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HomeMy WebLinkAboutOrdinance #1114 '~ ~ r ORDINANCB NO. 1]11 AN ORDINANCE AMENDING TITLE 3, CHAPTER 2 OF THE CANTON MUNICIPAL CODE REGULATING SECOND HAND DEALERS WHEREAS, the Legal and ordinance Committee has determined that it is in the best interest of the City of Canton to license and regulate all persons engaging in business within said municipality as pawnbrokers; swap shop proprietors; dealers in second hand goods; dealers in coins, precious or semi-precious metals or jewels; and other business of similar nature; and, WHEREAS, the City Council of the City of Canton, Fulton County, Illinois, has made a similar determination. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CANTON, Fulton County, Illinois, as follows: 1. That Title 3, Chapter 2, Section 5 of the Canton Municipal Code is hereby amended to read as follows: "3-2-5. SECONDHAND DEALER - DEFINED. As used in this chapter, a secondhand dealer is any person, partnership, corporation, association, joint venture, trustee, court-appointed representative or agent thereof which operates a business for profit which buys, sells, possesses on consignment for sale or trades jewelry, stamps, coins or any precious metals which may have been previously owned by a consumer; or which derives more than 35 percent of its gross receipts from the sale, consignment for sale, pledge or trade of any goods, wares or merchandise which have previously been owned by a consumer, including but not limited to, furniture, appliances, clothing, automobile accessories, books or metals, whether in bulk or manufactured state. The term secondhand dealer shall include businesses commonly known as pawnbrokers, swapshop operators, stamp dealers, coin dealers and jewelers who purchase and resell items from persons other than dealers and suppliers. The fact that any business does any of the following acts shall be prima facie proof that said business is a secondhand dealership; (1) Advertises in any fashion that it buys or sells secondhand or used items. Such advertisements shall include, but are not limited to, media advertisements, telephone listings, and signs whether on the exterior or interior of the business. (2) Devotes a significant segment or section of the business premises to the purchase or sale of secondhand or used items. 3-2-5.1. LICENSE - REQUIRED. No person, either as owner, manager, lessee, officer or agent, or in any other capacity, within the City of Canton, shall operate or permit to be operated a secondhand dealership without first having obtained a license from the City of Canton to do so. 3-2-5.2. SAME - EXEMPTIONS. The following are exempt from the requirements of this chapter: (a) Garage sales. As used in this Section, a garage sale is defined as the sale at retail of used personal property by the lawful resident(s) of residentially zoned property which garage sale is not conducted on a periodic or ongoing basis. A garage sale shall be deemed to be periodic or ongoing if a garage sale is held by the lawful resident of residentially zoned property more than four (4) days in any one calendar month. (b) Sales conducted by governmental, civic, patriotic, fraternal, educational, religious or benevolent organizations which have been in active and continuous existence for at least one year prior to the holding of the sale, or which are incorporated as a not for profit corporation by the State of Illinois. (c) Sales or purchases which are regulated by the licensing laws of the State of Illinois, including automobile dealers, used parts dealers and automotive parts recyclers. (d) Antique Dealers. As used in this Section, an antique dealer is defined as one who has a majority (51$) of his gross sales each year derived from the sale of antiques and/or primitives. As used in this Section, an antique or primitive is defined as an old and valuable art object or article no longer in production which is at least fifty (50) years old. As used in this Section, the term "sale" does not inclue an exchange, trade, or swap of items. -2- (e) The sales of used paperback books and magazines. (f) Sales and trades of baseball cards. 3-2-5.3. SAME - APPLICATION. An application for a license required by Section 5.1 shall be made in writing to the Canton City Clerk which shall minimally set forth the following: (1) The name of the individual, partnership, corporation or association applying for a license; (2) The residence, phone number, date of birth and driver's license number of the applicant or partners, or, if a corporation or association, the residence, phone number and driver's license number of the officers and all shareholders owning more than 5$ of the outstanding shares of stock; (3) The location for which the license is requested: (4) Whether the applicant, its partners, officers or listed shareholders have been convicted of any criminal offense or ordinance violation (other than traffic or parking offenses) in any jurisdiction and, if so, a list of such convictions with date and prosecuting jurisdiction; and, (5) Whether the applicant, its partners, officers or listed shareholders have held a license or had an interest in a license issued by the or any other jurisdiction regulating the purchase or sale of secondhand property revoked for cause, and, if so, list the date of revocation and jurisdiction. 3-2-5.4. SAME - FEES. The applicant shall pay the City Clerk prior to filing an application a license fee of Fifty Dollars ($50.00) per calendar year or part thereof. Should the license be denied, the license fee shall not be refunded to the applicant. The license shall be renewed annually and a Fifty ($50.00) Dollar annual renewal fee shall be paid in advance for the calendar year or part thereof; if no background investigation is required, the annual renewal fee shall be fifteen ($15.00) Dollars. 