[HISTORY: Adopted by the Town Board of the Town of Huntington 8-11-2021 by L.L. No. 40-2021. Amendments noted where applicable.]
General Business Law § 40 authorizes the licensing authority of the local governing body to issue licenses to carry on the business of a collateral loan broker. Therefore, this chapter is being enacted, pursuant to the requirements and standards set forth in Article 5 of the General Business Law, to set up a procedure by which the Office of the Town Clerk can issue said licenses.
As used in this chapter, the following terms shall have the meanings indicated:
COLLATERAL LOAN BROKERS
Any person, partnership, corporation or entity:
A. 
Loaning money on deposit or pledge of personal property, other than securities or printed evidences of indebtedness; or
B. 
Dealing in the purchasing of personal property on condition of selling it back at a stipulated price; or
C. 
Designated or doing business as a furniture storage warehouseman and loaning and advancing money upon goods, wares or merchandise pledged or deposited as collateral security.
As required by § 53 of the General Business Law, a copy of the collateral loan broker's registration statement shall be filed in the Office of the State Comptroller for the State of New York prior to the establishment of any premises as a collateral loan broker business.
A. 
Pursuant to Article 5 of the General Business Law, and in conformance with the provisions of this chapter, a license shall be obtained from the Town Clerk prior to the commencement of any collateral loan broker business in the Town of Huntington. The fee for such license shall be the maximum amount authorized under §§ 40 and 41 of Article 5 of the General Business Law or such successor sections of that law as may be authorized by the New York State Legislature. Pursuant to § 41 of Article 5 of the General Business Law, the annual license fee shall be two hundred and fifty ($250.00) due yearly from the date of issuance of the license, or as may be set forth by successor law.
B. 
No person, corporation, partnership, firm or association shall carry on the business of collateral loan broker within the Town of Huntington without first obtaining a collateral loan broker license.
C. 
Bonds; fees; conditions. Each collateral loan broker shall furnish a bond to the Town of Huntington, with fees and conditions as set forth in § 41 of Article 5 of the General Business Law, or successor law. Pursuant to § 41 of Article 5 of the General Business Law, the amount of the bond shall be in the penal sum of ten thousand dollars ($10,000.00). Any action on said bonds shall be in accordance with § 42 of Article 5 of that law or successor law.
D. 
All licenses shall be placed and, at all times, displayed in a conspicuous place at the licensee's place of activity or business for which it is issued.
E. 
Sign requirements.
(1) 
A collateral loan broker purchasing articles from the general public shall display, in a conspicuous place in his or her shop, a sign stating:
PURSUANT TO ARTICLE 5 OF THE NEW YORK STATE GENERAL BUSINESS LAW, A COLLATERAL LOAN BROKER IS AUTHORIZED TO PROVIDE LOANS ON ITEMS PLEDGED OR PURCHASE ITEMS OFFERED FOR SALE. YOU HAVE THE RIGHT TO USE AN ITEM AS COLLATERAL FOR A LOAN OR SELL THE ITEM IN ACCORDANCE WITH STATE AND LOCAL LAW. ALL SALES MAY BE CANCELED WITHIN FIVE BUSINESS DAYS IN ACCORDANCE WITH SAID ARTICLE 5. A SALE OF JEWELRY, WATCHES, PRECIOUS STONES, PRECIOUS METALS OR COINS CAN BE CONVERTED TO A LOAN WITHIN 14 DAYS FROM THE DATE OF THE SALE.
(2) 
Such sign shall be made of a durable material, with letters being at least one inch high and having a stroke of at least 1/4 inch. The letters and background shall be of contrasting colors.
F. 
Each license is personal to the licensee. It does not go with title to the land, nor may it be sold, assigned, transferred or disposed of.
G. 
Application for license. Applicants for a license under this chapter must file an application with the Town Clerk of the Town of Huntington, supplied by the Town Clerk, containing the following information:
(1) 
The name and description of the applicant. Individuals operating under a trade name must present a certified copy of the trade name certificate filed in the Suffolk County Clerk's office. A partnership conducting business, whether or not under a trade name, must submit a certified copy of the partnership certificate filed in the Suffolk County Clerk's office when the partnership was formed. A corporation must furnish a copy of the filing receipt for the certificate of incorporation from the New York State Secretary of State. A corporation from outside New York State must furnish a copy of its application for authority to do business in New York State from the New York State Secretary of State.
(2) 
The address of the applicant (local and legal).
(3) 
That the applicant is of the legal age of eighteen years old.
(4) 
That the applicant is a citizen of the United States, whether by birth or naturalization, or an alien lawfully admitted for permanent residence in the United States; if by naturalization, the date and place where obtained. The naturalization certificate or permanent Board of Elections personal registration card may be used as proof of citizenship.
