CHAPTER 5. BUSINESS REGULATIONSCHAPTER 5. BUSINESS REGULATIONS\Article 2. Pawnbrokers and Precious Metal Dealers

As used in this article:

(a)   Pawnbroker means any person who loans money on deposit or pledge of personal property or other valuable thing, other than intangible personal property, or who deals in the purchase of personal property on the condition of selling the same back again at a stipulated price.

(b)   Person means any individual, firm, company, partnership, corporation or association.

(c)   Precious metal means gold, silver or platinum group metals or any used articles or other used personal property containing such metals, but shall not include coins purchased for their numismatic value rather than their metal content or ingots or other industrial residue or by-products composed of such metals purchased from manufacturing firms.

(d)   Precious metal dealer means any person who engages in the business of purchasing precious metal for the purpose of reselling such metal in any form.

(Ord. 880)

(a)   Except as provided in subsection (e), no person shall conduct business as a pawnbroker or precious metal dealer within the City of Medicine Lodge, Kansas, without first obtaining a license therefor from the City Clerk.

(b)   Licenses issued hereunder shall consist of the following:

(1)   A pawnbroker license, which shall permit the holder thereof to conduct business as a pawnbroker hereunder, but not as a precious metal dealer;

(2)   A precious metal dealer license, which shall permit the holder thereof to conduct business as a precious metal dealer hereunder, but not as a pawnbroker; or

(3)   A pawnbroker and precious metal dealer license, which shall permit the holder thereof of conduct business as both a pawnbroker and as a precious metal dealer.

(b)   Application for a license or for the renewal thereof shall be made in writing on a form provided for that purpose by the City Clerk, which shall include:

(1)   The full name and place of residence of the applicant;

(2)   If the applicant is a partnership, the name and place of residence of each member thereof;

(3)   If the applicant is a corporation or association, the name and place of residence of each officer, shareholder or member thereof, provided however that the shareholder information shall not be required as to stock which is publicly traded;

(4)   The address of each place in the City where the business is to be conducted;

(5)   The hours and days of the week during which the applicant proposes to engage in the business of pawnbroking or dealing in previous metals at each such place; and

(6)   Such other information as may be required by the City Clerk to determine the applicant’s qualifications for licensure pursuant to this article.

(c)   An applicant shall also submit with such application the following:

(1)   An applicant for any of the licenses designated above shall submit a statement that the applicant is the holder of a valid registration certificate issued by the Kansas Director of Revenue pursuant to K.S.A. 79-3608 for each place of business for which application is made, along with disclosure of the applicant’s assigned sales tax registration number;

(2)   An applicant for a license permitting the conduct of pawnbroking activities shall submit a detailed inventory and description of all goods, wares, merchandise or other property held in pledge or for sale at the time of the application at each place of business identified in the application, indicating whether the same was received in pledge or purchased as secondhand merchandise for resale; provided, however, that no such submission shall be required if such applicant has been lawfully operating as a pawnbroker at the time of application, and if the chief of police verifies that the applicant is current on all reporting requirements.

(3)   An applicant for a license permitting the conduct of precious metal dealer activities shall submit a detailed inventory and description of all precious metals held by the applicant which were purchased by the applicant as part of a transaction regulated hereunder; provided, however, that no such submission shall be required if such applicant has been lawfully operating as a precious metal dealer at the time of application, and if the chief of police verifies that the applicant is current on all reporting requirements.

(4)   A license fee as required by this article shall be established and reviewed from time to time in the adopted Fee Resolution.

(d)   Each license shall be issued for a term of one year from the date of issuance.

(e)   Any person engaged in business as a pawnbroker or precious metal dealer in the City on the effective date of this article may, if such person submits an application for licensure hereunder within 30 days thereafter, continue to engage in such business unless and until such application is denied by the City. If a person so engaged fails to submit an application for licensure hereunder within 30 days from and after the effective date of this article, such person shall cease to engage in such business on and after the thirty-first day after such effective date and shall not thereafter engage in any such business except pursuant to a license therefor issued by the City.

