HomeMy WebLinkAboutOrdinance-1994-0952
INTRODUCED BY COUNCIL MEMBER
Council Bill No. 38 ORDINANCE
Seriesof 1994
VANCE EDWARDS
NO. ..9.5.L
AN ORDINANCE AMENDING THE CODE OF LAWS OF THE CITY
OF WHEAT RIDGE, COLORADO, ADOPTING AN ARTICLE
CONCERNING THE LICENSING AND REGULATING OF
PAWNBROKERS.
TITLE:
WHEREAS, to protect the health, safety and welfare of the
citizens of the City of Wheat Ridge, and in conjunction with
regulation by the State of Colorado, it is necessary for the City
to regulate pawnbrokers; and,
WHEREAS, the City Council has determined that Chapter 11,
Article VII of the Wheat Ridge Municipal Code should be enacted for
the efficient and just administration of pawnbrokers.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WHEAT RIDGE,
COLORADO, THAT:
Section 1. Wheat Ridge Code of Laws, Chapter 11 is hereby amended
by the addition of Article VII, "Pawnbrokers," and adopted as
follows:
Section 11-170
Section 11-171
Section 11-172
Section 11-173
Section 11-174
Section 11-175
section 11-176
Section 11-177
Section 11-178
Section 11-179
Section 11-180
Section 11-181
section 11-182
section 11-183
Section 11-184
Section 11-185
Section 11-186
Section 11-187
section 11-188
Section 11-189
Section 11-190
Section 11-191
Section 11-192
Section 11-193
Table of Contents
Definitions.
Compliance; license required.
Licensing application fee.
License fee.
Non-transferability of license.
License renewal.
Bond required.
Insurance required.
Letter from Zoning Administrator required.
Investigation and approval of applicants
required; non-transferability.
Denial of license.
Revocation of license.
Managers; change of any applicant.
Required acts of pawnbrokers.
Identification acceptable.
Accepting lost or stolen articles.
Prohibited acts of pawnbroker in the
course of doing business.
Intermediate payment; receipts.
Sale of tangible personal property; notice
to customer.
Hold orders and surrender of property.
Hours establishments closed.
Liability of pawnbroker.
Procedure of moving business.
Violations and penalties.
-
Article VII. Pawnbrokers.
Section 11-170. Definitions.
As used in this Chapter, the following terms shall have the
meanings indicated.
A. CITY - The City of Wheat Ridge, Colorado.
B. POLICE DEPARTMENT - The Police Department or designee for
the City of Wheat Ridge.
C. POLICE CHIEF - The Police Chief or designee for the City
of Wheat Ridge.
D. CONTRACT FOR PURCHASE - A contract entered into between
a pawnbroker and a customer pursuant to which money is
advanced to the customer by the pawnbroker on the
delivery of tangible personal property by the customer to
the pawnbroker on the condition that the customer, for a
fixed price and within a fixed period of time, not to
exceed ninety days, has the option to cancel the contract
and recover from the pawnbroker the tangible personal
property.
E.
FIXED PRICE - The amount agreed upon to
for purchase during the option period.
shall not exceed:
cancel a contract
Said fixed price
(1) One-tenth (1/10) of the original price for each
month, plus the original purchase price, on amounts
of fifty dollars ($50.00) or over; or
(2) One-fifth (1/5) of the original purchase price for
each month, plus the original purchase price, on
amounts under fifty dollars ($50.00).
F. FIXED TIME - That period of time, not to exceed ninety
days, as set forth in a contract for purchase, within
which the customer may exercise an option to cancel the
contract for purchase.
G. LOCAL LAW ENFORCEMENT AGENCY - Any marshal's office,
police department, or sheriff's office with jurisdiction
in the locality in which the customer enters into a
contract for purchase or a purchase transaction.
H. OPTION - The fixed time and the fixed price agreed upon
by the customer and the pawnbroker in which a contract
for purchase may be but does not have to be canceled by
the customer.
2
--
I. PAWNBROKER - A person regularly engaged in the business
of making contracts for purchase or purchase transactions
in the course of his business.
J.
PAWNBROKING The
business of making
transactions in the
act of a person engaging in the
contracts for purchase or purchase
course of a pawnbroker's business.
