O 427 C.S.
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ORDINANCE NO. 427 e.s.
AN ORDINANCE OF THE CITY COUNCIL
OF THE CITY OF ARROYO GRANDE AMENDING
THE MUNICIPAL CODE TITLE 5. CHAPTER 8
REGARDING SECONDHAND AND JUNK DEALERS
THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE HEREBY ORDAINS AS
FOLLOWS:
SECTION 1: Chapter 8. Title 5 of the Arroyo Grande Municipal
Code is amended to read in its entirety as follows:
SECONDHAND AND JUNK DEALERS
5-8.0l. PurDose and intent. I
Sec. I
It is the intent of this Chapter to provide controls which
will decrease the potential for traffic in and sale of stolen
goods. This chapter shall not supersede or supplant the
California Business and Professions Code or any other applicable i
state law. but is to be enforced therewith. i
Sec. 5-8.02. Definitions.
For the purposes of this Chapter. the following definitions
shall apply:
(a) A secondhand vendor includes any person or entity whose
business. or any part of such. is buying. selling. trading.
taking in pawn. or accepting for sale on consignment. any
secondhand tangible personal property. Persons who are
financially interested in the business of the secondhand vendor I
include any person who has an investment interest, whether as an
individual or as a partner or stockholder, worth at least
$250.00. in said business. or any person who takes part in the
management, operation or control of the business. The term
"persons financially interested" does not include landlords or
owners of the premises upon which the business is operated unless
they are otherwise financially interested.
(b) For purposes of this Chapter. secondhand vendor does
not include any person or other entity who participates in any
annual or semi-annual fair sponsored by a non-profit corporation
or association and approved by the City Council, unless such
person or entity is otherwise a secondhand vendor, nor does it i
include one or more persons participating in a "garage" or "yard" I
sale where such person or persons offers personal property for
sale less than six (6) times in any twelve (12) month period.
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(c) Tangible personal property for the purpose of this
chapter incudes, but is not limited to:
(1) All tangible personal property. new or used. which
is purchased by a secondhand dealer. and bears a serial number or
personalized initials or inscription or which, at the time it is
acquired by the secondhand dealer. bears evidence of having had a
serial number or personalized initials or inscription; all
jewelry. precious and semi-precious stones. and semi-precious
metals. which are purchased by a secondhand dealer.
(2) All secondhand tangible personal property received
in pledge as security for a loan by a pawnbroker or a secondhand
dealer acting as a pawnbroker.
(3) All personal property commonly sold by secondhand
dealers which statistically is found through crime reports to the
Attorney General to constitute a significant class of stolen
goods. a list of such personal property having been supplied by
the Attorney General to all local law enforcement agencies.
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(4) As used in this chapter, "tangible personal
property" does not include any new goods or merchandise purchased
from a bona fide manufacturer or distributor or wholesaler of
such goods or merchandise by a secondhand dealer. For purposes
of this article, however, a secondhand dealer shall retain for
one year from the date of purchase, and shall make available for
inspection by any law enforcement officer, any receipt, invoice.
bill of sale or other evidence of purchase of such new goods or
merchandise.
Sec. 5-8.03. Exceptions.
For purposes of this chapter, the following property is
excluded from the definition of secondhand tangible personal ~
property:
(a) Washing machines, clothes dryers, freezers,
refrigerators, ranges, stoves, full sized pianos and organs.
(b) Secondhand motor vehicles, the transfer of ownership of
which is required to be made a matter of record with the
California Department of Motor Vehicles pursuant to the Vehicle
Code.
(c) Receipts or sale of secondhand article by any person
that received such secondhand article as part payment of a new
article, if such person is the authorized representative or agent
of the manufacturer of, or regularly deals in the new article
sold.
(d) Any person acting as a vendor for the exclusive benefit
or any community chest fund, foundations, or corporation
organized and operated for religious, hospital or charitable
purposes and not conducted for a profit, where no part of the
gross receipts or net earnings inure to the benefit of any
private shareholder or person participating in the organization
or conduct of the sale or exchange.
