired by gift and the person sells the property acquired
by gift as a part of the charitable activity carried on by
said person.H.
Acquired at a swap meet as defined in Section 5.74.010 of
the Orange Municipal Code.I.
The provisions of this Chapter have no application to a person
whose sales of secondhand personal property are confined to
the disposal of goods accepted in trade and as part payment for
new merchandise; provided, further, however, that such new
merchandise is not then redeemable in cash to the person trading
or exchanging the used item. (Ord. 13-79 Section 1,
1979: Ord. 32-78 Section 1 (part), 1978: Prior Code Section 6450.
5).5.58.070 Prescribed Form of Report. A. A
permitee under this Chapter shall utilize the forms prescribed and
provided at actual cost by the Police
Department.B. Each day all articles which were purchased the
preceding day shall be available for inspection by the Police
Department.The reporting requirements of this Section shall be no
less than the reporting requirements of Section 21625, et. seq.
of the California Business and Professions Code. (Ora:-
9-80 Section 2, 1980: Prior Code Section
6450.6).5.58.080 Records to be Kept. Every
pawnbroker, used merchandise dealer or auctioneer shall have a complete
record of all personal property pledged to, purchased, received
or sold by him which record shall contain all the matters required
to be shown in the reports referred to in Sections 5.58.050, 5.58.
070 and 5.58.110 of this Chapter. Every such record shall be open
at all times during business hours to the inspection
of any law enforcement officer. (Ord. 32-78 Section
1 (part), 1978:Prior Code
Section 6450.7).5.58.090 Reports and Records in
the English Language.Every report and record required by the terms of
this Chapter shall be written or printed entirely in the English language
in a clear and legible manner. (Ord. 32-78 Section
1 (part), 1978: Prior
Code Section 6450.8).5.58.100 Retention of
Property for Thirty-Day Period.Every pawnbroker, used
merchandise dealer, and auctioneer shall retain in his possession for a period
of thirty (30) days all personal property reported under
the provisions of this Chapter.The thirty-day holding
period, with respect to such personal property, shall commence with the
date the report of its acquisi-tion was made to the Chief
of Police by the pawnbroker, used merchandise dealer or auctioneer.
A police officer of the City may require any
pawnbroker, used merchandise dealer, or auctioneer,upon written notice, to
hold property, which the police officer has reason to believe is stolen, for
a period not to exceed ninety 90) days from the date
of placing such hold. Such property may be released only
upon written authorization of a police officer of the City. The Chief
of Police or his designee(s)in the detective division
may
this Section and waive any holding period therein, when determined
in the public interest to do so. Any such release or waiver shall
be in writing and signed by the Chief of Police or his designee(s)
in the detective division on an appropriate form designated by the
Police Department for such purpose. (Ord. 13-79 Section 2,
1979;Ord. 32-78 Section 1 (part), 1978: Prior Code Section
6450.9).ADOPTED this 18th day of
August 1981.5.58.110 Regulations When Customer is a
Minor. No person conducting a business as a pawnbroker,
used merchandise dealer, or auctioneer shall buy, trade, accept
for consignment or auction, or loan money for secondhand property from
any person who is under eighteen (18) years of age unless said
person is accompanied by his parent, guardian or other person
in lawful custody of the person who is under eighteen (18) years
of age.The person conducting a business as a pawnbroker,
used merchandise dealer, or auctioneer shall obtain the written
permission, under penalty of perjury, from the parent, guardian or
other person in lawful custody of the person who is under eighteen (
18) years of age before the person conducting a business shall
buy, trade,accept for consignment or auction, or loan money
for secondhand property from any person who is under eighteen years of
age. A copy of the written permission shall be included with
the report which is required under Section 5.58.050. (Ord.
32-78 Section 1 (part), 1978: Prior Code
Section 6450.10).5.58.120 Fee. The permit fee shall be
five ($5.00)dollars per applicant. (Ord. 32-78 Section
1 (part), 1978: Prior
Code Section
6450.11).SECTION II:This Ordinance shall be published
once within fifteen (15)days after its passage in the Orange City
News, a newspaper of general circulation, published and circulated
in the City of Orange, and shall take effect thirty (30)
days from and after the date
of
its finalpassage.ATTEST:
itJ14A.{!~ ~. f/t;b41 CITY CLER OF T
C
WITNESS may hand and seal thi s 18th day of August 1981.
STATE OF CALIFORNIA )
COUNTY OF ORANGE )
CITY OF ORANGE )
I, MARILYN J. JENSEN, City Clerk of the City of Orange,
California, DO HEREBY CERTIFY that the foregoing Ordinance was
introduced at a regular meeting of the City Council held on the
i].t;;h day of August ,1981, and thereafter at a
regular meeting of said City Council duly held on the 18th day
of August , 198~, was duly passed and adopted by the
following vote, to wit:
AYES: COUNCILMEN: Barrera, Mayor Beam, Perez, Beyer
NOES: COUNCILMEN: None
ABSENT: COUNCILMEN: Smith
7J&uu~~ ~ -Yd1il4JMarilynJ. J se fICITYCLERKOFTHECrT OF ORANGE
6-
ORANGE CITY NEWS
PUBLICATION DATE:Wednesday,
August 26, 1981
LEGAL NOTICE
ORDINANCE NO. 21-
81 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
ORANGE ADDING CHAPTER 5.58 TO THE ORANGE MUNICIPAL CODE
REGARDING PAWNBROKERS, USED MERCHANDISE DEALERS AND
AUCTIONEERS."Original on file in the City Clerk's
Dept.)
SYNOPSIS:Ordinance No. 21-81 adding Chapter 5.58, Sections 5.
58.010 through 5.58.120 of the Orange Municipal
Code regarding Pawnbrokers, used Merchandise Healers
and Auctioneers.ADOPTED by the City Council of the City of Orange at
a regular meeting held Tuesday August 18, 1981, by the
following
vote:
AYES:ABSENT:Barrera, Mayor Beam,
Perez,
Beyer Smith CITY
OF ORANGE Marilyn J. Jensen,