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. Pawnbroker does not include any person operating under the supervision of the state banking commissioner, credit union administrator or the consumer credit commissioner of this state.

(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 un-circulated 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. 1452, Sec. 1)

(a)   No person shall engage or continue in business as a pawnbroker or precious metal dealer within the city, without first obtaining a license therefor from the city clerk.

(b)   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 proposes 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 article. Each applicant also shall submit with the application:

(1)   A statement that the applicant is the holder of a valid registration certificate issued by the director or revenue pursuant to K.S.A. 79-3608 for each place of business for which application for a license is made;

(2)   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 dated therein, indicating whether the same was received in pledge, purchased as secondhand merchandise or precious metal purchased for resale.

(c)   The license application shall be in a form approved by the attorney general. Each application shall be accompanied by a fee which shall be established from time to time by Resolution of the Governing Body of the City of Augusta, Kansas. All such fees received by the city clerk shall be deposited in the city general fund. Any license or renewal thereof shall be subject to the qualifications set out in K.S.A. 16-708.

(Ord. 1452, Sec. 2)

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 its incorporation, and the names of all shareholders thereof. Such license shall be kept conspicuously posted in the place of business of the licensee and shall not be 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 act governing the issuance of an initial license.

(Ord. 1452, Sec. 3)

Each licensee shall keep and use in the licensee’s business such books, accounts and records as will enable the city to determine whether such licensee is complying with the provisions of this article. Such city may examine or cause to be examined the 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 article. The duly designated representatives of the city shall have and be given free access to all such books, accounts, papers, records, files, safes and vaults.

(Ord. 1452, Sec. 4)

(a)   On or before Tuesday of each week, every pawnbroker or precious metal dealer shall report the description of all property received in pledge or purchased as a pawnbroker or precious metal dealer during the preceding calendar week, in whatever quantity received. Such report shall include all property purchase 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 has made the reports required by this section with respect to such property or merchandise.

(b)   Such report shall be submitted to the director of public safety of the city.

(c)   All reports made pursuant to this section shall comply with and be submitted in accordance with the terms of any applicable city ordinances requiring such reporting.

(d)   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 that the director of public safety receives the report of its acquisition in compliance with this section. If the director of public safety has probable cause to believe that any precious metal reported by a dealer has been stolen, he or she 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 director of public safety notifies the dealer in writing that the waiting period is terminated at an earlier time.

(e)   Reports made pursuant to this section shall be available for inspection only by law enforcement officers and county and district attorney’s and their employees, for law enforcement purposes.

(K.S.A. 16-715; Ord. 1452, Sec. 5)

(a)   At the time of making a loan, a pawnbroker shall enter in a book kept for that purpose:

(1)   The date, duration, amount and charges of every loan made by the pawnbroker;

(2)   A full and accurate description of the property pledged;

(3)   The name, age, residence and driver’s license or other personal identification number of the pledgor.

(b)   At the time of purchasing precious metal, a precious metal dealer shall enter in a book kept for that purpose:

(1)   The date of the purchase;

(2)   A full and accurate description of each item purchased, including any identifying letter, numbers or marks on the items; and

(3)   The name, age, residence and driver’s license or other personal identification number of the seller.

(c)   The record required by this section shall be maintained 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.

(Ord. 1452, Sec. 6)

(a)   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.

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

(Ord. 1452, Sec. 7)

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

(1)   Proof of identification; and

(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 and stating when, where and in what manner such metal was acquired by the seller.

(b)   When converted or stolen property has been pawned or sold to a precious metal dealer and the pawnbroker or dealer refuses to redeliver such property to the rightful owner upon demand and presentation of a bill of sale or other proper evidence of ownership by the owner, and legal action by the rightful owner to recover the property becomes necessary, the court may assess the pawnbroker or dealer for reasonable attorneys’ fees incurred by the rightful owner; if the court finds that the pawnbroker or dealer wrongfully withheld the converted or stolen property.

(Ord. 1452, Sec. 8)