3-2-5.5. SAME - INVESTIGATION. Upon receipt of an application for a license the City Clerk shall cause a copy thereof to be sent to the Police Department -3- which shall report back to the City Clerk in twenty-one (21) days whether the application is in accordance with applicable city codes. 3-2-5.6. SAME - ISSUANCE. Upon receipt of the report from the police department referred to in Section 5.5, the City Clerk shall issue the license requested unless the City Clerk shall find: (1) The applicant is under the age of eighteen (18); (2) The location requested is not in a permanent structure; (3) The applicant, its partners, officers or listed shareholders have been convicted of or have plead guilty to any offense related to theft, burglary, or purchasing or receiving stolen items under the laws of this state, city or any other jurisdiction within the past ten (10) years, or have forfeited a bond to appear in court to answer for charges for such offenses during said time; (5) That the location requested and structure to be used would not comply with all applicable laws including the zoning code of the City of Canton; (6) That the applicant, its partners, officers or listed shareholders have held a license or had an interest in a license issued by the City of Canton or any other jurisdiction regulating the purchase or sale of second hand property which was revoked for cause; or (7) That the applicant, its partners, officers or listed shareholders has knowingly furnished false or misleading information or withheld relevant information on any application for a license required by Section 5.3 of this Chapter or any investigation into any application. 3-2-5.7. SAME - POSTING. Every license issued under the provisions of this chapter shall, at all times during the period for which it is effective, be posted in a conspicuous place at or near the principal entrance to the premises for which the license is issued. -4- 3-2-5.8. SAME - REVOCATION. Any license issued for a secondhand dealer may be revoked or suspended for a period not to exceed thirty (30) days by the Mayor if he shall find after hearing; (1) That the licensee, its officers, agents or employees have violated any of the provisions of this chapter, the laws of the State of Illinois, or ordinances of the City of Canton in the operation of the business; or, (2) That the licensee, its partners, officers or shareholders have been convicted of any offense set forth in Section 5.6 of this Chapter; or, (3) That the license, partners, officers or shareholders have knowingly furnished false or misleading information or withheld relevant information on any application for a license required by Section 5.3 of this Chapter or any investigation into any application. The licensee shall be responsible for the acts of its agents, servants and employees in the operation of the business. Prior to holding a hearing concerning the question of whether a license shall be revoked or suspended, the Mayor shall give at least ten (10) days written notice to the licensee setting forth the alleged violation. The licensee may present evidence and cross-examine witnesses at such hearing. 3-2-5.9. SAME - BOND. Every applicant for a license under this chapter shall file with the City Clerk a surety bond in the penal sum of One Thousand Dollars ($1,000.00), with two (2) or more sureties owning real estate in the City of Canton approved by the City Attorney, or corporate surety licensed with the State of Illinois, with the applicant as obligee, conditioned for the faithful and due performance of the provisions of this chapter and the laws of the State of Illinois concerning the operation of the licensed business, and the payment of all fines and penalties by reason of the violation thereof. -5- 3-2-5.10. SAME - TRANSFER. (a) No License issued under this chapter may be transferred to any other person, partnership, corporation or association. (b) No corporate Licensee shall permit any transfer of its stock which would vest in aggregate more than 5$ of the stock outstanding in said corporation in any shareholder unless said shareholder has first been certified by the City Clerk as meeting the requirements of Section 5.6 of this chapter. 3-2-5.11. CHANGE OF LOCATION. No licensee shall carry on any business required to be licensed under this chapter except at the location designated on the license. Should the licensee wish to change the location, application shall be made to the City Clerk for such change in writing. The City Clerk shall approved the change of location unless the new location would be contrary to the provisions of this chapter or any of the ordinances of the City. There shall be no fee for filing any application for change of location. 3-2-5.12. HOURS OF OPERATION. No licensee shall purchase any goods, wares, articles or things, whatsoever, from any person, firm, partnership, corporation, or association, between the hours of 9:00 p.m. and 7:00 a.m. the next day. 3-2-5.13. PROHIBITED PURCHASES. No licensee shall purchase or accept any goods, wares, articles, or things under any of the following circumstances. (1) Where the seller is less than the age of 18; (2) Where the seller is intoxicated. Intoxicated is defined as a seller whose mental or physical functioning is substantially impaired as a result of the use of alcohol or drugs. (3) Where the seller fails to present two forms of identification of which at least one contains the seller's full legal name, date of birth, a photograph or full physical description, and an identification number; (4) Where the article to be purchased had an original manufacturers serial number at the time it was new, but no longer legibly exhibits said number. -6- 3-2-5.14. PURCHASING, SELLING, ETC., WEAPONS PROHIBITED. No licensee shall deal in, or buy or sell, or display in his shop, any pistol, revolver, derringer, Bowie knife, dirk or other deadly weapon of like character, capable of being secreted upon the person unless such licensee shall also possess valid and current licenses or permits as required by applicable Federal, State, or local laws, ordinances, rules, or regulations. 