ITEM: 12.5 ADMINISTRATION - Police Chief Chris Olson
SECOND READING
Title
AMENDING CHAPTER 22, ARTICLE II, PAWNBROKERS, OF THE MUNICIPAL CODE OF THE CITY OF BLAINE
Background
This item was inadvertently not placed onto the February 2nd, 2012 City Council Meeting agenda for its Second Reading. Since the fees were already adjusted through the Fee Schedule, and the other changes are already being adhered to due to changes in State Statute, there have been no adverse consequences due to this delay.
In November of 2011, at a City Council Workshop session, the Council was presented information on Pawn Shop fees and the Pawn Shop Ordinance. As a result of the presentation, the fees for the Pawn License was set in the Fee Schedule to the following:
n Decrease annual license fee to $3,000.00/year and keep transaction fees the same
n $2/transaction
n $4/non-compliant transaction
n After the third license year, and subsequent years thereafter, reduce the annual license fee to $2,000.00/year
n keep transactions fees the same
n $2/transaction
n $4/non-compliant transaction
n The pawn license holder must not have more than a 3% error rate over the course of the previous year. Error rates over 3% will return the license fee to $3,000.00 for the next year.
Additionally, as part of the 2011 legislative session, changes were made to the Minnesota State Statute governing pawn operations in the State (holding and redemption periods). The holding period of purchased items, prior to sale, has changed from 30 days to 31 days; the seller of property now has the ability to recover that property immediately, rather than waiting 3 days; and, the seller is able to redeem pawned property at 60 days rather than 90 days. These changes will put the City of Blaine's Pawn Ordinance in accord with Minnesota State Statute.
Schedule of Actions
City Council (1st Reading) 01/19/2012
City Council (2nd Reading) 07/12/2012
Body
THE CITY OF BLAINE DOES ORDAIN: (Added portions are underscored and deleted portions are shown in brackets with overstrike.)
ARTICLE V. PAWNBROKERS
DIVISION 1. GENERALLY
Sec. 22-207. - Holding of property.
(b) No personal property deposited with or purchased by any licensee under this article shall be sold from the place of business of the licensee until [30] 31days after the copy of the records required by section 22-207 have been made available to the police chief, except upon written permission of the police chief or his/her designee.
[(c) No personal property deposited with or purchased by any licensee under this article shall be permitted to be redeemed from the place of business of licensee until three working days after the copy of the records required by section 22-207 have been made available to the police chief or his/her designee, except upon written permission of the police chief or his/her designee. ]
(d) (c) In addition to the other requirements of this section, a pawnbroker who holds a title to a motor vehicle as part of a pawn transaction shall:
(1) Be licensed as a used motor vehicle dealer under Minn. Stat. ยง 168.27, and post such license on the pawnshop premises;
(2) Verify that there are no liens or encumbrances against the motor vehicle with the department of public safety; and
(3) Verify that the pledgor has automobile insurance on the motor vehicle as required by law.
A pawnbroker may not sell a motor vehicle covered by a pawn transaction in a timeframe other than as specified by subsection (b) of this section.
(e) (d) Any new license granted by the city to a licensee not licensed by the city by October 17, 1996, will require all property be stored at the permanent place of business. There will be no off-site storage allowed.
Sec. 22-209. - Redemption period.
Any person who pawns an item shall have at least [90] 60 days to redeem the item before it may be sold.
INTRODUCED and read in full the 19th day of January 2012
PASSED by the City Council of the City of Blaine this 12th day of July, 2012
Recommendation
By Motion, approve the ordinance.