K. PERSON - Any individual, firm, partnership, association,
corporation, company, organization, group or entity of
any kind.
L. PURCHASE TRANSACTION - The purchase by a pawnbroker in
the course of business of tangible personal property for
resale, other than newly manufactured tangible personal
property which has not previously been sold at retail,
when such purchase does not constitute a contract for
purchase.
M. TANGIBLE PERSONAL PROPERTY - All personal property other
than choses in action, securities, or printed evidences
of indebtedness, which property is deposited with or
otherwise actually delivered into the possession of a
pawnbroker in the course of business in connection with
a contract for purchase or purchase transaction.
Section 11-171. Compliance; license required.
It is unlawful for any person to engage ln the business of
pawnbroking except as provided in and authorized by this Article
and without first having obtained an annually renewable and non-
transferable Pawnbrokers License issued by the City.
Section 11-172. Licensinq application; fee.
The Police Department shall issue a license according to the
requirements of this Article. All applicants for a Pawnbrokers
License shall file an application for such license with the Police
Department on forms to be provided by the Police Department. The
application for a license shall contain the information required in
this Article and any other pertinent information required by the
Police Department. Each individual applicant, partner of a
partnership, officer, director and holder of ten percent or more of
the corporate stock of a corporate applicant, and all managers,
shall be named in each application form, and each of them shall be
photographed and fingerprinted by the Police Department. Each of
them shall furnish three letters of character reference from
residents of the city or the surrounding metropolitan area. Each
individual applicant, partnership and corporate applicant shall, in
addition, furnish as an attachment to and part of such application
evidence that the proposed establishment meets the requirements of
the zoning ordinance, proof of applicant's right to possession of
3
the premises wherein the business of pawnbroking will be conducted,
a Financial Questionnaire, Consent to Release of Financial
Information, and a current personal financial statement or a
balance sheet and income account statement for the preceding
twelve-month period prior to the date of the application. Each
corporate applicant shall furnish evidence that it is in good
standing under the statutes of the State of Colorado, or in the
case of a foreign corporation, evidence that it is currently
authorized to do business in the State of Colorado. The license
issued under this Article shall be applicable only for the location
identified in the license application, and only for the
owner/applicant making the license application. Each applicant
shall pay nonrefundable application fees at the time of filing an
application and at the time an amendment is made to the
application. Such fees shall be determined by the City and set by
resolution.
Section 11-173. License fee.
The City finds, determines and declares that considering the
nature of the business of pawnbroking and the relationship of such
business to the municipal welfare, as well as the relationship
thereto to the expenditures required of the City, and a proper,
just and suitable distribution of the tax burdens within the City
and all other matters properly to be considered in relation
thereto, the classification of such business as a separate type of
business or occupation requiring a separate license fee is
reasonable, proper, uniform, nondiscriminating and necessary for a
just and proper distribution of the tax burdens within the City.
The City hereby levies and assesses for each year an annual City
pawnbroker license fee. The annual license fee for carrying on the
business of pawnbroking shall be determined by the City and set by
resolution. Such fee shall be payable prior to the issuance of the
license. Any license issued pursuant to this Article shall expire
on the 31st day of December of each year. Such license fee shall
be prorated for the calendar year in which the Pawnbrokers License
is first issued.
Section 11-174 Non-transferabilitv of license.
Any license issued pursuant to this Article shall not be
transferable. Any such license may not be transferred to either
another person or a location other than that listed in the license
application. Any change in the partners of a partnership or in
officers, directors, or holders of ten percent or more of the stock
of a corporate licensee holding a Pawnbrokers License shall result
in termination of the license of the partnership or corporation,
unless a written amendment to the original application is made as
required by Section 11-182.
4
-
Section 11-175. License renewal.
Annual renewal requests must be filed with the Police
Department no later than the first day of December of each calendar
year and shall be made under oath, stating that no events have
occurred which would result in a different response than that
contained in the original application or any renewal thereof. If
circumstances have changed, the applicant must state with
particularity the change, and respond appropriately to all
questions in the application form. The request for renewal must
include evidence of insurance coverage per the requirements of
Section 11-177 herein.