(5) 
A statement as to whether or not the applicant has ever been convicted of or is now under charge of any crime, misdemeanor or violation of any municipal ordinance, the nature of the offense and the punishment or penalty assessed thereof, and such other facts or evidence as is deemed necessary to establish that the applicant is a person fit and capable of properly conducting the activity or business for which the license is sought.
(6) 
A description of the exact type of business the applicant intends to conduct.
(7) 
The name and address of the owner or owners of the land and the nature of the right of occupancy of the applicant to the use of such land.
(8) 
Two photographs of the applicant taken not more than 60 days prior to the filing of the application. Said photographs shall be two inches by two inches, showing the head and shoulders of the applicant in a clear and distinguishing manner. Two photographs and fingerprints are required of each individual applicant; two photographs and fingerprints are required of each partner; no photographs are required of corporate applicants, but all officers must be fingerprinted, as well as any stockholder of 10% or more of the stock.
(9) 
If the applicant is a corporation, the name and address upon whom process or other legal notice may be served.
(10) 
Fingerprints.
(a) 
All applicants shall be fingerprinted and the fingerprints and any applicable fees shall be submitted to the Division of Criminal Justice Services in the form and manner prescribed by the Division of Criminal Justice Services.
(b) 
The New York State Division of Criminal Justice Services shall return such criminal history record information as may exist in its files or a statement that no such relevant information exists, such record to be forwarded to the Town Clerk for review.
(c) 
Upon its return by the New York State Division of Criminal Justice Services to the Town Clerk, if the application is approved by the Town Clerk, and upon payment of the prescribed license fee, the Town Clerk shall prepare and deliver to the applicant therefor the license required by this chapter.
(d) 
If the applicant is a corporation or partnership, a full set of fingerprints of all officers of said corporation or of all of the partners must be furnished in the same manner described hereinabove, including the appropriate fee therefor.
(e) 
Any felonies and/or misdemeanors on the applicant's record shall disqualify the applicant from obtaining a license or permit, unless after submission of a certificate of relief from disabilities as provided for in Article 23 of the Correction Law, the Town Clerk determines that issuance of a license would not endanger the health, safety and welfare of the residents of the Town of Huntington.
(f) 
New fingerprints for each renewal period may be waived by the Town Clerk, unless the license issued under the provisions of this chapter has lapsed for a period of time in excess of one year.
H. 
Issuance of license.
(1) 
Upon receipt of the license application and upon the approval by the Town Clerk of the Town of Huntington and the payment of the prescribed fees and bonds required of the applicant, the Town Clerk shall prepare and deliver said license to the applicant.
(2) 
Every license issued hereunder shall be signed at the direction and in the name of the Town Clerk and sealed with the seal of the Town of Huntington.
(3) 
The Town Clerk shall keep a record of all licenses issued, as well as any other matters herein described, provided that criminal history record information received by the Division of Criminal Justice Services shall be retained in the form and manner prescribed by the Division of Criminal Justice Services.
(4) 
No license shall be granted under this chapter to any collateral loan broker:
Who has been convicted of any offense which, under the laws of the State of New York, constitutes a crime involving moral turpitude.
(a) 
Who has been found by any court of the state to have practiced any fraud, deceit or misrepresentation in the conduct of the collateral loan broker business unless the Town Clerk, after Town Board approval, shall decide in any particular case upon the facts there presented that it is proper to issue the license applied for.
(b) 
Whose license under this chapter has been revoked at any time during the year prior to the time of the application for the license.
(c) 
Whose license has been suspended under this chapter, and the period of such suspension has not expired at the time of this application for the license.
A. 
Pursuant to Article 5 of the General Business Law, or successor law, every person licensed as a collateral loan broker shall, during every two year period between June thirtieth and June twenty-ninth in odd-numbered years, complete not less than twelve hours of continuing education instruction offered in a course or program approved by the Town Clerk.
B. 
Every collateral loan broker which employs more than three employees, shall designate one individual as the manager of the collateral loan broker business. Upon such designation the Town Clerk shall be provided notice by such broker of the individual who has been designated as manager of the business. Every individual designated as the manager of a collateral loan broker business shall, during every two year period between June thirtieth and June twenty-ninth in odd-numbered years, complete not less than eight hours of continuing education instruction for such managers offered in a course or program approved by the Town Clerk.
C. 
Each collateral loan broker shall designate a manager for each location at which such broker conducts business and employs more than three employees and every such manager shall comply with the provisions as set forth above in (B).
D. 
Each approved provider of continuing education instruction pursuant to this section and each collateral loan broker shall maintain the records of the provision or receipts of such instruction for not less than four years.
E. 
The failure to comply with the provisions of the section shall be grounds for the suspension, revocation or refusal to issue any license issued pursuant to this Chapter.
Any collateral loan broker engaged in the purchase or sale of secondhand articles shall comply with § 47 of Article 5 of the General Business Law, or successor law.
In interpreting and applying the provisions of this chapter, the rule of interpretation applicable to remedial legislation shall be used so that the spirit and intent of this chapter shall be observed. All provisions shall be:
A. 