3-2-5.15. RECORD OF PURCHASES. Every licensee shall keep at the licensed location a register on multicopy forms provided by the Chief of Police in which shall be entered in ink the following information: a succinct and accurate description of all property taken, purchased or received in the course of the business licensed under this chapter including any number or inscription that may be in or on said property; the full legal name of the person from whom the property is received including full first name and middle initial, if any; such person's current residential address, date of birth and physical description; the amount given or loaned to such person and the terms thereof; the signature of the employee who received the property; and the signed statement of the person from whom the property was obtained that he/she is over 18 years of age and the legal owner of same clear of all attachments and with the legal right to sell. Entries made in the register shall be printed or typed and shall be legible. All entries shall be made immediately upon receipt or purchase of any property. The register shall be open to inspection by any police officer during normal hours of operation. 3-2-5.16. REPORTS TO CHIEF OF POLICE. It shall be the duty of every licensee to have available for delivery to the Chief of Police, or officer designated by the Chief, every business day and before the hour of 12:00 noon, a legible and correct copy from the register of all personal property, or other valuable things, received or deposited or purchased the preceding day in whatever quantity received, -7- including property purchased as secondhand merchandise at wholesale, secondhand merchandise taken in for sale or possessed on consignment for sale, and secondhand merchandise taken in for trade. No person shall be required to furnish such description of any new property purchased from manufactures or wholesale dealers having an established place of business, or of any goods purchased at open sale, or from a bankrupt stock. Such goods must be accompanied by a bill of sale or other evidence of open and legitimate purchase and must be shown to the Chief of Police and members of the Police Department, when demanded. 3-2-5.17. INSPECTION OF PREMISES; SEIZURES. Every licensee and every person employed by the licensee in the conduct of business, shall admit to any and every part of the premises designated in the license, during normal business hours, any law enforcement officer of the City to examine any goods, articles, things, pledges, pawns, or books or other records on the premises dealing with purchase or sale of used property and to search for and to take into possession any article known or for which such officer has reasonable grounds to believe to have been stolen. Such law enforcement officer may make any such search or seizure as is provided for in this Section, and property so seized shall be receipted for by such officer, who shall fully describe the seized property and sign the receipt. Should the officer determine the property not to be stolen, the officer shall promptly return same to the licensee and obtain a receipt therefor, as aforesaid. 3-2-5.18. WAITING PERIOD. The licensee shall keep all property purchased or received from an individual available for inspection for a period of seven calendar (7) days before it can be sold or traded. The waiting period may be waived in writing by the chief of police, or, by his authorized representative. -8- 3-2-5.19. PENALTY. Any person who shall violate any of the provisions of this chapter shall upon conviction be subject to a fine of not less than fifty ($50.00) dollars nor more than five hundred ($500.00) for each offense. Each day any violation of any provision of this chapter shall continue shall constitute a separate offense. The licensee shall be fully responsible for any violation of this chapter occasioned by or with the condonation of the licensee's partners, officers, shareholders, agents, or employees; any such violation shall be imputed to the licensee. 3-2-5.20. SEVERABILITY CLAUSE. If any section, subsection, subdivision, paragraph, sentence clause or phrase in this chapter, or any part thereof, or application thereof to any person, firm, corporation, public agency or circumstance, is for any reason held to be unconstitutional or invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this chapter or any part thereof. It is hereby declared to be the legislative intent of the City Council that this chapter would have been adopted had such unconstitutional or invalid provision, clause, sentence, paragraph, section, or part thereof not then been included. 2. This ordinance shall be in full force and effect immediately upon its passage by the City Council, approval by the Mayor and publication in pamphlet form as provided by law. 3. That Ordinance Number 913, passed by the City Council on January 5, 1982, is, as of the effective date of this Ordinance rescinded in its entirety. PASSED by the City Council of the City of Canton, Fulton County, Illinois this ~gth day of q,~g„St , 1986 , and upon a roll call vote as follows: AYES: Aldermen Kovachevich, Zilly, Steck, Sarff, Bohler, NAYS: Aldermen Workman, May, Chapman. ABSENT: None. -9- APPROVED: / ``// ~ Donald E. Edwards, Mayor. ATTEST: Nancy W1lites, City Clerk. Fa~~~ac~~aio~ ~ns~ruc~ions f~] Do not pohiish ~'~:~lish in r~a~~~hlet fora only CJ Fu~lisl~ in a ~ene~~ai circolatiun newspaper ~I ~~ 1$~ _ City Att. _ pate -10-