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HomeMy WebLinkAbout2012-019 Secondhand Precious Metal Dealers; Adopting RCW Statues; YMC AdditionORDINANCE NO. 2012 -19 AN ORDINANCE relating to Licenses and Business Regulations; adopting the Revised Code of Washington Statutes regulating Secondhand Precious Metal Dealers; allowing for local prosecution of violations; and adding a new Chapter to Title 5 of the City of Yakima Municipal Code entitled, "Secondhand Precious Metal Dealers." BE IT ORDAINED BY THE CITY OF YAKIMA: Section 1. Section 5.70 entitled Secondhand Precious Metal Dealers is hereby enacted as a new section of the City of Yakima Municipal Code to read as follows: Chapter 5.70 SECONDHAND PRECIOUS METAL DEALERS Sections: 5.70.010 Definitions 5.70.020 -RCW Statutes Adopted RCW 19.60.025 RCW 19.60.042 RCW 19.60.057 RCW 19.60.067 RCW 19.60.077 RCW 19.60.095 5.70.030 Severability 5.70.010 Definitions: The following definitions apply to this Chapter 1. "Melted metals" means metals derived from metal junk or precious metals that have been reduced to a melted state from other than ore or ingots which are produced from ore that has not previously been processed. 2. "Precious metals" means gold, silver, and platinum. 3. "Secondhand precious metal dealer" means any person or entity engaged in whole or in part in the commercial activity or business of purchasing, selling, trading, consignment selling, or otherwise transferring for value, more than three times per year, secondhand property that is a precious metal, whether or not the person or entity maintains a permanent or fixed place of business within the state, or engages in the business at flea markets or swap meets. The terms "precious metal" and cim /ordinance/ preciousmetals /page 1 of 2 "secondhand property," for purposes of transactions by a secondhand precious metal dealer, do not include: (a) Gold, silver, or platinum coins, or other precious metal coins, that are legal tender, or precious metal coins that have numismatic or precious metal value, (b) gold, silver, platinum, or other precious metal bullion, or (c) gold, silver, platinum, or other precious metal dust, flakes, or nuggets. 4. "Transaction" means a pledge, or the purchase of, or consignment of, or the trade of any item of personal property by a pawnbroker or a secondhand dealer from a member of the general public. 5.70.020 RCW Statutes Adopted: The following RCW sections, as currently enacted or as hereafter amended or recodified from time to time, are hereby adopted by reference and shall be given the same force and effect as if set forth herein in full: RCW 19.60.025 Duty to record information — Precious metal property. RCW 19.60.042 Report to chief law enforcement officer— Precious metal dealers. RCW 19.60.057 Retention of precious metal property — Inspection. RCW 19.60.067 Secondhand precious metal dealers — Prohibited acts Penalty. RCW 19.60.077 Precious metal dealers — Licensure required. RCW 19.60.095 Precious metal sales — Hosted home parties. 5.70.030 Severability: If any provision of this Chapter or its application to any person or circumstance is held invalid, the remainder of the Chapter or the application of the provision to other persons or circumstances is not affected. Section 2. This ordinance shall be in full force and effect 30 days after its passage, approval, and publication as provided by law and by the City Charter. PASSED BY THE CITY COUNCIL, signed and approved this 19th day of June, 2012. Micah Ca ley, Mayor Publication Date: Effective Date: cim /ordinance/ preciousmetals /page 2 of 2 ITEM TITLE: Ordinance relating to Licenses and Business Regulations; adopting the Revised Code of Washington Statutes regulating Secondhand Precious Metal Dealers; allowing for local prosecution of violations; and adding a new Chapter to Title 5 of the City of Yakima Municipal Code entitled, "Secondhand Precious Metal Dealers." SUBMITTED BY: Joe Caruso, Codes Administration Manager Cynthia Martinez, Assistant City Attorney CONTACT Cynthia Martinez/509- 575 -6030 PERSON /TELEPHONE: SUMMARY EXPLANATION: The market price of gold and silver has increased significantly in recent years and there has been a proliferation of secondhand dealers, including temporary, transient secondhand businesses, engaging in "cash for gold" type precious metal transactions. The increasing number of "cash for gold" type transactions in communities and neighborhoods throughout Washington has been linked to increased crimes involving the theft of gold and other precious metal objects, including home burglaries, robberies, and other crimes. Frequently, these "cash for gold" type operations are operated by persons desiring to exploit unsuspecting consumers based on current market conditions. To prevent these conditions the state legislature passed an act relating to the regulation of secondhand precious metal dealers. The "cash for gold" type businesses in the City of Yakima are required to comply with the State law at this time and the City of Yakima Codes Division in partnership with the Yakima Police Department have been educating those businesses regarding the regulations. Passing this ordinance will allow local prosecution of those individuals who disregard the regulations. Resolution Contract: Contract Term: Insurance Required? No Funding Source: Ordinance X Mail to: Amount: Other (specify) Expiration Date: Phone: APPROVED FOR SUBMITTAL: �%�;; _ ,�,'�� �� City Manager STAFF RECOMMENDATION: Pass ordinance. BOARD /COMMISSION RECOMMENDATION: None. ATTACHMENTS: Click to download ❑ Ordinance O Text of RC Ws to be adopted. Full text of RCWs to be adopted.