City of Franklin, WI Pawnbrokers, Secondhand Article Dealers and Secondhand Jewelry Dealers

A corporation, trust or community chest, fund or foundation, organized and operated exclusively for religious, charitable, scientific, literary or educational purposes or for the prevention of cruelty to children or animals, no part of the net earnings of which inures to the benefit of any private shareholder or individual.

CUSTOMER

A person with whom a pawnbroker, secondhand article dealer or secondhand jewelry dealer, or an agent thereof, engages in a transaction of purchase, sale, receipt, or exchange of any secondhand article or secondhand jewelry.

PAWNBROKER

Any person who engages in the business of lending money on the deposit or pledge of any article or jewelry, or purchases any article or jewelry with an expressed or implied agreement of understanding to sell it back at a subsequent time at a stipulated price.

PERSON IN CHARGE

An employee who has undergone the background check requirements of § 238-6 of the Municipal Code.

REPORTABLE TRANSACTION

Every transaction conducted by a pawnbroker, secondhand article dealer or secondhand jewelry dealer in which an article or articles are received by a pawnbroker, secondhand article dealer or secondhand jewelry dealer through purchase, consignment, or trade, or in which a previous pawn agreement is renewed, extended, voided, or redeemed, or for which a unique transaction number or identifier is generated by their point-of-sale software, or an item is confiscated by law enforcement, except:

The bulk purchase or consignment of new or used articles from a merchant, manufacturer, or wholesaler having an established permanent place of business, and the subsequent retail sale of said articles, provided the pawnbroker, secondhand article dealer or secondhand jewelry dealer must maintain a record of such purchase or consignment that describes each item, and must mark each item in a manner that relates it to that transaction record.

Retail and wholesale sales of articles originally received by pawnbrokers, secondhand article dealers or secondhand jewelry dealers by pawn or purchase, and for which all applicable hold and/or redemption periods have expired.

SECONDHAND ARTICLE

An article listed in Subsections A through BB under the definition of "article," owned by any person, except a wholesaler, retailer, or licensed secondhand article dealer or secondhand jewelry dealer, immediately before the transaction at hand.

SECONDHAND ARTICLE DEALER

Any person, other than an auctioneer, who engages in the business of purchasing or selling secondhand articles and is not a pawnbroker or a secondhand jewelry dealer as defined under this section.

SECONDHAND JEWELRY DEALER

Any person, other than an auctioneer, who engages in any business of any transaction consisting of purchasing, selling, receiving, or exchanging secondhand jewelry, who is not a pawnbroker as defined under this section.

§ 238-2 License required.

License required. No person may engage in business as a pawnbroker, secondhand article dealer or secondhand jewelry dealer in the City of Franklin without first having obtained a license under this section.

Exceptions. The requirements of this section do not apply to the following:

(1)

Transactions involving occasional garage or yard sales, estate sales, coin, gem, antique or stamp shows, conventions or auctions.

(2)

Transactions entered into by a person engaged in the business of junk collector, junk dealer, or scrap processor, as described in § 70.995(2), Wis. Stats.

(3)

Transactions between pawnbrokers or secondhand dealers licensed under this section.

(4)

Any transaction between a buyer of a new article or jewelry and the person who sold the article or jewelry when new which involves a return or exchange of the article or jewelry for a different, new article or jewelry.

(5)

Any transaction as a purchaser or seller of a secondhand article which the person bought from a charitable organization if the secondhand article was a gift to the charitable organization.

(6)

Any transaction while operating as a charitable organization or conducting a sale the proceeds of which are donated to a charitable organization.

§ 238-3 License application.

Any person seeking to obtain a license to conduct business as a pawnbroker, secondhand article dealer or secondhand jewelry dealer must submit an application to the City Clerk. The Clerk shall provide the applicant with application forms approved by the Police Department.

§ 238-4 Issuance of license.

The City shall grant the license if the applicant, including an individual, a partner, a member of a limited liability company or an officer, director or agent of any corporate applicant, has not been convicted within the preceding 10 years of a felony or within the preceding 10 years of a misdemeanor, statutory violation punishable by forfeiture or county or municipal ordinance violation in which the circumstances of the felony, misdemeanor or other offense substantially relate to the circumstances of being a pawnbroker, secondhand jewelry dealer, secondhand article dealer or secondhand article dealer mall or flea market owner.

No license issued under this chapter may be transferred.

Each license is valid from July 1 until the following June 30.