(e) A dealer who has acquired secondhand property from
another person who, under applicable state and/or local laws,
shall have previously reported such antiques or secondhand
property to the appropriate police agency.
(f) Secondhand property acquired pursuant to the
provisions of Business and Professions Code Section 21629.
Sec. 5-8.04. License required.
It shall be unlawful for any person to engage in the
business of a secondhand vendor in the City unless such person
has been issued a license as provided in this Chapter. The fee
for said license, as established by resolution of the City
Council, will be required for processing the initial application ~
and fingerprints. I
Sec. 5-8.05. Application.
An applicant shall submit his application for a license to
the Chief of Police, which application shall be under oath and
shall include the true names and addresses of all financially
interested in the business. In addition, the past criminal
record, if any, of all persons financially interested in the
business shall be shown on such application if such record shows
that any such person has been convicted of an attempt to receive
stolen property of any other offense involving stolen property.
The applicant and the persons financially interested are required
to be fingerprinted and to pay the cost for such
fingerprinting.
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Sec. 5-8.06. Investiqation and issuance of license.
The Chief of Police shall make such investigation as is
necessary to determine the background of the applicant and other
persons financially interested. The Chief of Police shall issue
the license unless he finds the applicant or any person
financially interested has been convicted of an attempt to
receive stolen property or any other offense involving stolen
property.
Sec. 5-a.07. License suspension or revocation.
(a) The Chief of Police may suspend the license for thirty
(30) days or less, or revoke the license of any secondhand vendor
if he finds that the applicant licensee or any employee, agent or
representative thereof has knowingly made false, misleading, or
fraudulent statements of a material fact in the application for a i
license, or in any record or report required to be filed under
this Chapter, or has violated any provision of this Chapter where
said violation demonstrates a pattern of fraudulent, misleading
or dishonest conduct.
(b) No suspension or revocation shall be effective until
the Chief of Police gives ten (10) days written notice of the
basis for the suspension or revocation, and provides the licensee
with a reasonable opportunity to be heard on the suspension or
revocation. All suspensions or revocations can be appealed to
the City Council within thirty (30) days of the effective date.
Sec. 5-a.Oa. Terms of license renewal.
The license issued pursuant to this Chapter shall be valid
for one (1) year from the date of issuance. A license may be
renewed annually if, on or before the 30th day prior to the
expiration date of the currently valid license, the licensee
applies for renewal of the license. The renewal application
shall include any changes in the information contained in the
original license application. The Chief of Police shall grant or
deny the renewal on the same basis as an original application.
Sec. 5-8.09. Records of vendor.
At the end of each day, every vendor shall file with the
Chief of Police, either by personal delivery or by depositing the
same in the United States Post Office mail, first-class postage
prepaid, addressed to the Chief of police, Arroyo Grande Police
Department, 200 N. Halcyon Road, Arroyo Grande, California,
93420, properly completed "Buy-Form" records for secondhand
property received during the day by the vendor. Such "Buy-Form"
records shall be on forms furnished by the Arroyo Grande Police
Department, which have been approved by the Department of Justice
, ******* The "Buy-Form" records shall be written, printed or typed
in a legible manner. The "Buy-Form" shall contain the following
information:
(a) The name and current address of the intended seller or
pledgor of the property.
(b) The identification of the intended seller or pledgor.
The identification of the seller or pledgor of the property shall
be verified by the person taking the information. The
verification shall be valid if the person taking the information
reasonably relies on anyone of the following documents, provided
the document is currently valid or has been issued within five
years and contains a photograph or description, or both, of the
person named on it, is signed by the person, and bears a serial
or other identifying number:
(l) A passport of the United States.
(2) A driver's license issued by any state, or Canada.
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(3) An identification card issued by any state.
(4) An identification card issued by the United
states.
(c) A complete and reasonably accurate description of
serialized property, including, but not limited to, the
following: serial number and other identifying marks or symbols,
owner-applied numbers, manufacturer's named brand, and model name
or number.