* *only those definitions pertinent to the regulation of secondhand precious metal dealers are included in the ordinance. RCW 19.60.010 Definitions. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter. (1) "Loan period" means the period of time from the date the loan is made until the date the loan is paid off, the loan is in default, or the loan is refinanced and new loan documents are issued, including all grace or extension periods. (2) "Melted metals" means metals derived from metal junk or precious metals that have been reduced to a melted state from other than ore or ingots which are produced from ore that has not previously been processed. (3) "Metal junk" means any metal that has previously.been milled, shaped, stamped, or forged and that is no longer useful in its original form, except precious metals. (4) "Nonmetal junk" means any nonmetal, commonly discarded item that is worn out, or has outlasted its usefulness as intended in its original form except nonmetal junk does not include an item made in a former period which has enhanced value because of its age, (5) 'Pawnbroker" means every person engaged, in whole or in part, in the business of loaning money on the security of pledges of personal property, or deposits or conditional sales of personal property, or the purchase or sale of personal property (6) 'Precious metals" means gold, silver, and platinum. (7) "Secondhand dealer" means every person engaged in whole or in part in the business of purchasing, selling, trading, consignment selling, or otherwise transferring for value, secondhand property including metal junk, melted metals, precious metals, whether or not the person maintains a fixed place of business within the state. Secondhand dealer also includes persons or entities conducting business, more than three times per year, at flea markets or swap meets. (8) "Secondhand precious metal dealer" means any person or entity engaged in whole or in part in the commercial activity or business of purchasing, selling, trading, consignment selling, or otherwise transferring for value, more than three times per year, secondhand property that is a precious metal, whether or not the person or entity maintains a permanent or fixed place of business within the state, or engages in the business at flea markets or swap meets. The terms "precious metal' and "secondhand property, ".for purposes of transactions by a secondhand precious metal dealer, do not include: (a) Gold, silver, or platinum coins, or other precious metal coins, that are legal tender, or precious metal coins that have numismatic or precious metal value, (b) gold, silver, platinum, or other precious metal bullion, or (c) gold, silver, platinum, or other precious metal dust, flakes, or nuggets. (9) "Secondhand property" means any item of personal property offered for sale which is not new, including metals in any form, except postage stamps, coins that are legal tender, bullion in the form of fabricated hallmarked bars, used books, and clothing of a resale value of seventy -five dollars or less, except furs. (10) "Transaction" means a pledge, or the purchase of, or consignment of, or the trade of any item of personal property by a pawnbroker or a secondhand dealer from a member of the general public. RCW 1 3.60.025 Duty/ t® record information -- Precious metal property. (1) For any transaction involving property consisting of a precious metal bought or received from an individual, every secondhand precious metal dealer doing business in this state shall maintain wherever that business is conducted a record in which shall be legibly written in the English language, at the time of each transaction, the following information (a) The signature of the person with whom the transaction is made; (b) The time and date of the transaction; (c) The name of the person or employee or the identification number of the person or employee conducting the transaction, (d) The narne, date of birth, sex, height, weight, race, and residential address and telephone number of the person with whom the transaction is made; (e) A complete description of the precious metal property pledged, bought, or consigned, including the brand name, serial number, model number or name, any initials or engraving, size, pattern, and color of stone or stones; (f) The price paid, (g) The type and identifying number of identification used by the person with whom the transaction was made, which shall consist of a valid driver's license or identification card issued by any state or two pieces of identification issued by a governmental agency, one of which shall be descriptive of the person identified, and a full copy of both sides of each piece of identification used by the person with whom the transaction was made At all times, one piece of current government issued picture identification will be required, and (h) The nature of the transaction, a number ident;'Ning the transaction, the store identification as designated by the applicahle law ,,rifoicc :meat agency, or the name and address of the business or location, including the street address, and room nurni --er if appropriate, and the rime, of the person oremployee conducting the transaction, and the location of the property ( ) The records required in subsection (1) of this section shall at all times during the ordinary hours of business, or at reasonable times if ordinary hours of business are riot kept, be open to the inspection by any commissioned law enforcement officer of the state or any of its political subdivisions, and shall