Section 11-176. Bond required.
As part of the licensing process, the applicant shall furnish
a good and sufficient bond in a sum to be determined by the City
and set by resolution. Such bond shall be conditioned upon the
faithful observance of the requirements of this Article and
conditioned upon the safekeeping or return of all articles in
pledge by such pawnbroker. The City Attorney must approve the
surety, and form or surety agreement, before a pawnbrokers License
will be issued.
Section 11-177. Insurance required.
As a part of the licensing process, the applicant shall
provide fire and property damage insurance for all property the
pawnbroker holds by contract, in the minimum amount of one-half of
such property's contracted value in case of damage or destruction.
The applicant must provide the Police Department proof of such
insurance coverage before a Pawnbrokers License is issued. The
City Attorney must approve the nature and extent of insurance
coverage before a Pawnbrokers License will be issued. Proof of
this insurance coverage must be provided each time a request for
renewal is filed with the Police Department.
Section 11-178. Letter from Zoning Administrator required.
As a part of the licensing process, and prior to the issuance
of any Pawnbrokers License, the applicant shall obtain and submit
to the Police Department, a letter from the zoning Administrator
stating that the zoning of the property permits a pawnbroking
establishment, and that the pawnbroker has obtained, is in the
process of obtaining, or will obtain, a special use permit.
Section 11-179.
Investiqation and approval of applicants
required: non-transferability.
Upon receipt of a properly completed application, as
determined by the Police Department, together with all information
required in connection therewith, fingerprints and photographs, and
payment of the application fee, the Police Department shall conduct
5
-
an investigation of the background, experience, character and
financial responsibility of each individual applicant, the partners
of a partnership, officers, directors and holders of ten percent or
more of the corporate stock of a corporate applicant, and all
managers of a proposed pawnbroker's establishment.
If the Police Department background investigation confirms
that the requirements of this Article have been met and that the
financial responsibility, experience, character and general fitness
of the individual applicant and of the partners, officers,
directors and/or holders of ten percent or more of the stock of a
corporate applicant and all managers, are such as to command the
confidence of the public and to warrant the belief that the
business will be lawfully, honestly, and fairly operated pursuant
to this Article, the Police Department may issue a Pawnbrokers
License. If the investigation reveals that any applicant, partner,
officer, director and/or holder of ten percent or more of the
corporate stock of a corporate applicant, or any of the managers,
does not meet these criteria, the Police Department will deny the
applicant's request for a Pawnbrokers License.
Upon concluding an investigation which reveals that the
applicant's request for a Pawnbrokers License may be approved, and
once the Police Department receives verification that the applicant
has met the bond and insurance requirements, and has received a
compliance letter from the Zoning Administrator, the Police
Department shall issue and deliver to the applicant a Pawnbrokers
License for use only at the premises specified in the application
and only by the owner/applicant making the application. If any
requirements of this Section have not been met, the Police
Department shall deny the applicant's request for issuance of a
Pawnbrokers License in accordance with Section 11-180.
Section 11-180. Denial of license.
A. The application for, or renewal of, a Pawnbrokers
License may be denied by the Police Department on grounds
including, but not limited to, the following:
(1) A finding that an individual applicant, partner,
officer or director of a corporation, and/or holder
of ten percent or more of the stock of a corporate
applicant or manager of a pawnbroker's
establishment, is not of such moral character as to
assure that the operations of the pawnbroker' s
establishment will be conducted lawfully or in a
manner which will not be detrimental to the public
interest or well-being as determined by the Police
Department's investigation.
6
(2) A finding that an applicant 1.S not financially
responsible, is not in good standing, or is not
authorized to do business in Colorado. As used
herein, "financially responsible" means having
sufficient income and assets to defray expenses and
provide for liabilities of the business as they
become due.
(3) A finding that an individual applicant has been
adjudged in any civil or criminal proceeding to
have engaged in business or trade practices
prohibited by law, or convicted of any felony or
other offense involving moral turpitude shall be
considered in determining whether the individual
applicant, manager, partner, director and/or holder
of ten percent or more of the applicant's stock is
a person of good moral character.
