HomeMy WebLinkAboutAmending Chapter 4 - to revise provisions for the licensing of precious metals dealers and secondhand storesORDINANCE No. s~a~ ss
Passed by the Common Council of the City of South Bend, Indiana
April 28, 19 99
Attest:
Attest:
City Clerk
President of Common Council
Presented by me to the Mayor of the City of South Bend, Indiana
April 30, 19 99
City Clerk
Approved and signed by me Ap r i 1 3 0 19 9 9
Mayor
~C?~w~
ORDINANCE NO . ~ QQ 2 _ ~ `
AN ORDINANCE OF THE COMMON COUNCIL OF THE
CITY OF SOUTH BEND, INDIANA, AMENDING CHAPTER 4
OF THE SOUTH BEND MUNICIPAL CODE TO REVISE PROVISIONS
FOR THE LICENSING OF
PRECIOUS METALS DEALERS AND SECONDHAND STORES
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STATEMENT OF PURPOSE AND INTENT
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The purpose of this ordinance is to amend Chapter 4 of the
South Bend Municipal Code to revise provisions for the licensing
of metals dealers and secondhand stores.
The Common Council of the City of South Bend determines that
such businesses serve an important purpose within the community,
and that careful regulation businesses is necessary to ensure the
quality of such businesses and to protect public safety and
general welfare.
NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE
CITY OF SOUTH BEND, INDIANA AS FOLLOWS:
SECTION I. Chapter 4, Article 4, Section 4-44, of the South
Bend Municipal Code shall be, and hereby is, amended to read as
follows:
Sec. 4-44. Precious metals dealers.
(a) Definitions.
(1) Dealer means any person who holds himself out to the
public as a purchaser of precious metals, or who in doing
business engages in purchasing, trading, or offering by
consignment silver, gold or precious metals.
(2) Precious metals means any article made in whole or in
part of gold, silver or platinum, but not including any coin, any
gold or silver ingot or any gold or silver bar.
(3) Wholesale precious metals means articles made in whole
or in part of silver, gold or platinum that have not been
previously used, traded or sold by a retailer and that are being
purchased by a dealer from a manufacturer or from a wholesaler or
distributor of newly manufactured precious metals.
(b) License and place of operation:
(1) No dealer shall operate in the City except from a
permanent shop or place of business.' No dealer shall operate
upon public property or from a vehicle, flea market, hotel room,
or similar location.
(2) No dealer shall operate in the City who does not
possess a valid precious metals dealer license.
(3) The application for a precious metals dealer license
shall be made to the Office of the Controller, and shall set
forth:
(a) The name under which the business is to be
conducted;
(b) The name, address and telephone number of the
applicant;
(c) The location(s) where the applicant intends to do
business; and
(d) The type of goods, wares or merchandise the
applicant intends to sell.
(4) The application shall then be referred to the Police
Department for review and recommendation. The Police Department
shall conduct an investigation of each applicant and make a
recommendation to the Controller as to whether the application
should be granted. In making its recommendation, the Police
Department shall consider the criminal history of the applicant,
if any, and the likelihood that granting the application will
endanger the health, safety or welfare of the public. A report
of the investigation and a copy of the traffic and police record
of the applicant, if any, and the recommendation of the Police
Department, shall be attached to the application for the
consideration of the Controller.
(5) The Controller shall consider the recommendation of the
Police Department, and all information provided with or in
support of the application in determining whether the application
should be granted.
(6) The applicant for a precious metals dealer license
shall pay an annual fee of two hundred ($200.00) to the
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Controller, upon issuance of the license.
(c) Report to police and records required; contents.
(1) Every dealer shall maintain and provide
to the Police Department a precious metal report
within twenty-four
(24) hours from time of purchase of any precious metal items.
The reporter must contain the seller's name, address, social
security number, the price paid for each item, the purchase date
and time, a description of each article purchased, including
identifying marks and the manufacturer (where known), and the
seller's driver's license number or the number of any other
identification issued by a governmental authority bearing the
seller's photograph, and the account number from one additional
piece of recognized identification. The form shall also bear a
clear, inked impression of the seller's right thumb print and the
same transaction number as recorded in the dealer's record book
as required by paragraph (2) below.
(2) The dealer shall also record the seller's physical
description and a description of the property purchased, as
required in this section,
and shall
retain the ~}c import and information for three years from the
date of the last purchase recorded therein.
(~~) Any records required to be kept or maintained under
this section shall be available at all times for inspection by
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the Police Chief or person duly authorized by him to inspect the
records.
(fro) The Police Department shall not reveal the identity of
a seller supplied under this section, except to
other law enforcement agencies and prosecuting officials or
pursuant to a valid court order, or in the course of any criminal
investigation.
(d) Precious metal purchases from minors prohibited. No dealer
shall purchase precious metals from a person under eighteen (18)
years of age.
