HomeMy WebLinkAboutOrdinances - MC-11-1039 - 11/07/2011 - ADD LEADS ONLINE FOR PAWNBROKERS AND SECONDHAND DEORDINANCE NO. MC-11-1039
An Amendment of the McHenry Municipal Code
relating to Pawnbrokers and Secondhand Dealers
WHEREAS, the City of McHenry, McHenry County, Illinois, is a home rule municipality as
contemplated under Article VII, Section 6, of the Constitution of the State of Illinois, and the
passage of this Ordinance constitutes an exercise of the City's home rule powers and functions
as granted in the Constitution of the State of Illinois; and
WHEREAS, the McHenry Police Department has determined that stolen property and
goods are frequently sold for cash, at pawn shops, cash -for -gold businesses, junk/scrap yards,
jewelry stores, recycling centers .and other businesses which pay money for used or scrap
goods; and
WHEREAS, the Police Department has noted that identifying and retrieving; stolen goods
from such businesses and identifying persons who sold such stolen goods has proven to be a
difficult and labor-intensive task; and
WHEREAS, the Police Department currently subscribes to a service called "LeadsOnline",
which assists law enforcement agencies nationwide in solving a variety of crimes by maintaining
a searchable electronic database of certain identifying information from the sale of used
property and scrap goods; and
WHEREAS, there is no monetary cost or burden placed onto business that report to
LeadsOnline; and
WHEREAS, the McHenry Police Department recommends that all pawnbrokers,
secondhand dealers, recyclers, junk/scrap dealers, etc., operating within the City of McHenry be
licensed and required to report all transactions to LeadsOnline.
NOW THEREFORE, BE IT ORDAINED by the Mayor and McHenry City Council to accept
the recommendation of the McHenry Police Department and approve an amendment to the
McHenry Municipal Code authorizing the licensing and reporting requirements of all
pawnbrokers, secondhand dealers, recyclers, and junk/scrap dealers.
SECTION 1: That the McHenry Municipal Code Chapter 12, Licenses and Permits
Generally, Article 1, Pawnbrokers and Secondhand Dealers, be added as follows:
Article 1.
PAWNBROKERS AND SECONDHAND DEALERS
DIVISION 1. GENERALLY
Sect 12-21 Definitions.
1. Pawnbroker: Every owner, operator or employee engaged in the business of receiving
property in pledge or as security for money or other things advanced to the pawner or
pledger shall be deemed to be a pawnbroker.
2. Secondhand Dealer: Every owner, operator or employee engaged in the business of the
purchase, sale or barter of secondhand articles, including but not limited to recyclable
materials, scrap metal, electronics, video game systems/video games/video game
accessories, jewelry, collectable coins, valuable and/or precious metals and stones, or
household goods, shall be deemed to be a secondhand dealer, whether such dealer
operates from a fixed storefront business, or is conducting business on a temporary,
short term basis from a non fixed location.
3. Licensee: The owner, operator, and all employees of a business licensed under this
article.
4. Junk/Scrap: Manufactured articles or parts that have been discarded and are useful
only as material for reprocessing or recycling.
Sect 12-22 Exemptions.
This article shall not apply to the purchase or sale of used motor vehicles, including motorcycles
and motor driven cycles, as defined in the Illinois Vehicle Code, nor shall it apply to the
charitable organizations that accept donated goods for resale as a fund raising program for the
charity.
Sect 12-23 Electronic Reporting of Transactions.
The Police Department shall enter into a contract for service and maintain its contract for
service with LeadsOnline, or a similar entity as designated by the Chief of Police, in order to
enhance its investigative services to protect both pawnbrokers/secondhand dealers and
members of the general public. In the event of a change to its electronic reporting system, the
City will notify all impacted licensees of the change within a reasonable time prior to such
change.
Every pawnbroker or secondhand dealer shall operate and maintain a computer system with
internet access and photographic: or video capability sufficient for the electronic reporting
requirements described in this article. Any failure or malfunction of such equipment on the
part of the licensee shall not exempt the licensee from the recording/reporting requirements
outlined in section 12-24 of this ari:icle.