(4 )
Failure to comply with any
relating to the conduct
pawnbroker's business.
law, rule or regulation
or operation of any
(5) The suspension or revocation of any pawnbroker
license ever issued to the applicant.
B. The Police Department shall make a decision to accept or
deny the applicant's license or renewal thereof no later
than thirty (30) days after the Police Department has
received all forms, documents and items required of the
applicant by this Article and the results of the Police
Department's investigation required by Section 11-179.
C. The Police Department shall not deny an applicant. s
request for a license without notice to the applicant of
the reasons for such denial, and without the applicant
being given an opportunity for an appeal of the Police
Department's decision, as set forth in section 11-181.
Section 11-181. Revocation of license.
A. A Pawnbrokers License may be revoked under this Article
if:
(1 )
The licensee fails, at
qualifications requires
Article;
any time, to meet the
of an applicant by this
( 2 )
The license violates
or other ordinance
activities permitted
any provision of this Article
of the City governing the
by the license;
7
-
(3) The licensee obtained the license by fraud or
misrepresentation; or
(4) The licensee has final conviction of any offense
involving moral turpitude including but not limited
to, theft, fraud, robbery, burglary, larceny, or
deceit; and such conviction, as determined by the
Police Department, would create a danger to the
public health, safety, or welfare if the licensee
were to continue to engage in such conduct.
B. For the purpose of investigating violations of this
Article, any authorized agent of the Police Department
may, at any reasonable time, investigate the business and
examine the books, accounts, papers, and records of any
licensed pawnbroker or any person, partnership, or
corporation which engages in the business of pawnbroking
within the City. Application for or acceptance of a
license by a pawnbroker under the terms and provisions of
this Article shall constitute a continuing consent to
entry by any authorized agent of the Police Department
upon the pawnbroker's premises for the purpose of
investigating the business and examining the books,
accounts, papers, and records used therein, at any time
during the term of the license, during regular business
hours or whenever the pawnbroker, his employee, or agent
is upon the premises, without compliance with the
provision of any other provision in this Code. willful
failure or refusal by the pawnbroker, his agent, or
employee to permit entry upon the premises by any
authorized agent of the Police Department as provided
herein, after presentation of credentials and demand for
entry, is a violation of this provision and shall be
grounds for revocation of the Pawnbrokers License.
C. If the Police Department is made aware of the grounds in
Subsection (A) of this section, the Police Department
shall have the authority to revoke the license for the
remainder of its term.
D. Except for such emergency suspension authorized by
Section (D) of this Section, no such suspension or
revocation is final until the licensee has been given the
opportunity for a hearing to contest the suspension or
revocation. Such hearing shall be held within twenty
(20) days of a written request for the hearing filed with
the Police Department by the licensee affected. Appeal
of the denial of a request for issuance of a Pawnbroker's
License, or renewal thereof, shall be conducted according
to this Subsection (E). The hearing shall be conducted
as follows:
8
(1) Upon receipt of a request for hearing, the City
Administrator shall designate a hearing officer to
decided the matter, and will notify the applicant
or licensee of the hearing date by mail.
(2) The hearing officer is hereby granted the authority
to sustain, reverse or modify the Police
Department's decision, and/or upon a showing by the
applicant or licensee of mitigating factors, may
suspend the license for a period of time and/or
impose on the applicant or licensee, reasonable
conditions on the license or any renewal thereof to
secure compliance with this Article's standards.
( 3) Any hearing presented pursuant to this Article
shall be conducted in conformance with standards of
procedural due process applicable to administrative
hearings, including the right to present testimony
and to confront witnesses.
(4) The hearing officer shall apply the following
standards for review: (1) whether the City, through
the order of revocation, suspension, or denial,
abused its discretion, (2) acted arbitrarily or (3)
acted in excess of its authority hereunder.
Additionally, the licensee or applicant shall have
the burden to show by a preponderance of the
evidence why the revocation, suspension, or denial
of license, or renewal thereof, was improper under
the above standards. It shall also be the burden
of the licensee to establish the mitigation in
contesting any order of revocation or suspension.