License fee. The annual license fee for a license issued under this chapter shall be in the amount of $500.

§ 238-5 Display of license.

Each license issued under this chapter must be displayed in a conspicuous place visible to anyone entering a licensed premises.

§ 238-6 Investigation of applicant.

The Police Department shall investigate each applicant for a pawnbroker license, secondhand article dealer license or secondhand jewelry dealer license to determine whether the applicant has been convicted of a felony, misdemeanor, statutory violation punishable by forfeiture, or county or municipal ordinance violation in which the circumstances of the felony, misdemeanor, or other offense substantially relate to the circumstances of the licensed activity and, if so, the nature and date of the offense and the penalty assessed. The results of the investigation shall be furnished to the City Clerk in writing.

§ 238-7 Recordkeeping, electronic reporting, and holding requirements.

Records to be maintained.

(1)

Identification of seller. No pawnbroker, secondhand article dealer, or secondhand jewelry dealer may engage in a transaction of purchase, receipt or exchange of any secondhand article or secondhand jewelry from a customer without securing adequate identification from the customer at the time of the transaction.

(2)

Declaration of seller's ownership.

(a)

For each purchase, receipt, or exchange of any secondhand article or secondhand jewelry from a customer, every pawnbroker, secondhand article dealer, and secondhand jewelry dealer licensed under this chapter shall require the customer to complete and sign, in ink, a property transaction form, in compliance with § 134.71(12), Wis. Stats. No entry on such a form may be erased, mutilated, or changed. The pawnbroker, secondhand article dealer, or secondhand jewelry dealer shall retain an original and a duplicate of each form for not less than one year after the date of the transaction.

(b)

For each purchase, receipt, or exchange of any secondhand article or secondhand jewelry from a customer, every pawnbroker, secondhand article dealer, and secondhand jewelry dealer licensed under this chapter shall keep a permanent record and inventory in such form as the Police Department shall prescribe, in which the dealers shall record legibly in English the name, address and date of birth of each customer and driver's license number or number of other adequate identification presented. The dealer shall also record the date, time, and place of the transaction and an accurate and detailed account and description of each article being purchased, including, but not limited to, any trademark, identification number, serial number, model number, brand name, description by weight and design of such article, and other identifying marks, identifying descriptions of the personal nature, and when applicable, whether the article is a male or female item. The book shall be kept in ink, and no entry in such book shall be erased, mutilated, or changed. The pawnbroker, secondhand article dealer, or secondhand jewelry dealer shall retain an original and a duplicate of each record and inventory for not less than one year after the date of transaction.

(c)

Every pawnbroker, secondhand article dealer, and secondhand jewelry dealer shall on a weekly basis prepare a list that contains the name and address of each customer during the week for which the list was prepared, the date, time, and place of each transaction with each of those customers, and a detailed description of the secondhand article or secondhand jewelry, including the serial number and model number, if any. The dealer or pawnbroker shall retain the list for not less than one year after the date on which the list was prepared.

(d)

The dealer or pawnbroker shall also obtain a written declaration of the seller's ownership which shall state whether the article or jewelry is totally owned by the seller, how long the seller has owned the article or jewelry, whether the seller or someone else found the article or jewelry and, if the article or jewelry was found, the details of its finding. The dealer or pawnbroker shall retain an original and duplicate of the declaration for not less than one year after the date of the transaction.

(e)

The seller shall sign, in ink, his or her name in such inventory register and on the declaration of ownership.

(f)

Such inventory registers and declarations of ownership shall be made available to any police officer for inspection at any time that the dealer's principal place of business is open or within one business day of an officer's request.

(3)

Digitized photographs.

(a)

Effective 60 days from the date of notification by the Police Department of acceptable photographic or video standards, the licensee must also take a color photograph or color video recording of every item a pawnbroker, secondhand article dealer or secondhand jewelry dealer has purchased that does not have a unique serial or identification number permanently engraved or affixed. This requirement does not apply to computer software, computer or video games, DVDs or video games, and golf clubs.

(b)

When a photograph is taken, it must be maintained in such a manner that the photograph can be readily matched and correlated with all other records of the transaction to which they relate.

(c)

Photographs must be available to any police officer upon request.

(d)

Items photographed must be accurately depicted.

(e)

Effective 60 days from the date of notification by the Police Department, licensees must fulfill this photograph requirement by submitting them as digital images, in a format specified by the Police Department, electronically cross-referenced to the reportable transaction they are associated with.