(e) Precious metals to be held for _fou_rtee_n_ da~~ Qr thirty days
before resale. All precious metals purchased by a dealer must be
held for thirty (30) days within the City in the dealer's
possession, before being resold, exchanged, melted or altered in
any manner. However, ;f the dealer maintains the _report and
infnrmatinn rPqu;rP~ by ~b ion (~) in a computer program
~oT11pa ; bl ~~~i th a program maintained by h ~o ~ h B nd pol ;
t~partment,~ or ;n a program pre-aapproved by the South Bend Police
~pecif~r the amount of time the precious m l m~ t b h ld. If
the items purchased are held or stored at a location other than
the dealer's premises licensed under this section, the location
of these goods and the holder's identification must be filed with
the Police Chief within twenty-four (24) hours from the time of
purchase. All goods required to be held under this section shall
be available at all times for inspection by the Police Chief or a
person duly authorized by the Police Chief to inspect the goods.
(f) Coin purchase. Any purchase of coins made up in part of
gold or silver where the total purchase exceeds fifty dollars
($50.00) shall comply with subsection (c)(2)}.
(g) Exemptions. The provisions of this section shall not apply
to wholesale precious metal purchases or to transactions between
dealers of precious metals where the selling dealer has already
complied with the terms of this section, including subsection
(e) .
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(h) Penalty. Any violation of the provisions of this section
shall be deemed an offense and, upon conviction, the offender
shall be fined not less than two hundred dollars ($200.00) nor
more than two thousand five hundred dollars ($2,500.00). Each
violation shall constitute a separate offense and be punishable
as such.
SECTION II. Chapter 4, Article 4, Section 4-53, of the
South Bend Municipal Code shall be, and hereby is, amended to
read as follows:
Sec. 4-53. Secondhand stores.
(a) Definition. Any person who keeps or maintains a business
for the purchase or sale of secondhand clothing, secondhand
furniture or secondhand goods, wares or merchandise of any kind,
shall be considered as operating a secondhand store. However,
this definition does not include businesses exclusively engaged
in the sale of used automobiles.
(b) License required. No person shall engage in the business of
a secondhand store without first obtaining a license as required
by this section.
(c) Application. Any person desiring to operate a secondhand
store shall file an application stating the following with the
City Controller.
(1) Name, address and telephone number of the applicant.
(2) Name, address and telephone number of the secondhand
store.
(3) Types of materials to be sold.
The application shall be referred to the Police Department
for review and recommendation and to the City Controller.
The Police Department shall conduct an investigation of each
applicant and make a recommendation to the Controller as to
whether the application should be granted. In making its
recommendation, the Police Department shall consider the criminal
history of the applicant, if any, and the likelihood that
granting the application will endanger the health, safety or
welfare of the public. A report of the investigation and a copy
of the traffic and police record of the applicant, if any, and
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the recommendation of the Police Department, shall be attached to
the application for the consideration of the Controller.
The Controller shall consider the recommendation of the
Police Department, and all information provided with or in
support of the application in determining whether the application
should be granted.
(d) License fee. The applicant for a secondhand store license
shall pay an annual fee of one hundred dollars ($100.00) to the
Controller, upon approval of the Board and Police Department and
issuance of the license.
(e) Records required; contents. Each secondhand store dealer
shall ~p maintain at the place of business a bound book with
consecutively numbered pages, in which __ ____ the dealer shall
enter or cause to be entered, in writing using permanent ink, the
following information:
(1) A description of each secondhand item bought or
received by iron the dealer.
(2) The date and time when it was received.
(3) Any prominent or descriptive marks that may be on such
property.
(4) The name, date of birth, address and social security
number of the person from whom it was purchased or received.
(f) Inspection of books and property. Every secondhand store
dealer shall, during the hours of ordinary business, allow any
member of the South Bend Police Department to inspect the
licensed premises and the contents thereof and shall, upon
request, exhibit for inspection the books or information required
to be kept under ~~ subsection (e). In addition, every
secondhand dealer shall present s~-tci ~h books or information to
the Police € Dinar m n for inspection and copying .~~'__ :-__'_
upon request.
(g) Items to be held for foL_rteen 1~4)~ys or thirty (30) days
prior to resale. All items purchased or received by the
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secondhand store dealer, with the exception of clothing, shall be
held for fourteen __(14) days or thirty (30) days prior to resale
or other disposal by the dealer. However, if he d a r
mair,t-a;nom the information required by subsection (~) in a
~o~p ~ r program comx~atible with a program maintained by the
4nii1-h RA„~ pol ; ce Department or pre-a~2proved by h South Bend
pnl;~-P D nartment~ and sends repor s of each day' ansactions
a~~quired by subsection (e) after the close of each business
dam, the dealer shall only be required to hold the items for
four n (14) d3~r~prior to resale or di spo a 'T'h ~ n
issued under this section shall s~P~-lfy h moan of im h
items are o b h ld.
(h) Purchase from minors prohibited. No secondhand store dealer
shall receive or purchase any property whatever from a person
under the age of eighteen (18) years.