(5) The hearing officer shall conduct the hearing
within twenty (20) business days of the filing of
the request for hearing and shall enter written
finding of fact and conclusions of law, which shall
be mailed to the Licensee or applicant at the
address shown on the License application. The
hearing officer's decision shall be effective
within three (3) business days of the date of the
written finding required by this subsection.
9
-
-
E. If, after a hearing, the suspension or revocation 1S
upheld, the Police Department may include reasonable
orders or conditions with which the person whose license
has been suspended or revoked shall comply to protect any
work in progress and the public health, safety, and
welfare.
F. No person whose license is revoked under this Article is
entitled to receive a refund of any part of the license
fee paid for the license.
G. No person who has had a license suspended or revoked
under this Article is entitled to obtain the same or any
similar license under this Article during the period of
suspension or revocation, either in the person's own name
or as a principal in another business that applies for a
license.
Section 11-182.
Manaqers: Chanqe of owner, shareholder,
partner, officer, director or manager.
A. A pawnbroker may employ a manager to operate a
pawnbrokering business, provided the pawnbroker retains
complete control of all aspects of the pawnbroking
business, including but not limited to, the pawnbroker's
right to possession of the premises, his responsibility
for all debts, and the pawnbroker must bear all risk of
loss or opportunity for profit from the business.
B. In the event of a change of owner, officer, director, or
holder of more than ten percent of the shares of stock of
a corporate license holder, partner of a partnership, or
manager, disclosure in writing by amendment of the
original application for issuance of a Pawnbroker's
License thereof shall be made to the Police Department.
Notwithstanding the provisions of this Section, neither
a new license nor an amendment to an existing license
shall be required upon any change, directly or
beneficially, in the ownership of any licensed pawnshop,
which is owned directly or beneficially by a person that
as an issuer has a class of securities registered
pursuant to Section 12 of the Securities Exchange Act of
1934 (the "Act") or is an issuer of securities which is
required to file reports with the Securities and Exchange
Commission pursuant to Section 15(d) of the Act, provided
that such person files with the commissioner such
information, documents and reports as are required by the
provisions of the Act to be filed by such issuer with the
Securities and Exchange Commission. Such issuer shall
10
file with the Police Department information on managers,
officers and directors of such issuer or any licensed or
intermediate subsidiary as is otherwise required of
managers, officers and directors of corporate
pawnbrokers.
The applicant or license holder shall pay a fee for
amendment of the application, which fee shall be
determined by the City and set by resolution. The new
manager shall be photographed, fingerprinted and
investigated as required in section 11-179. Failure of
an applicant to request an amendment of the application
or failure to meet the prescribed standards and
qualif ications of Section 11-179 shall constitute grounds
for revocation, suspension, or nonrenewal of the license.
Section 11-183. Required acts of pawnbrokers.
A. Every pawnbroker shall keep a numerical register in which
shall be recorded the following information: the name,
address, and date of birth of the customer; the
customer's driver's license number or other
identification which is allowed for sale of valuable
articles pursuant to Section 18-16-103, C.R.S., or for
the sale of secondhand property pursuant to Section 18-
13-114 C.R.S.; the date, time and place of the contract
for purchase or purchase transaction; and an accurate and
detailed account and description of each item of tangible
personal property, including, but not limited to, any and
all trademarks, identification numbers, serial numbers,
model numbers, brand names, owner's identification
numbers, and other identifying marks on such property.
The pawnbroker shall also obtain a written declaration of
the customer's ownership which shall state whether the
tangible personal property is totally owned by the
customer, or shall have attached to such declaration a
power of sale from the partial owner to the customer, how
long the customer has owned the property, whether the
customer or someone else found the property, and, if the
property was found, the details of the finding.
B.
If the contract for purchase or the purchase
involves more than one item each item shall
on the pawnbroker's register and on the
declaration of ownership.
transaction
be recorded
customer's
C. The customer shall sign his or her name in such register
and on the declaration of ownership and receive a copy of
the contract of purchase or a receipt of the purchase
transaction.
11
D. The register shall be made available to any local law
enforcement agency for inspection upon request at any
reasonable time.
E. Every pawnbroker shall keep each register for at least
three (3) years after the date of the last transaction
entered in the register.