be maintained wherever that business is conducted for three years following the date of the transaction. RCW 19.60.042 Re ort to chief law enforcement officer -- Preclous metal dealers. If the applicable chief of police or the county's chief law enforcement officer has compiled and published a list of persons who have been convicted of any crime involving theft, then a secondhand precious metal dealer shall utilize such a list for any transaction involving property other than property consisting of a precious metal as required by the applicable chief of police or the county's chief law enforcement officer. RCW 19.60.057 Retention of precious metal property -- Inspection. (1) Property consisting of a precious metal bought or received from an individual on consignment by any secondhand precious metal dealer with a permanent place of business in the state may not be removed from that place of business except consigned property returned to the owner, for a total of thirty days after the receipt of the property. Property shall at all times during the ordinary hours of business be open to inspection to any commissioned law enforcement officer of the state or any of its political subdivisions. (2) Property consisting of a precious metal bought or received from an individual on consignment by any secondhand precious metal dealer without a permanent place of business in the state must be stored and held within the city or county in which the property was received, except consigned property returned to the owner, for a total of thirty days after receipt of the property. The property shall be available within the appropriate jurisdiction for inspection at reasonable times by any commissioned law enforcement officer of the state or any of its political subdivisions. (3) Subsections (1) and (2) of this section do not apply when the property consisting of a precious metal was bought or received from a pawn shop, jeweler, secondhand dealer, or secondhand precious metal dealer who must provide a signed declaration showing the property is not stolen The declaration may be included as part of the transactional record required under this subsection, or on a receipt for the transaction. The declaration must state substantially the following, "I, the undersigned, affirm under penalty of law that the property that is subject to this transaction is not to the best of my knowledge stolen property." RCW 19.60.067 Secondhand precious metal dealers — Prohibited acts -- Penalty. (1) It is a gross misdemeanor for- (a) A secondhand precious metal dealer to knowingly make, cause, or allow to be made any false entry or misstatement of any material matter in any book, record, or writing required to be kept under RCW 19.60 025, 19.60.057, 19.60.042, 19.60.077, and 19.60.095 involving property consisting of precious metal; (b) A secondhand precious metal dealer to receive any precious metal property from any person known to the secondhand precious metal dealer as having been convicted of burglary, robbery, theft, or possession of or receiving stolen property within the past ten years whether the person is acting in his or her own behalf or as the agent of another; or (c) A secondhand precious metal dealer to knowingly violate any other provision relating to precious metals under RCW 19.60.025, 19.60.057, 19.60.042, 19.60.077, and 19.60.095, RCW 19.60.077 Precious metal dealers — Licensure required. No secondhand precious metal dealer doing business in this state may operate a business without first obtaining a business license front the local government in which the business is situated RCW 19.60.095 Precious metal sales ----- Hosted home parties. (1) For purposes of this section, "hosted home party" rneans a gathering of persons at a private residence where a host or hostess has invited friends or other guests into his or her residence where individual person -to- person sales of precious metals occur (2) A host or hostess must be the owner renter, or lessee of the private residence where the hosted home party takes place (3) A secondhand precious metal dealer who attends a hosted home party and purchases or sells precious metals from the invited guests must issue a receipt for each item sold or purchased at the hosted home party (4) The secondhand precious metal dealer must include on every receipt the following (a) The name, residential address, telephone number, and driver's iieense number of the person hosting the home party; (b) the name, residential address, telephone, number, and, driver's license number of the person selling the item. (c) the name, residential address, telephone number, and driver's license number of the person purchasing the item, (d) a complete description of the item being sold, including the brand name, serial number, model number or name, any initials or engraving, size, pattern and color of stone or stones, (e) time and date of the transaction; and (f) the amount and form of any consideration paid for the item (5) The secondhand prt;clous metal deafer must make four copies of each transaction receipt: One for the seller, one for the host or hostess, one for the purchaser, and one for local authorities, if they should ask. The secondhand precious metal dealer and the host shall maintain copies of all transaction receipts and records for three years following the date of the precious metal transaction (G) A secondhand precious rnetal dealer of s hosted borne party who purchases precious metals at a hosted home party and con-,plies ,,th tlris section is olher�Jse exempt from RCW 1.960,025, '19.60.057, and 19.64.042.