(I) Exemptions. Any not-for-profit or charitable organization
doing business as a not-for-profit corporation under the laws of
Indiana shall be exempt from the licensing provisions of this
chapter. This section shall not apply to businesses which sell
used merchandise on a consignment basis exclusively.
(j) Display out of doors prohibited. No person required to
obtain a license under this section shall cause or permit
clothing, furniture, goods, wares or merchandise of any kind,
Px~pnt for boats, trailers or vehicles, to be displayed for sale
out of doors or outside the building at the premises where such
items are sold, unless that person first obtains a permit for
outdoor d;Gnlay and mays an outdoor permit fee of fifty dollars
(~~n nnl o i ~r of South Bend The fol_1_owi ng_ reg ~i r m nts
,,,,,mot 1-,P met to obtain and retai n an outdoor di spl_a~r Hermit
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(k) Penalty. Any person who violates a provision of this
section shall be fined not less than two hundred dollars
($200.00) or more than two thousand five hundred dollars
($2,500.00). Each violation shall constitute a separate offense
and be punishable as such.
SECTION III: Chapter 4, Article 4, Section 4-64 of the
South Bend Municipal Code shall be, and hereby is, amended to
read as follows:
Section 4-64. Chart of licensing fees.
Regulated Activity Code Section Fee
SECTION IV: The fifty dollar ($50.00) fee addressed in ~ 4-
53 and ~ 4-64 shall be reviewed in December of 1999 by the Common
Council regarding its reasonableness to services provided by the
City Administration.
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~ TTON V: This ordinance shall be in full force and effect
from and after its passage by the Common Council, approval by the
Mayor, and publication as required by law.
1st READItr'G ~-12-~~
PUBLIC HEARING ~-I-1-~-'~g
3rd READING ~{-Z(~.qe,
NOT APPROVED
REFERRED
~~¢.-d
Member of the Common Council
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PASSED ~.t$-9~ q s 0.a++~~-~l
COMMITTEE REPORT
TO THE COMMON COUNCIL OF THE CITY OF SOUTH BEND:
Your Committee of the Whole, to whom was referred:
33-99 PUBLIC HEARING OF A BILL OF THE COMMON COUNCIL OF THE
CITY OF SOUTH BEND, INDIANA, AMENDING CHAPTER 4 OF THE
SOUTH BEND MUNICIPAL CODE TO REVISE PROVISIONS FOR THE
LICENSING OF PRECIOUS METALS DEALERS AND SECONDHAND
STORES
Respectfully report that they have examined the matter and that in their opinion, this bill
is being recommended to the full Council with a favorable recommendation, amended as
follows:
Re-number Section IV to V.
New Section IV:
Section IV The fifty dollar ($50.00) fee addressed in § 4-53
and § 4-64 shall be reviewed in December of 1999 by the
Common Council regarding its reasonableness to services
provided by the City Administration.
Charlotte Pfeifer
Chairman
1400 COUNTY-CITY BUILDING
SOUTH BEND, INDIANA 46601-1830
CITY OF SOUTH BEND STEPHEN,J. LUECKE~ MAYOR
DEPARTMENT OF LAW
,JOHN E. BRODEN
CITY ATTORNEY
April 5, 1999
Mr. Sean Coleman
President, South Bend Common Council
Fourth Floor, County-City Building
South Bend, Indiana 46601
RE: A Proposed Ordinance of the Common Council Amending Chapter 4 of the
Municipal Code to Revise Provisions for Licensing Precious Metals Dealers and
Second Hand Stores
Dear Mr. Coleman:
As counsel for the Department of Code Enforcement and the Neighborhood Task Force, I
am enclosing a proposed ordinance to revise the licensing provisions for precious metals dealers
and second hand stores.
PHONE 219/235-9241
Fax 219/235-9892
TDD 219/235-5567
ALADEAN M. DEROSE
CHIEF ASSISTANT CITY ATTORNEY
The proposed ordinance is meant to allow for outdoor display of items at second hand
stores, while preserving neighborhood integrity. It is also to allow for a shortened holding
period by both types of businesses if they use a computer program compatible with the program
used by the South Bend Police Department to monitor items received by the businesses. Finally,
the bill is intended to allow for the sale of items by precious metals dealers without requiring
that the purchasers be photographed and identified.
THOMAS L. BODNAR
BRIAN W. STEINKE
MICHELLE L. ENGEL
,JEFFREY M. JANKOWSKI
ROBERT C. ROSENFELD
ANN-CAROL NASH
This bill is the product of numerous meetings with owners of both types of businesses,
representatives of the Police Department, Legal Department and Department of Code
Enforcement, and some Common Council members.
I respectfully request your favorable consideration of this proposed ordinance.
If you have any questions in this regard, please do not hesitate to contact me.
Sincerely,
/i~~
Ann-Carol Nash
Assistant City Attorney
cc: John E. Broden
Loretta Duda
Kathleen Cekanski-Fenand
Kathleen J. Dempsey
Lt. Robert Hammer
Jeremy Barclay
Enclosure
licenselsecond~amend99.ltr