Sect 12-24 Record of Transactions„
Throughout the term of the license, every pawnbroker or secondhand dealer shall
report/upload to LeadsOnline, or the City's current electronic reporting system, the below
listed information for each and every transaction conducted during each day they were open
for business by the end of that business day.
A transaction shall consist of all articles brought in to a pawnbroker or secondhand dealer for
sale, barter, trade, pledge or pawn by an individual (pawn/seller) at the same time and date,
and includes the sale of non-junk:/scrap articles by a pawnbroker or secondhand dealer to
another person. Articles brought into a pawnbroker or secondhand dealer by an individual
(pawner/seller) for sale, barter, trade, pledge or pawn at different times on the same date by
the same person shall be considered as separate transactions, regardless of how short the
difference in the time is between those transactions. Separate transactions, either from the
same person or different persons, shall not be combined and reported collectively.
1. Non-junk/scrap articles
A. Purchases/receipts by Licensees
i. All non -junk scrap articles brought in to a pawnbroker or secondhand dealer by an
individual (pawner/seller) for sale, barter, trade,, pledge or pawn during a single
transaction shall be itemized separately. Licensees shall not lump non -junk articles
together (e.g., "five gold chains") and must individually itemize and describe each
individual article.
ii. Each non -junk scrap article brought in to a pawnbroker or secondhand dealer by an
individual (pawner/seller) for sale, barter, trade, pledge or pawn during a
transaction shall be associated with the person (pawner/seller) who brought the
article in. The licensee shall record/report the following information for each such
transaction.
a. A digital photographic image of the photo ID card of the pawner/seller,
sufficiently clear to allow the information on the ID card to be read. The photo
ID must be a currently valid (not expired) card issued by a government entity of
the United States, and must include the pawner's/seller's first and last name,
current address, date of birth, and physical descriptors. In the event the card is
valid but does not contain the pawner's/seller's current address, the licensee
must separately record and report the current address.
b. If the pawner/seller is pawning or selling on behalf of a company or business, the
name, address, and telephone number of such company or business shall also be
recorded/reported.
c. The date and time of the transaction.
d. A complete and thorough description of each non-junk/scrap article including
but not limited to the following:
1. Type of article.
2. Brand name/make/manufacturer (if applicable)
3. Model number (if applicable)
4. Serial number (if applicable)
5. Color/finish
6. Any other identifying marks, writing, engraving, etc.
e. A digital photograph of each non-junk/scrap article purchased or received as
trade, barter, pledge or pawn, sufficiently detailed to allow reasonable
identification of each trade. If the article contains any identifying numbers,
marks, writing, engraving, etc., or any other distinguishing characteristics, the
digital image(s) shall capture same.
B. Sales by licensees
i. All non-junk/scrap articles sold, be it a pawnbroker or secondhand dealer to an
individual shall be itemized separately. Licensees shall not lump non-junk/scrap
articles together (e.g., "five gold chains") and must individually itemize and describe
each individual article.
ii. Each non-junk/scrap articles sold, be it a pawnbroker or secondhand dealer shall be
associated with the person to whom it was sold. The licensee shall record/report
the following information for each such transaction:
a. The name and current address of the purchaser must be recorded/reported — a
photographic image of the purchaser's government issued photo ID is not
required.
b. A digital photograph of the non-junk/scrap articles sold by a pawnbroker or
secondhand dealer to an individual is not required.