(4)

Digital video system. The licensee shall maintain a digital video system that records all transactions as they occur and captures the entire transaction. The video also must capture a full face shot of the person conducting the transaction, and must be maintained in such a manner that the video can be readily matched and correlated with all other records of the transaction to which they relate. Such videos must be available to any police officer upon request. Entries of required digital images shall be retained a minimum of 90 days.

Firearms and jewelry records to be maintained.

(1)

Report of receipt. Every pawnbroker, secondhand article dealer, or secondhand jewelry dealer in the City of Franklin who obtains by pawn, purchase or exchange any secondhand firearm, whether smooth bore, shotgun, rifle or handgun, shall, within one business day after receiving such firearm, report to Police Department the fact that the same has been received, with the name, address, date of birth, and description of the person from whom such firearm was received, together with a description of such firearm.

(2)

Every pawnbroker, secondhand article dealer, or secondhand jewelry dealer in the City of Franklin who obtains in pawn, purchase or exchange any secondhand article made in whole or in part of platinum, gold, silver, copper, brass, bronze or other precious metal, or precious or semiprecious stones or pearls, shall, within one business day after receiving such article, report to the Police Department the fact that same has been received, with the name, address, date of birth, and description of the person from whom such jewelry was received, together with the description of such article.

Inspection of records. Records must at all reasonable times be open to inspection by any police officer. Data entries shall be retained for at least one year from the date of transaction. Digital images or video recordings shall be retained a minimum of 30 days.

Electronic reporting.

(1)

Daily reports to Police Department. A licensee must submit every reportable transaction to the Police Department within 24 hours of the transaction. A licensee must provide to the Police Department all reportable transaction information by transferring it from licensee's computer to the Northeastern Wisconsin Property Reporting System ("NEWPRS"). All required records must be transmitted completely and accurately in accordance with standards and procedures established by the issuing authority.

(a)

If a licensee is unable to successfully transfer the required reports to NEWPRS within 24 hours of the transaction, the licensee must provide the Police Department, upon request, printed copies of all reportable transactions, along with the video recording(s) for that date, no later than noon the next business day after the failure occurred.

(b)

If the problem is determined to be in the licensee's system or with the licensee's Internet connection, and is not corrected by the close of the first business day following the failure, the licensee must continue to provide the required reports as detailed in this section and shall be charged a reporting failure penalty of $100 daily, until the error is corrected.

(c)

If the problem is determined to be outside the licensee's system, the licensee must continue to provide the required reports in this section and resubmit all such transactions via the Internet when the error is corrected.

(d)

If a licensee is unable to capture, digitize or transmit the photographs required under this section, the licensee must immediately take all required photographs with a still camera, cross-reference the photographs to the correct transaction, and make the pictures available to the Police Department upon request.

(e)

Regardless of the cause or origin of the technical problems that prevented the licensee from uploading the licensee's reportable transactions, upon correction of the problem, the licensee shall upload every reportable transaction from every business day the problem had existed.

(f)

The Police Department may, upon presentation of extenuating circumstances, delay the implementation of the daily reporting penalty.

Holding.

(1)

Any secondhand article or secondhand jewelry purchased or received by a pawnbroker shall be kept on the pawnbroker's premises or other place for safekeeping for not less than 30 days after the date of purchase or receipt, unless the person known by the pawnbroker to be the lawful owner of the secondhand article or secondhand jewelry recovers it. Any secondhand article or jewelry purchased by a secondhand article dealer or secondhand jewelry dealer shall be kept on the dealer's premises or other place for safekeeping for not less than 21 days after the date of purchase or receipt. Any article or jewelry shall be held separate and apart from any other transaction and shall not be changed or altered in any manner. The dealer shall permit the Chief of Police or any other police officer designated by the Chief to inspect the article or jewelry during the holding period within one business day of an officer's request.

(2)

Section 238-7E(1) above does not apply if the secondhand article or secondhand jewelry transaction is submitted to the police electronically as described in § 238-7D(1). Any secondhand article or secondhand jewelry purchased or received by a pawnbroker, secondhand article dealer, or secondhand jewelry dealer that is submitted to the police electronically as described in § 238-7D(1) shall be kept on the pawnbroker's, secondhand article dealer's or secondhand jewelry dealer's premises or other place for safekeeping for not less than 15 days after the date the report is electronically submitted. Any secondhand article or secondhand jewelry shall be held separate and apart from any other transaction and shall not be changed or altered in any manner. The dealer shall permit the Chief of Police or any other police officer designated by the Chief to inspect the article or jewelry during the holding period within one business day of an officer's request.