Considered as minimum requirements; and
B. 
Deemed neither to limit nor repeal any other powers granted to the Town of Huntington under New York State statutes.
This chapter shall not create any liability on the part of the Town of Huntington, its officers, agents or employees, or the Suffolk County Police Department, its officers, agents or employees, for any act or damage caused as a result from reliance on this chapter or any administrative decision lawfully made thereunder.
Any collateral loan broker business shall be permitted to operate in the Town of Huntington only so long as it shall be and continues to be in compliance with all requirements of Article 5 of the General Business Law as well as all other applicable requirements of law.
The Town Clerk shall suspend any license and may recommend that such license be revoked, under the following circumstances:
A. 
Noncompliance. Any violation of or failure to comply with the provisions of this chapter, or any reason for which the original application could have been disapproved.
B. 
Criminality. Conviction of any violation or crime which, in the judgment of the Town Clerk renders the holder incapable of carrying on a business as a collateral loan broker in the Town of Huntington.
C. 
Deception. Fraud, misrepresentation or false statements contained in the application for the license.
A. 
Notices. All notices shall be mailed, by certified mail, return receipt requested, to the applicant and/or holder of a license at the last address on file with the Town Clerk. In the event an appeal from a suspension has been filed, notice of the hearing date shall be mailed, at least five (5) days prior to the date set for such hearing. The notice shall also contain a statement that they are (a) entitled to be represented by legal counsel at the hearing; (b) they will be provided with an opportunity to be heard and may present the testimony of witnesses, experts, and other evidence on their behalf; and (c) that upon their failure to appear at the hearing then in such event, the determination shall be final.
B. 
Suspensions. Notice of suspension shall be given in writing, setting forth the grounds for such action and the right to an appeal hearing before the duly appointed Administrative Hearing Officer. The suspension shall take effect immediately upon issuance and shall not exceed one (1) year. The licensee may appeal the decision of the Town Clerk to suspend the license within thirty (30) days of receipt of such notice. All requests for an appeal shall be in writing and accompanied by the requisite non-refundable fee in the sum of one hundred ($100.00) dollars.
C. 
Revocations. The Town Clerk, after suspending a license, may recommend that the suspended license be revoked. Notice of hearing for revocation shall be given in writing, setting forth the grounds for the revocation and the time and place of such revocation hearing before the duly appointed Administrative Hearing Officer.
D. 
Administrative Hearing Officer. The Town Board shall appoint an Administrative Hearing Officer to conduct revocation hearings or to hear appeals from the suspension of a license. It is the intention of the Town Board to protect the legal rights of the public by insuring every applicant under this chapter receives fair and expeditious due process by providing for an Administrative Hearing Officer to preside over such hearings. In order to accomplish this goal, the Town Board is exercising its authority under § 10(l)(ii)(a)(12) of the Municipal Home Rule Law, § 136(1) and § 137 of the Town Law and any other applicable provision of law now or hereafter enacted, to supersede and/or expand upon the applicable provisions of § 137 of the Town Law, and any other applicable or successor law, in order to permit an appointed Administrative Hearing Officer to preside over revocation hearings and appeals from the suspension of a license.
E. 
E. Hearings. All appeals from the decision of the Town Clerk and revocation hearings shall be processed as follows:
(1) 
All hearings shall be administered by the Administrative Hearing Officer, shall be recorded, and may be adjourned only upon good cause shown and at the discretion of the Administrative Hearing Officer.
(2) 
The Administrative Hearing Officer’s findings and recommendations shall be filed with the Town Clerk and mailed to those who requested the hearing or their attorney(s), if known. The Town Clerk shall forward the recommendations of the Administrative Hearing Officer to the Town Attorney, and to the Town Board for ultimate determination. The Town Board shall consider the evidence, and may adopt or reject, in whole or in part, any portion of the Hearing Officer’s report, with or without conditions, as deemed necessary by the Board.
F. 
Decisions. The decision of the Town Board is final as to the Town of Huntington. The decision shall be mailed to the entity who requested the hearing or their attorney, if known, and filed in the office of the Huntington Town Clerk. The decision of the Town Board is a final agency determination and may be appealed to a court of competent jurisdiction.
A. 
Except as otherwise expressly provided, and in addition to any other remedy for a violation of this chapter, any person committing a violation of any provision of this chapter shall be guilty of an offense punishable by a fine of not less than $25 nor more than $100. Any person found by the Bureau of Administrative Adjudication to have violated any provision of this chapter shall likewise be subject to a monetary penalty in an amount within the range of fines authorized herein.
B. 
Pursuant to § 51 of Article 5 of the General Business Law, the Town Clerk of the Town of Huntington, after a hearing, shall have full power and authority to take appropriate action, including, without limitation, the suspension or revocation of any license previously issued and the imposition of the maximum fines and penalties upon any person violating any provisions of that article and/or of this chapter.