2. Junk/scrap articles
A. Purchases/receipts by Licensees
i. Junk/scrap articles may be recorded/reported in bulk, but must specify the weight,
type (e.g., steel, copper, aluminum, etc.) and form (e.g. sheet, cans, pipe, wire, etc.)
of the bulk material.
ii. Each different type and form of junk/scrap bulk material brought into a secondhand
dealer by an individual for sale during a transaction shall be associated with the
person who brought the material in. Licensees shall record/report the following
information for each such transaction:
a. A photographic image of a photo ID card of the seller, sufficiently clear to allow
the information to the ID to be read. The photo ID must be a currently valid (not
expired) card issued by a government entity of the United States, and must
include the pawner/seller's first and last name, current address, date of birth,
and physical descriptors. In the event the card is valid but does not contain the
seller's current address, the licensee must separately record and report the
current address.
b. If the seller is selling, on behalf of a company or business, the name, address, and
telephone number of such company or business shall also be recorded/reported.
c. If the junk/scrap is brought by motor vehicle to a licensee for sale, the make,
model, color, and license plate number of that vehicle shall be
recorded/reported.
d. The date and time of the transaction.
e. A digital photograph or, if the licensee has a video system, video segment of
each individual type and form of bulk purchased by the licensee shall be linked to
the record of that transaction.
B. Sales by Licensees
1. Licensees do not need to record/report any information pertaining to the sale of
junk/scrap material
In the event the electronic reporting system malfunctions or is otherwise not operational, the
licensee shall, at all times during such malfunction or non -operation,, be required to keep
written records of any and all transactions made during the period of malfunction of non -
operation, to include all information required by this section. These written records shall be
reported/uploaded to LeadsOnline,, or the city's current electronic reporting system, as soon as
practicable after the electronic reporting system is functional. No such written records shall be
erased, mutilated, or changed. Written records shall be open and available for review upon
request by the city treasurer or any peace officer during regular business hours.
Sect 12-25 Pawnbrokers issuance of signed receipt.
Every pawnbroker shall, at the time of making any advancement or loan, deliver to the person
pawning or pledging any property a receipt signed by him/her containing an accurate account
and description, in the English language, or all the goods, articles, or other things pawned or
pledged, the amount of money, value, or thing loaned thereon, the time of pledging the same,
the rate of interest to be paid on such loan , and the name and residence of the person making
the pawn or pledge.
Sect 12-26 Pawnbrokers employment of persons under sixteen.
No pawnbroker shall permit any person under the age of sixteen (16) years to take pledges in
pawn for hire/her.
Sect 12-27 Secondhand dealer not to act as a pawnbroker.
No secondhand dealer shall receive any article of thing by way of pledge of pawn, nor shall
he/she loan of advance any sum of money on the security of any article or thing, unless he/she
also happens to be separately licensed as a pawnbroker under this article, and complies with
the specific requirements of Sections 12-25 and 12-26 of this article.
Sect 12-28 Waiting periods.
No articles received on deposit or pledge by any pawnbroker, shall be permitted to be
redeemed or removed from the place of business of such pawnbroker for the space of forty-
eight (48) hours after the delivery of the signed receipt required by Section 2.75.15. No articles
pawned or pledged shall be sold or disposed of by any pawnbroker within one (1) year from the
time the pawner or pledger shall make default in the payment of interest on the money so
advanced by the pawnbroker, unless by the written consent of the pawner or pledger.
No pawnbroker of secondhand dealer shall expose for sale, or sell or barter, or melt,
crush/compact, destroy, or otherwise dispose of any non-scrap/junk article within thirty (30)
days of the time of purchasing or receiving the same, nor until the same has been in or upon
the premises where the same are offered, exposed, bartered, or sold at least thirty (30) days.
There shall be no waiting period for scrap/junk.
Sect 12-29 Prohibited transactions.
No pawnbroker or secondhand dealer, in the course of conducting his business, shall receive
any articles for pawn, pledge, advancement of money, loan, resale, or personal use from:
1. Minors who are under eighteen (18) years of age.
2. Any person appearing to be intoxicated or under the influence of drugs or alcohol.
3. Any person known to the pawnbroker or secondhand dealer to have been involved in the
previous, pawn or sale of stolen property or known to have been convicted of Theft,
Residential Burglary, Burglary, Home Invasion, Vehicular Invasion, Armed Robbery, Robbery,
or Electronic Fencing under the laws of the State of Illinois, or the equivalent laws of any
other state. A pawnbroker or secondhand dealer may access the LeadsOnline "No Buy' list
or contact the McHenry Police prior to conducting a transaction to ensure the prospective
pawner/seller has not been convicted of any such crime.