F. Every pawnbroker shall hold all goods obtained pursuant
to a contract for purchase within his or her jurisdiction
for a period of ten (10) days following the maturity date
of the contract for purchase, during which time such
goods shall be held separate and apart from any other
tangible personal property, shall not be displayed to the
public, and shall not be changed in form or altered in
any way.
G. Every pawnbroker shall hold all property purchased by him
or her through a purchase transaction for thirty (30)
days following the date of purchase, during which time
such property shall be held separate and apart from any
other tangible personal property, shall not be displayed
to the public, and shall not be changed in form or
altered in any way.
H. Every pawnbroker shall provide the local law enforcement
agency, on a weekly basis, with two (2) copies of the
records, on a form to be provided or approved by the
local law enforcement agency, of all tangible personal
property accepted during the preceding week and one copy
of the customer' s declaration of ownership. The form
shall contain the same information required to be
recorded in the pawnbroker's register pursuant to
Subsection (A) of this Section. The local law
enforcement agency shall designate the day of the week on
which the records and declarations shall be submitted.
I. Every pawnbroker shall provide a safe place for keeping
the tangible personal property of the customers.
J. Every pawnbroker shall clear, through the Police
Department, prior to release, all firearms, other than
those which are newly manufactured and which have not
been previously sold at retail.
K. Every pawnbroker shall videotape all transactions,
including those which do not result in a contract for
purchase or purchase transaction. Any such videotapes
shall be kept by the pawnbroker for a minimum of sixty
(60) days and shall be subject to police review.
L. Every pawnbroker shall pay to the City a fee for every
transaction form. This fee shall be determined by the
City and set by resolution.
12
-
M. Every pawnbroker shall, at his or her expense, keep
records or provide reports in such manner and by such
methods as may be determined from time to time by the
Police Department.
Section 11-184. Identification acceptable.
No license nor any principal, employee, agent or servant of
such licensee shall engage in a purchase transaction or shall enter
into a contract for purchase transaction with any customer without
securing one of the following kinds of then current and valid
identification:
A. A Colorado's driver's license;
B. Identification card issued in accordance with Section 42-
2-402, C.R.S., which is an identification card issued by
the State of Colorado;
C. A valid driver's license containing a picture, issued by
another state;
D. A military identification card;
E. A valid passport;
F. An alien registration card; or
G. A non-picture identification document issued by a state
or federal government entity, if the pawnbroker also
obtains a clear imprint of the customer's right index
finger.
Section 11-185. Acceptinq lost or stolen articles.
A pawnbroker who accepts in pledge any tangible personal
property as security for a contract for purchase from one who is
not the owner thereof, obtains no title in the property either by
reason of a pledgor's failure to cancel the contract for purchase
or by transference of the pawn ticket to the pawnbroker by the
pledgor thereof. Ignorance of the fact that the pledged property
was lost or stolen shall not be construed to affect the question of
title: and if the pawnbroker shall sell such article to a third
person, he shall remain liable to the original owner in any
appropriate legal action. The lawful owner may, upon proving his
ownership of the lost or stolen property claim the same from the
pawnbroker or recover the same by means of any appropriate legal
action.
13
....
Section 11-186.
Prohibited acts of pawnbroker in the course of
doinq business.
A. No pawnbroker, employee, or agent of the pawnbroker shall
enter into a contract for purchase or purchase
transaction with any person under the age of eighteen
(18) years or with any person under the influence of
alcoholic beverages or drugs.
B. No pawnbroker, employee, or agent of the pawnbroker shall
enteL into a contract for the purchase or purchase
transaction with any person known to that employee or
agent to be a thief or to have been convicted of larceny
or burglary, without first notifying the police
Department. Such notice shall not be deemed as
authorization by the City for the pawnbroker to enter
into any contract with such person.
C. With respect to a contract for purchase, no pawnbroker,
employee or agent of a pawnbroker may permit any customer
to become obligated on the same day in any way under more
than one contract for purchase agreement with the
pawnbroker which would result in the pawnbroker obtaining
a greater amount of money than would be permitted if
pawnbroker and customer had entered into only one
contract for purchase covering the same tangible personal
property.