(d) A complete and reasonably accurate description of non-
serialized property, including, but not limited to, the
following: size, color, .material, manufacturer's pattern name 1
(when known), owner applied numbers and personalized inscriptions ,
and other identifying marks or symbols.
(e) A certification by the intended seller or pledgor that
he or she is the owner of the property or has the authority of
the owner to sell or pledge the property.
(f) A certification by the intended seller or pledgor that
to his or her knowledge and belief the information is true and
complete.
(g) A legible fingerprint taken from the intended seller or
pledgor, as prescribed by the Department of Justice.
When a secondhand dealer complies with all of the provisions
of this section, he or she shall be deemed to have received from
the seller or pledgor adequate evidence of authority to sell or
pledge the property for all purposes included in this chapter.
Sec. 5-8.10. Records of Chief of Police.
The Chief of Police shall maintain a file of all records
received pursuant to the terms of this Chapter for a period of
(1) year, and such records shall be open to inspection by any
peace officer of this state.
Sec. 5-8 .11. Except as otherwise provided herein:
(a) Prior to any sale or disposal of tangible personal
property, every vendor shall retain said tangible personal
property in his possession for a period of 30 days (hereinafter
referred to as "holding period") after acquisition by him.
(b) The 30-day holding period shall commence with the date
that the "Buy-Form" report so its acquisition is filed with the
Chief of Police by the vendor. Under such conditions as may be
required, the Chief of Police or his agent may for good cause
authorize prior disposition of any such property in lieu of l
holding the property for the prescribed 30 days.
(c) This section shall not apply to secondhand property I
which a vendor has acquired from another person who. under
applicable state and/or local laws, shall have previously held
such secondhand property for the period prescribed by such laws.
The vendor acquiring such property shall, upon demand by the
Chief of Police or his agents, present satisfactory records that
such secondhand property shall have been held for such required
period.
Sec. 5-8.12. Goods not to be altered.
A secondhand vendor shall not allow any secondhand property
consigned to or purchased by him to be altered, repaired,
painted, or otherwise changed in appearance until such ******
secondhand property has been held for the time required by this
Chapter, or unless released by the Chief of Police or his agents.
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Sec. 5-8.13. Goods released bv the Chief of Police.
The Chief of Police or his agent may release any property
required to be held by this Chapter if. after inspection. it is
determined that such property is in the lawful possession of the
secondhand vendor.
Sec. 5-8.14. Hold order by Chief of Police.
The secondhand vendor shall make the reported property
availabl e for inspection by the police department. If there is
reasonable basis to believe the property is stolen. the Chief of
Police or his agents may place a hold order for a period of
~ forty-five (45) days upon the property.
The secondhand vendor shall be provided with written notice
of the item to be held. This notice shall include a description
of the property. the police department case number and the name
of the case officer. I
Sec. 5-8.15. Violation - Misdemeanor.
Any person violating the provisions of this Chapter shall be
deemed guilty of a misdemeanor: and upon conviction shall be
fined in an amount not to exceed that amount set out as
punishment for a misdemeanor in the California Penal Code. or by
imprisonment for a period of not more than six (6) months in the
County Jail. or by both such fine and imprisonment.
SECTION 2. A summary of this ordinance shall be published
in a newspaper and circulated in said City at least five (5) days
prior to the City Council meeting at which the proposed ordinance
is to be adopted. A certified copy of the full text of the
proposed ordinance shall be posted in the office of the City
Clerk. Within fifteen (15) days after adoption of the ordinance.
the summary with the names of those city Council members voting
for and against the ordinance shall be published again. and the
City Clerk shall post a certified copy of the full text of such
adopted ordinance.
On motion of Council Member Dougall .
seconded by Council Member Mx>ts . and on the
following roll call vote. to wit:
AYES; Council M3nbers Dougall. Mx>ts, Olsen, Smith and Mayor Millis
NOES: None ,
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ABSENT: None
tha f.ra..in9 Ordinan.a wa. pa.aad and ad.P~hia::4th day.f
July . 1990. .~ 4 .I,~
MAYOR
ATTEST: '71={(. Q,,~
CITYi CLERK
APPROVED AS TO FORM:
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