4. Any person presenting a serial numbered non-scrap/junk article from which the serial
number has been removed or obliterated.
In the event that any of the above enumerated persons shall attempt to conduct a prohibited
transaction, a representative of that business shall notify the police department of the incident
while the person is still present in the business if safe to do so or otherwise as soon as the
person has Deft the business.
Sect 12-30 Report of false/fictitious/forged/altered ID card.
In the event that a person seeking to sell or pawn any item presents to the
owner/operator/employee of a pawn or resale shop what is reasonably believed to be a
false/fictitious/forged/altered ID card, a representative of that business shall notify the police
department of the incident while the person is still present in the business if safe to do so or
otherwise as soon as the person has left the business
Sect 12-31 Report of lost or stolen articles to police.
Every pawnbroker or secondhand dealer who shall receive or be in possession of any goods,
articles, or things under circumstances which would lead a reasonable person to conclude they
have been lost or stolen, or which have been alleged to supposed to have been lost or stolen,
shall immediately notify the police department of such receipt and, forthwith on demand,
exhibit the same to any member of the police department.
Sect 12-32 Return of stolen property.
When any person is found to be the owner of stolen property which has been pawned or
purchased by a pawnbroker or secondhand dealer, such property shall be turned over to the
police department without the payment of the money advanced by the pawnbroker or paid by
the secondhand dealer thereon or any costs or charges of any kind which the pawnbroker or
secondhand dealer may have placed upon the same.
Sect 12-33 Inspection of premises by police.
The police chief or his designee shall have general supervision over all pawnbrokers and
secondhand dealers and shall also have power to inspect their respective places of business and
all articles or things kept therein whenever he/she shall deem it necessary to do so.
Sect 12-34 (Hours of operation.
No business licensed under this article shall purchase or accept as pawn or pledge any goods,
articles, or things whatsoever from any person between the hours of 10:00 p.m. and 6 a.m.
Sect 12-35 Junk/scrap collection vehicles.
Every motor vehicle licensed under this article shall be permanently and conspicuously marked
on both sides and the rear of the vehicle with the name of licensee along with the street
address and phone number of his/her place of business. If the licensee of a junk/scrap
collection vehicle is not a licensed secondhand dealer or has no fixed place of business, his/her
name along; with the street address and phone number of his/her residence shall be
permanently and conspicuously marked on both sides and the rear of the vehicle.
Enforcement off the marking requirement of this section shall be by the police department with
a fine of $500.00 for a first offense and $1,000.00 for any subsequent offenses.
Every applicant for a junk/scrap collection vehicle license must show valid proof of liability
insurance and a safety sticker for second (2"d) division vehicles as required under the Illinois
Vehicle Code. All junk/scrap collection vehicles licensed under this section shall meet all
requirements for second division vehicles under the Illinois Vehicle Code. Violations of the
Illinois Vehicle Code requirements shall be enforced by the police department.
DIVISION 2. LICENSE
Sect 12-36 License Required.
No person shall engage in, carry on, or conduct the business of a pawnbroker or secondhand
dealer, or operate or cause to be operated any motor vehicle for the purpose of collecting or
disposing of junk/scrap within the city, unless he/she is licensed to do so. The license shall be
issued annually with an expiration of April 301h. Licenses issued pursuant to this section shall be
non-transferrable and shall not be pro -rated.
A pawnbroker's license, secondhand dealer's license, and scrap/junk collection vehicle license
are separate from each other and the license shall state which it is for. Persons may hold more
than one (1) license under this section.
A secondhand dealer's license will entitle the licensee to the use of one junk/scrap collection
vehicle. Each additional motor vehicle used for such purpose shall require a separate license.
No license for a junk/scrap collection vehicle shall be issued for less than the full ,annual license
fee.
Sect 12-37 Application.