D. No pawnbroker, employee or agent of a pawnbroker shall
violate the terms of the contract for purchase.
E. No pawnbroker, employee or agent of a pawnbroker shall
enter into a contract for purchase or purchase
transaction for any tangible personal property wherein
the identification number, serial number, model number,
brand name, owner's identification number or other
identifying marks on such property have been totally or
partially obscured.
F. No pawnbroker, employee or agent of a pawnbroker shall
enter into a contract for purchase or a purchase
transaction when the property which is the subject of the
contract for purchase or purchase transaction is other
than tangible property.
G. No pawnbroker, employee or agent of a pawnbroker shall
ask, demand or receive any greater rate of interest,
commission and compensation than the total rate of one-
tenth of the original purchase price for each month, plus
the original purchase price, on amounts of fifty dollars
or over, or one-fifth of the original purchase price for
each month, plus the original purchase price, on amounts
under fifty dollars. No other charges shall be made by
the pawnbroker upon renewal of any contract for purchase
14
-
or at any other time. In the event any such charges are
made, the contract shall be void. Any contract for the
payment of commissions by the customer for making a
contract for purchase on tangible personal property shall
be null and void.
The violation of this Section by an agent or employee of a
pawnbroker shall be deemed to be a violation of this Section by the
pawnbroker.
Section 11- 1 87 .
Intermediate payment: receipts.
Pawnbrokers shall accept intermediate payments, without
penalty, upon contracts for purchase which have not yet matured
when presented with the pawn ticket, and shall treat the amount
tendered as a payment upon the existing contract for purchase. A
receipt showing the date of the payment and the amount shall be
given to the customer for all monies received on account of or in
payment of loans made under a contract for purchase. The total
amount of money presented shall be applied against the amount of
indebtedness. In no event shall late charges, collection fees or
other such service charges be deducted from the amount of the
payment tendered to the pawnbroker.
Sale of tanqible personal property: notice to
customer.
Section 11-188.
If the customer fails or neglects to redeem such property upon
the maturity of the contract for purchase by repayment of the
balance of the principal and payment of all accrued interest
charges, the pawnbroker shall immediately, upon the maturity of the
contract for purchase, mail with sufficient postage a notice of the
impending sale of the property delivered under the contract. Such
notice shall be mailed to the customer at the address shown on the
contract for purchase pertaining to the transaction. Ten (10) days
shall be allowed from the date of mailing of the notification for
the customer to appear and reclaim the property or make
satisfactory payments upon it. The pawnbroker shall not sell or
otherwise dispose of the property prior to the expiration of the
ten-day period.
Section 11-189. Hold orders and surrender of property.
A. Any police officer may order a pawnbroker to hold any
tangible personal property deposited with or in custody
of any pawnbroker for purposes of further investigation.
A hold order shall be effective upon verbal notification
to the pawnbroker by an authorized agent of the Police
Department. No sale or other disposition may be made of
such property held by any pawnbroker while the hold order
remains outstanding. A hold order shall supersede all
other provisions of this Article, and any sale or other
15
disposition of the property after the pawnbroker has been
notified by the Police Department of a hold order shall
be unlawful and a violation of this Article.
B. If any police officer determines that any article of
personal property held by a pawnbroker is stolen or
illegally obtained property, such officer may immediately
confiscate such property and must provide the pawnbroker
with a receipt, case report number and the police report
cover sheet setting forth the basis for the confiscation.
Section 11-190. Hours establishments closed.
It is unlawful for any pawnbroker to be open for business or
to operate the establishment wherein the business of pawnbroking
is carried on during the following hours and on the following days:
A. After 9:00 p.m. and before 8:00 a.m. on any day the
business is open.
B. On Sunday.
C. On January 1, commonly called New Year's Day; on the last
Monday of May, commonly called Memorial Day; on July 4,
commonly called Independence Day; on the first Monday of
September, commonly called Labor Day; on Thanksgiving
Day; and on December 25, Christmas Day.
Section 11-191. Liabilitv of ~awnbroker.
