Title 5 - Business Licenses and Regulations

5.52.010 Definitions.

As used in this chapter the words:

5.52.020 License Required.

No person shall engage or continue in business as a Pawnbroker or Precious Metal Dealer without first obtaining a license therefor. The person shall obtain such license from the City Clerk. An application for a license shall be in writing and shall state the full name and place of residence of the applicant. If the applicant is a partnership, the application shall contain the name and place of residence of each member thereof, or if a corporation or association, of each officer, shareholder or member thereof. The application shall include the address of the places where the business is to be conducted, the hours and days of the week during which the applicant purposes to engage in the business of pawnbroking or dealing in precious metals at each such place, and such other information as may be necessary to determine the applicant's qualifications for a license in accordance with the provisions of this chapter. Each applicant shall also submit with the application:

1. A.
   A statement that the applicant is the holder of a valid registration certificate issued by the Director of Revenue pursuant to K.S.A. 79-3608 for each place of business for which an application for a license is made; and
2. B.
   A detailed inventory and description of all goods, wares, merchandise, precious metals or other property held in pledge or for sale at the time of the application at each place of business stated therein, indicating whether the same was received in pledge, purchased as secondhand merchandise, or precious metal purchased for resale.

The license application shall be in a form approved by the Attorney General. Each application shall be accompanied by a fee of $25 which shall be paid annually upon renewal of the license. All such fees received by the City Clerk shall be deposited in the City General Fund.

(History: Ord. PB-1123 §2, 82; PB-712 §2, 72)

Effective on: 1/1/1901

5.52.030 Qualifications.

No license or any renewal thereof shall be granted to:

1. A.
   Any person who is not a citizen of the United States;
2. B.
   Any person who has not been an actual resident of the state of Kansas for at least two years immediately preceding the date of his application; provided that corporate officers, directors and stockholders of an applicant corporation that have resided in Cass County, Clay County, Platte County and Jackson County, Missouri, for the two years immediately preceding the date of application, are not subject to the residence requirements of this section, provided further, each premises operated by a corporate licensee must have an in-store manager who is a resident of the state of Kansas.
3. C.
   Any person who has been convicted of or has pleaded guilty to a felony under the laws of this state, or any other state, or of the United States, or shall have forfeited his bond to appear in court to answer charges for any such offense within the ten years immediately prior to such person's application for a license;
4. D.
   Any person who has had his license revoked for cause under the provisions of this chapter;
5. E.
   Any person who is not at least twenty-one years of age;
6. F.
   Any person who at the time of application for renewal of any license issued under this chapter would not be eligible for such license upon a first application;
7. G.
   Any person who does not own the premises for which a license is sought, unless he has a written lease therefor for at least three-fourths of the period for which the license is to be issued;
8. H.
   Any person whose spouse would be ineligible to receive a license hereunder for any reason other than the age, citizenship, and residence requirements;
9. I.
   Any partnership, unless all the partners shall be eligible to receive a license as an individual; and
10. J.
    A corporation if any officer, manager, director, or stockholder would be ineligible to receive a license as an individual.

(History: Ord. PB-1737 §1,92; PB-712 §3, 72)

Effective on: 1/1/1901

5.52.040 Transfer of Ownership.

It is unlawful for any shareholder of a corporate licensee to transfer any stock in the corporation to any person who would be ineligible to receive a license as an individual, and any such transfer shall be null and void; provided, that if any such stockholder of a corporate licensee shall become deceased, and his heirs or devisees to whom such stock descends by descent and distribution or by will shall be ineligible to receive a license under this chapter, then the legal representatives of the deceased stockholder's estate, his heirs and devisees shall have fourteen months from the date of the death of the stockholder within which to sell such stock to a person eligible to receive a license under this chapter, with such sale to be made in accordance with the provisions of the probate code and any amendments thereto. If the legal representative, heirs, and devisees fail, refuse or neglect to so convey the stock within the time herein before prescribed, then the stock shall revert to and become the property of the corporation, for which the corporation shall pay the legal representatives, heirs or devisees the book value of such stock. If the stock in any corporation shall be the subject of any trust heretofore or hereafter created, the trustee or trustees and the beneficiaries of each trustee and beneficiary of said trust who is twenty-one years of age or older must be a person who would be eligible to receive a license or the trustee shall be and he is authorized and required within fourteen months after the effective date of the trust to sell the stock to a person eligible to receive a license under this chapter and he shall hold and disburse the proceeds thereof in accordance with the terms of the trust or the license of the corporation shall be forfeited.

During the fourteen month periods herein before mentioned a corporation shall not be denied a license or have its license revoked if it meets all of the other requirements necessary to have a license as provided in this chapter.

(History: Ord. PB-712 §4, 72)

Effective on: 1/1/1901

5.52.050 Contents of License.

The document or other instrument evidencing the license of a pawnbroker or precious metal dealer shall state the address at which the business is to be conducted and shall state fully the name of the licensee. If the licensee is a partnership, the license shall state the names of the members thereof; and, if a corporation, the date and place of the incorporation, and the names of all the shareholders thereof. Such license shall be kept conspicuously posted in the place of business of the licensee. It is not transferable or assignable. Not more than one place of business shall be maintained under the same license, but more than one license may be issued to the same licensee upon compliance with all the provisions of this chapter governing the issuance of an initial license.