(Ord. 880)

No license or any renewal thereof shall be granted to:

(a)   Any person who is not a citizen of the United States;

(b)   Any person who has not been an actual resident of the state of Kansas for at least two (2) years immediately preceding the date of application;

(c)   Any person who has been convicted or accepted a diversion for misdemeanor theft of criminal deprivation of property or has been convicted or pleaded guilty to a felony under the laws of this state, or any other state, or of the United States, or shall have forfeited a bond to appear in court to answer charges for any such offense within the ten (10) years immediately prior to such person’s application for a license;

(d)   Any person who has had their license revoked for cause under the provisions of this act;

(e)   Any person who is not at least twenty-one (21) years of age;

(f)    Any person who at the time of application for renewal of any license issued hereunder would not be eligible for such license upon a first application;

(g)   Any person who does not own the premises for which a license is sought, unless that person can provide a written lease therefor for at least three-fourths of the period for which the license is to be issued;

(h)   Any person whose spouse would be ineligible to receive a license hereunder for any reason other than the age, citizenship and residence requirements;

(i)    Any partnership, unless all of the partners shall be eligible to receive a license as an individual; or

(j)    A corporation, if any officer, manager, director or stockholder would be ineligible to receive a license as an individual.

(Ord. 880)

(a)   The license of each pawnbroker or precious metal dealer shall state:

(1)   The address at which the business is to be conducted;

(2)   The full name of the licensee;

(3)   If the licensee is a partnership, the name of the members thereof; and

(4)   If the licensee is a corporation, the date and place of its incorporation and the names of all shareholders thereof.

(b)   Such license shall be kept conspicuously posted in the licensed place of business of the licensee and shall not be assignable nor transferable to any other party or to any other locations.

(c)   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 requirements for issuance of an initial license.

(Ord. 880)

(a)   A licensee shall in all respects comply with each of the provisions and requirements of this article, and of K.S.A. 16-709, et seq., as the same may now provide or as they may hereafter be amended or replaced, with said statutory requirements are hereby incorporated herein by reference.

(b)   In relation to the reporting requirements of K.S.A. 16-715, a licensee is hereby required to submit to the chief of police a report by 5:00 p.m. on each business day of the prior business day’s transactions which are required to be reported. Such reports shall be submitted in such form and by such means as the chief of police may prescribe from time to time.

(c)   Failure to comply with any such provisions or requirements shall constitute cause for the suspension or revocation of the license. A pawnbroker license may be suspended or revoked due to violation of regulations pertaining to precious metal dealing, and a precious metal dealer license may be suspended or revoked due to violation of regulations pertaining to pawnbroking.

(d)   A license issued pursuant to this article may be suspended or revoked, after due notice and public hearing thereon before the governing body, if the licensee:

(1)   Has failed to pay the annual license fee;

(2)   Has violated any provision of this article; or

(3)   Has been convicted or accepted a diversion for misdemeanor theft of criminal deprivation of property been convicted of or has pleaded guilty to a felony under the laws of Kansas or any other state, or of the United States, or shall have forfeited a bond to appear in court to answer charges for any such offense, if such conviction or plea occurred subsequent to or within the 10 years immediately preceding the date of the licensee’s application hereunder.

(e)   A license issued pursuant to this article shall be revoked, after due notice and hearing thereon before the governing body, if it shall be proved by a preponderance of evidence that the licensee sold any handgun to a minor.

(f)    Hearings pursuant to this article shall be held within 30 days after written notice thereof to the licensee, and a written decision on the alleged violation shall be issued by the governing body within sixty (60) days after the conclusion of the hearing. No suspension, revocation or surrender of any such license shall impair or affect any obligation created by a preexisting lawful contract between the licensee and a borrower.

(Ord. 880)

The violation of any provision of this article shall be a class “B” violation under the penalty provisions of the Uniform Public Offense Code.

(Ord. 880)