(3)

Any coin or bullion purchased by a pawnbroker, secondhand article dealer, or secondhand jewelry dealer shall be kept on the dealer's premises or other place for safekeeping for not less than 48 hours after the date of purchase or receipt. Any coin or bullion shall be held separate and apart from any other transaction and shall not be changed or altered in any manner. The dealer shall permit the Chief of Police or any other police officer designated by the Chief to inspect the coin or bullion during the holding period.

(4)

No holding periods apply to any secondhand articles or secondhand jewelry consigned to a pawnbroker, secondhand article dealer, or secondhand jewelry dealer.

(5)

The Chief of Police, or any police officer designated by the Chief, in his or her discretion, may cause any object which has been exchanged or purchased by a dealer licensed under this chapter, which he or she has reason to believe was not sold or exchanged by the lawful owner to be held for the purposes of identification or investigation for such additional reasonable length of time as the Chief of Police or designee deems necessary.

(6)

Redemption period. Any person pledging or depositing an item for security must have a minimum of 60 days from the date of that transaction to redeem the item before it may be forfeited and sold. During the sixty-day holding period, items may not be removed from the licensed location except as provided in § 238-7E(5). Licensees are prohibited from redeeming any item to anyone other than the person to whom the receipt was issued, or to any person identified in a written and notarized authorization to redeem the property identified in the receipt, or to a person identified in writing by the pledger at the time of the initial transaction and signed by the pledger, or with approval of the Chief of Police, or Chief's designee. Written authorization for release of property to persons other than the original pledger must be maintained along with original transaction record in accordance with § 238-7A, above. An individual may redeem an item 72 hours after the item was received on deposit, excluding Sundays and legal holidays.

§ 238-8 Person in charge.

Every pawnbroker, secondhand article dealer or secondhand jewelry dealer shall have on premises a person in charge at all times that the pawnbroker, secondhand article dealer or secondhand jewelry dealer is open to the public.

§ 238-9 Transactions with minors prohibited.

No pawnbroker, secondhand article dealer, or secondhand jewelry dealer may engage in a transaction of purchase, receipt or exchange of any secondhand article or secondhand jewelry from an unemancipated minor unless the minor is accompanied by his or her parent or guardian at the time of the transaction or the minor provides written consent from his or her parent or guardian to engage in the transaction.

§ 238-10 Revocation of license.

The City may, upon sufficient cause, suspend, revoke, or deny renewal of any license issued under this chapter. Cause for suspending, revoking or denying renewal of such license shall include, but not be limited to, the following:

Violations of this chapter; violations of §§ 134.71, 943.10 (Burglary), 943.11 (Entry into locked vehicle), 943.12 (Possession of burglarious tools), 943.20 (Theft), 943.201 (Unauthorized use of an individual's personal identifying information or documents), 943.203 (Unauthorized use of an entity's identifying information or documents), 943.34 (Receiving stolen property), 943.37 (Alteration of property identification marks), 943.38 (Forgery), 943.39 (Fraudulent writings), 943.392 (Fraudulent data alteration), 943.40 (Fraudulent destruction of certain writings), 948.62 (Receiving stolen property from a child), and 948.63 (Receiving property from a child) of the Wisconsin Statutes; or violations of local ordinances in conformity with such provisions.

Any fraud, misrepresentation, or false statement contained in the application for a license.

§ 238-11 Violations and penalties.

Any person, firm or corporation violating this chapter shall, upon conviction for a first offense, forfeit $250, and in default of payment shall be imprisoned in the House of Correction until such forfeiture is paid, but not more than the number of days set forth in § 800.095, Wis. Stats.

Any person, firm or corporation violating this chapter shall, upon conviction for the second offense, forfeit $500, and in default of payment shall be imprisoned in the House of Correction until such forfeiture is paid, but not more than the number of days set forth in § 800.095, Wis. Stats.

Any person, firm or corporation violating this chapter shall, upon conviction for the third offense, be ordered to cease business operations for a period of 10 days and shall also forfeit $500, and in default of payment shall be imprisoned in the House of Correction until such forfeiture is paid, but not more than the number of days set forth in § 800.095, Wis. Stats. In addition, upon any third offense, without regard to citation proceedings or a conviction thereupon, the license may be subject to revocation proceedings.