A. A pawnbroker who accepts any article in a purchase or
contract of purchase transaction from a customer who is
not the owner thereof obtains no title in the article
either by reason of the expiration of the contract or by
transfer of the receipt to the pawnbroker by the customer
or holder thereof. Ignorance of the fact that the
article was lost or stolen shall not be construed to
effect the question of the title. If the pawnbroker
shall sell such article to a third person, the pawnbroker
shall remain liable to the original owner in an action to
recover the article. The lawful owner may, upon proof of
his or her ownership of the article lost or stolen, claim
the same from the pawnbroker or recover the same by
appropriate legal means including, without limitation,
forfeiture of the fair market value of such article out
of the bond required by Section 11-176.
B. A pawnbroker shall be liable for the loss of tangible
personal property or part thereof or for damages thereto,
whether caused by fire, theft, burglary or otherwise,
resulting from his or her failure to exercise reasonable
care in regard to it.
16
Section 11-192. Procedure for movinq business.
A pawnbrokers License issued under this Article is specific to
the location of the pawnbroker's business at the time the license
is issued. Any change in location of a licensed pawnbroker under
this Article shall be treated as a new license application, with
the exception that the Bond Required by Section 11-176, which may
be used for an approved new location upon notification of change of
address to the surety issuing the bond. A copy of the change of
location notice to the surety shall be included in the new
application.
Section 11-193. Violations and penalties.
1. Any person, firm, or corporation, violating any of the
provisions of this Article shall be liable for a fine or
penalty of not more than one thousand dollars
($1,000.00). Each day a violation of the provisions of
this Article exists shall be considered a separate
punishable offense.
Section 2. Safety Clause. The City Council hereby finds,
determines, and declares that this Ordinance is promulgated under
the general police power of the City of Wheat Ridge, that it is
promulgated for the health, safety, and welfare of the public, and
that this Ordinance is necessary for the preservation of health and
safety and for the protection of public convenience and welfare.
The City Council further determines that the Ordinance bears a
rational relation to the proper legislative object sought to be
obtained.
Section 3. Severability. If any clause, sentence, paragraph, or
part of this Ordinance or the application thereof to any person of
circumstances shall for any reason be adjudged by a court of
competent jurisdiction invalid, such judgment shall not affect,
impair or invalidate the remainder of this Ordinance or its
application to other persons or circumstances.
Section 4. Inconsistent ordinances. All other ordinances or
portions thereof inconsistent or conflicting with this ordinance or
any portion hereof are hereby repealed to the extent of such
inconsistency or conflict.
Section 5. Effect of repeal or modification. The repeal or
modification of any provision of the Code of the City of Wheat
Ridge by this ordinance shall not release, extinguish, alter,
modify, or change in whole or in part any penalty, forfeiture, or
liability, either civil or criminal, which shall have been incurred
under such provision, and each provision shall be treated and held
as still remaining in force for the purposes of sustaining any and
all proper actions, suits, proceedings, and prosecutions for the
17
-
enforcement of the penalty, forfeiture, or liability, as well as
for the purpose of sustaining any judgement, decree, or order which
can or may be rendered, entered, or made in such actions, suits,
proceedings, or prosecutions.
Section 6. Effective date. This Ordinance shall take effect upon
passage.
INTRODUCED, READ, AND ADOPTED on first reading by a vote of 7
to 1 on this 24th day of January , 1994, ordered
published in full in a newspaper of general circulation in the City
of Wheat Ridge and Public Hearing and consideration on final
passage set for Monday , February 14 , 1994, at
7:00 o'clock p.m., in the Council Chambers, 7500 West 29th Avenue,
Wheat Ridge, Colorado.
READ, ADOPTED AND ORDERED PUBLISHED on second and final reading by
a vote of 8 to 0, this 14th day of Februarv
1994.
Signed by the Mayor on this
15th day of
February
, 1994.
-;
f '
{'
I
~JJJ~
DAN WILDE, MAYOR
erk
APPROVED AS TO FORM BY CITY ATTORNEY
~~~~ ~~dd~
RYN L. -SCHR EDER, CITY ATTORNEY
1st Publication: February 1, 1994
2nd Publication: February 22, 1994
Wheat Ridge Sentinel
Effective Date: February 14, 1994
18