(History: Ord. PB-1123 §3, 82; PB-712 §5, 72)

Effective on: 1/1/1901

5.52.060 Change of Business Location.

Whenever a licensee shall change his place of business to another location within the city, he shall immediately give written notice thereof to the city clerk who shall then issue a duplicate license which shall show in addition to all the information appearing on the old license a record of the change of location and the date thereof, which new license shall be authority for the operation of such business under such license at such location. The licensee shall return the old license to the city clerk as soon as the new license has been received and the change in location has taken place.

(History: Ord. PB-712 §6, 72)

Effective on: 1/1/1901

5.52.070 Records & Accounts.

Each licensee shall keep and use in the licensee's business such books, accounts, records and files as will enable the City to determine whether such licensee is complying with the provisions of this act. During the licensee's regular business hours the Chief of Police or his designated representative may examine or cause to be examined such books, accounts, records, and files used by any licensee or by any other person engaged in the business of pawnbroking or dealing in precious metals, irrespective of whether such person acts or claims to act as principal, agent or broker, or under or without authority of this chapter.

The Chief of Police or his designated representative shall have and be given free access, during the licensee's regular business hours, to all such books, accounts, records and files. Further, the Chief of Police or his designated representative shall have and be given free access to all safes and vaults on the licensee's place of business which are used to store such books, accounts, records and files.

(History: Ord. PB-1123 §4, 82; PB-712 §7, 72)

Effective on: 1/1/1901

5.52.080 Suspension or Revocation of License.

Any license issued under this chapter may be suspended or revoked after due notice and public hearing before the governing body if the licensee:

1. A.
   Has failed to pay the annual license fee;
2. B.
   Has violated any provision of this chapter; or
3. C.
   Has been convicted of or has pleaded guilty to a felony under the laws of this state, or any other state, or the United States, or shall have forfeited his bond to appear in court to answer charges for any such offense, if such conviction or plea occurred subsequent to or within the ten years immediately prior to the date of the licensee's application for the license. Any license issued under this chapter shall be revoked, after due notice and hearing thereon, if it shall be proved at the hearing that the licensee sold any handgun to a minor.

The hearing herein provided shall be held within 30 days after notice thereof and the alleged violation determined by written order of the governing body within 60 days after such hearing is concluded; but no revocation or suspension or surrender of any license shall impair or affect the obligation of any preexisting lawful contract between the licensee and any borrower.

(History: Ord. PB-712 §8, 72)

Effective on: 1/1/1901

5.52.090 Loan Procedures.

Every loan made by a pawnbroker for which goods are received in pledge of security shall be evidenced by a written contract, in ink, a copy of which shall be furnished to the borrower. The loan contract shall set forth the loan period, which shall be one month, the date on which the loan is due and payable and the charges, and it shall clearly inform the borrower of his right to redeem the pledge during the redemption period of two months after due date. Except as otherwise provided herein, the holder of any such contract shall be presumed to be the person entitled to redeem the pledge, and the pawnbroker shall deliver the pledge to the person presenting the contract, upon payment of the principal and charges.

Every pawnbroker shall retain in his possession, after the date on which the loan became due and payable every article pledged to him for a redemption period of two months. During such period, the borrower may redeem the pledged article, upon payment of the principal and charges. It is unlawful for any pawnbroker to sell or transfer title or possession of any pledged property until the expiration of such period of redemption. If any pledged Article Is not redeemed within said redemption period, the pawnbroker shall become vested with all right, title, and interest of the pledgor or his assigns to such pledged article, to hold and dispose of as his own property. Any other provision of law relating to the foreclosure and sale of pledges shall not be applicable to any pledge the title to which is transferred in accordance with this section.

(History: Ord. PB-712 §9, 72)

Effective on: 1/1/1901

5.52.100 Reporting, Holding Period.

1. A.
   On or before Tuesday of each week, every pawnbroker or precious metal dealer shall report in detail, the description of all properties received in pledge or purchased as a pawnbroker or precious metal dealer during the preceding calendar week and whatever quantity received. Such report shall include all property purchased as secondhand merchandise at wholesale, secondhand merchandise taken in for sale or possessed on consignment for sale and secondhand merchandise taken in trade. No such report need be made concerning property or merchandise acquired from another pawnbroker or precious metal dealer licensed in this state in a transaction involving the purchase or other acquisition from the other pawnbroker or precious metal dealer of the other pawnbroker's or dealer's stock in trade, or a substantial part thereof in bulk, where the other pawnbroker or dealer has made the reports required by this section with respect to such property or merchandise. Such report shall be submitted to the Chief of Police.
2. B.
   All reports required to be submitted pursuant to this section shall contain the following information:

   1. 1.
      Date of the purchase;
   2. 2.
      Name, date of birth, residence, and driver's license number of the seller;
   3. 3.
      A clearly legible, detailed and accurate description of each item purchased. Such description shall include but not be limited to the following information:

      1. a.
         Type of precious metal purchased;
      2. b.
         Weight of the metal, in either pennyweight, grams or ounces,
      3. c.
         A description of any precious stones contained within the item purchased including type of stone, carat size and color,
      4. d.
         Any identifying letters, numbers, marks or writing on the item,
      5. e.
         Size of any ring purchased,
      6. f.
         Any brand names or pattern names.
3. C.
   Every precious metal dealer shall retain in the dealer's possession for a period of 10 days all precious metal purchased as a precious metal dealer, and such metal shall remain in the condition in which it was purchased. The 10-day period shall commence on the date the Chief of Police receives the report of its acquisition in compliance with this section. If the Chief of Police has probable cause to believe that any precious metal reported by a dealer has been stolen, the Chief of Police may give written notice to the dealer to retain such metal for an additional period of 15 days. Upon such notice the dealer shall retain such metal in an unaltered condition for the additional 15-day period unless the Chief of Police notifies the dealer in writing that the waiting period is terminated at an earlier time.
4. D.
   Reports made pursuant to this section shall be available for inspection only by law enforcement officers, district and city attorneys and their employees for law enforcement purposes.

(History: Ord. PB-1123 §5, 82; PB-712 §10, 72)

Effective on: 1/1/1901

5.52.110 Record Book.

1. A.
   At the time of making a loan, a pawnbroker shall enter in a book kept for that purpose:

   1. 1.
      The date, duration, amount and charges of every loan made by the pawnbroker;
   2. 2.
      A full and accurate description of the property pledged; and
   3. 3.
      The name, date of birth, residence and driver's license or other personal identification number of the pledgor.
2. B.
   At the time of purchasing precious metal, a precious metal dealer shall enter in a book kept for that purpose:

   1. 1.
      The date of the purchase,
   2. 2.
      A fully detailed and accurate description of each item purchased, including any identifying letters, numbers, or marks on the item; and
   3. 3.
      The name, date of birth, residence and driver's license number of the seller.
3. C.
   The record required by this section shall be maintained in a clearly legible manner by the pawnbroker or precious metal dealer at the pawnbroker's or dealer's place of business for not less than one year following the date of the transaction.

(History: Ord. PB-1123 §6, 82; PB-712 §11, 72)

Effective on: 1/1/1901

5.52.120 Minors Prohibited.

No pawnbroker shall receive in pledge or as security for any loan, transfer, service, undertaking or advantage, anything of value from any person under the age of 18 years.

No precious metal dealer shall purchase any precious metal from any person under the age of 18 years.

(History: Ord. PB-1123 §7, 82; PB-712 §12, 72)

Effective on: 1/1/1901

5.52.140 Charges.

1. A.
   On the effective date of ordinance codified in this chapter no pawnbroker shall contract for, charge, or receive directly or indirectly on or in connection with any pawnbroker transaction any charges, whether for interest, storage, insurance, service fee, handling, compensation, consideration or expense which in the aggregate are greater than the charges provided and authorized by this chapter. Any other provisions of law relating to interest, storage, and such charges shall not be applicable to any pawnbroker transaction made in accordance with this chapter.
2. B.
   Whenever any loan is made by a pawnbroker for which goods are received in pledge, the following maximum amounts may be charged:

   1. 1.
      On any amount a charge may be added in an amount not to exceed 10% per month or 120% per year of the amount advanced to the borrower; and
   2. 2.
      The maximum amount of a loan authorized by this chapter shall not exceed $5000 per transaction.
3. C.
   The term of any loan made under the provisions of this chapter shall be one month. Loans may be extended or renewed by the payment of charges herein provided monthly. The charges authorized herein shall be deemed to be earned at the time the loan is made and not be subject to refund. On loans under this chapter, no insurance charges or any other charges of any nature whatsoever shall be permitted.

(History: Ord. PB-1913 §1,95; PB-712 §14, 72)

Effective on: 1/1/1901

5.52.145 Proof of Identification; Ownership.

A precious metal dealer shall require of every person from whom the dealer purchases metal for resale:

1. 1.
   Proof of identification; and
2. 2.
   A signed statement saying that the seller is the legal owner of the precious metal or is an agent of the legal owner who is authorized to sell such metal, stating when, where and in what manner such metal was acquired by the seller.

(History: Ord. PB-1123 §8, 82)

Effective on: 1/1/1901

5.52.150 Violation - Penalty.

Any person convicted of a violation of any of the provisions of or failing to comply with any of the mandatory requirements of the ordinances of the City for which another penalty is not specifically provided is guilty of a public offense and is punishable as provided in 1.12.010.

(History: Ord. PB-712 §15, 72)

Effective on: 1/1/1901

5.52.155 Separability.

Should any court declare any section, clause or provision of this chapter to be unconstitutional or invalid, such decision shall affect only such section, clause or provision so declared unconstitutional or invalid and shall not affect any other section, clause or provision.

(History: Ord. PB-1123 §9, 82)

Effective on: 1/1/1901