Any person desiring a license as a pawnbroker or secondhand dealer, or for a junk/scrap
collection vehicle, shall make application in writing to the City, setting out in the aipplication the
full name and residence of the applicant, if an individual, and, if a corporation, the name and
residence of each of its officers. Such application shall also set out the location at which it is
intended or desired to conduct such business, and such other information as the City shall
deem appropriate.
Any false information provided on the application shall result in the denial or revocation of the
license.
Sect 12-38 License to state location of business.
Every license granted to any pawnbroker or secondhand dealer under the provisions of this
division shall designate the place in which the person receiving the license shall be authorized
to carry on such business. Such business shall not be carried on or conducted in any other place
than designated by the license.
Every license granted to any owner of a junk/scrap collection vehicle under the provisions of
this division shall designate the business location and phone number the vehicle operates from,
or if none, the street address and phone number of the licensee's residence.
Sect 12-39 Change of location of business.
In case any person licensed as a pawnbroker or secondhand dealer shall remove his place of
business from the place designated on such license, no business shall be carried on or engaged
in at the new location under such license until written notice of such change has been given by
the licensee to the City, and such change has been noted by the City upon such license. The
address of his/her place of business shall thereupon be changed on the sides of any vehicle
used by such licensed pawnbroker or dealer, and made to correspond with such new place of
business.
Any change in the address listed on the license for a junk/scrap collection vehicle shall be
provided in writing to the City, who shall note such change upon said license. INo junk/scrap
collection shall be carried on or engaged in by the licensee until such notification and change
has been made, and until the address of the licensee's place of business or residence shall be
changed on the sides and rear of the licensed vehicle and made to correspond with such new
address.
Sect 12-40 License to be publicly posted.
Every license granted under this article shall be conspicuously posted for public viewing so as to
be seen by anyone entering the place of business of such pawnbroker or secondhand dealer,
whether the place of business is a fixed storefront or temporary, non -fixed location, or in any
vehicle licensed under this article.
Sect 12-41 Issuance of license; fee.
The City shall grant licenses to such pawn broker, secondhand dealer, or junk/scrap collection
vehicle applicants as shall pass a background check conducted by the police department, to
engage in the business of a pawnbroker or secondhand dealer at, or operated a junk/scrap
collection vehicle from, the place designated in the application for and during the period of
such license.
Any person employed by or providing volunteer work for the licensee at the business or in the
vehicle for which the license is sought, at any time during the period of the license, shall also be
required to pass a background check conducted by the police department, if that employee or
volunteer engages in the collection, receipt, purchase, or sale of secondhand or junk/scrap
articles.
The results of all background checks shall be provided to the City, who shall determine if the
applicant and all employees/volunteers of the business for which the license is sought meet
satisfactory standards of good character.
Sect 12-42 Revocation.
It shall be the duty of the police chief or his designee to report to the City any failure to comply
with the provisions of this article on the part of any such licensee, and the City shall commence
administrative hearing procedures -to revoke the license of such persons or businesses.
DIVISION 3. PENALTIES
Sect 12-43 Penalty provisions.
The penalty for violation of this article shall be revocation of licensure in addition to a fine as
imposed by the Administrative Law Judge pursuant to Chapter 2.25 of this Code.
SECTION 2: If any section, paragraph, subdivision, clause, sentence or provision of this
ordinance shall be adjudged by any Court of competent jurisdiction to be invalid, such
judgment shall not affect, impair, invalidate or nullify the remainder thereof, which remainder
shall remain and continue in full force and effect.
SECTION 3: All ordinances or parts thereof in conflict are hereby repealed to the extent
of such conflict.
SECTION 4: This ordinance shall be in full force and effect upon its passage, approval and
publication iin pamphlet form as provided by law.
Passed and approved this 71' day of November, 2011.
Voting Aye: Santi, Glab, Schaefer, Blake, Wimmer, Peterson, Condon.
Voting Nay: None.
Not Voting: None.
Abstaining: None.
Absent: None.
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M,ayor
ATTEST:
City Cler c