Bill No.    351    , 1992

Ordinance No.   16,153   , 1992

Introduced by Councilman           Shear            

AN ORDINANCE

AMENDING TITLE VIII, OCCUPATIONS, BUSINESSES AND LICENSING, OF THE REVISED ORDINANCES OF ST. LOUIS COUNTY, 1974, AS AMENDED, BY ENACTING A NEW CHAPTER 818, ENTITLED "THE PAWNBROKERS' CODE".

BE IT ORDAINED BY THE COUNTY COUNCIL OF ST. LOUIS COUNTY, MISSOURI, AS FOLLOWS:

SECTION 1.    Title VIII, Occupations, Businesses and Licensing, of the Revised Ordinances of St. Louis County, Missouri, 1974, as amended, is amended by enacting a new Chapter 818, entitled "The Pawnbrokers' Code", as follows:

SUBCHAPTER A. SHORT TITLE, SCOPE AND DEFINITIONS

818.010 Short title.
This chapter shall be known and may be cited as "The Pawnbrokers' Code".

818.020 Scope.
The provisions of this chapter shall be effective in the area of St. Louis County outside incorporated cities towns and villages.

818.030 Definitions.
Unless it appears that a different meaning is intended, the following words shall have the meaning given them by this section:

1. "Chief of Police", the Superintendent of the St. Louis County Police Department.
2. "Director", the Director of Revenue for St. Louis County, Missouri.
3. "Month", that period of time from one date in a calendar month to the corresponding date in the following calendar month, but if there is no such corresponding date, then the last date of such following month, and when computations are made for a fraction of a month, a day shall be one-thirtieth of a month.
4. "Net Assets", the book value of the current assets of a person or pawnbroker less its applicable liabilities as stated in this subdivision. Current assets include the investment made in cash, bank deposits, merchandise inventory, and loans due from customers excluding the pawn service charge. Current assets do not include the investments made in fixed assets of real estate, furniture, fixtures, or equipment; investments made in stocks, bonds, or other securities, investments made in prepaid expenses or other general intangibles. Applicable liabilities include trade or other accounts payable; accrued sales, income, or other payables that are unsecured or secured in whole or part by current assets. Applicable liabilities do not include liabilities secured by assets other than current assets. Net assets must be represented by a capital investment unencumbered by any liens or other encumbrances by any liens or other encumbrances to be subject to the claims of general creditors;
5. "Pawnbroker", any person engaged in the business of lending money on the security of pledged goods or engaged in the business of purchasing tangible personal property on condition that it may be redeemed or repurchased by the seller for a fixed price within a fixed period of time;
6. "Pawnshop", the location at which or premises in which a pawnbroker regularly conducts business;
7. "Person", an individual, partnership, corporation, joint venture, trust, association or any other legal entity however organized;
8. "Person of good moral character", a person who has not been convicted of any state, federal or municipal offense involving drugs or narcotics, robbery, burglary, theft, stealing, receiving stolen property, embezzlement, extortion, forgery, gambling, bribery, perjury, any weapons offense, or any crime of violence within a five-year period.
9. "Pledged goods", tangible personal property other than choses in action, securities, or printed evidence of indebtedness, which property is deposited with or otherwise actually delivered into the possession of a pawnbroker in the course of his business in connection with a pawn transaction;
10. "Secured personal credit loan", every loan of money made in this state, the payment of which is secured by a security interest in tangible personal property which is physically delivered into the hands of the lender at the time of the making of the loan and which is to be retained by the lender while the loan is a subsisting obligation.

SUBCHAPTER B. INITIAL PAWNBROKER LICENSES

818.040 License required.
No person shall operate a pawnshop in unincorporated St. Louis County unless such person obtains a pawnshop license issued by the Director of Revenue of St. Louis County, Missouri. A license is required for each place where pawnbroking business is transacted, and no one shall act as an agent, employee or solicitor for any pawnbroker while such pawnbroker is engaged in such business at a place other than that specified in the license.

818.050 Licensing year is calendar year.
All licenses issued under this chapter are for a period of one year, or portion of one year, and expire on midnight of December 31. Any license which is issued for a portion of a year shall be prorated by the Director.

818.060 Application for new pawnshop license.
An application for a new pawnshop license shall be under oath and shall state the full name and place of residence of the applicant, the place where the business is to be conduced, and other relevant information required by the Director. If the applicant is a partnership, the application shall state the full name and address of each partner, and whether such partner is a general partner or a limited partner. If the application is a corporation, the applicant shall state the full name and address of each officer, shareholder, and director. The application shall be accompanied by:

1. An investigation fee of five hundred dollars ($500.00) if the applicant is unlicensed at the time of applying for the pawnshop license or two hundred fifty dollars ($250.00) if the application involves a second or additional license to an applicant previously licensed for a separate location or involves substantially identical principals and owners of a licensed pawnshop at a separate location; and
2. Proof of general liability insurance in the amount of $20,000.00, and
3. An annual fee of five hundred dollars ($500.00).

818.070 Transfer of existing pawnshop license; change of ownership of licensed pawnshop.
Transfer of an existing pawnshop license or the change of ownership of a licensed pawnshop is the same as an initial application for a new pawnshop license. Licenses are personal to the licensee.

818.080 Application for license.
The application form for a new license, a renewal license, transfer of an existing license or change of ownership of a licensed pawnshop shall be on forms prescribed and provided by the Director, and shall contain information sufficient to inform the Director regarding the qualifications of the applicant for a license or renewal license.

818.090 Investigation by director.
The Director shall investigate the facts contained in an application for a new pawnshop license, and shall request the assistance of the Chief of Police and any other County employee having knowledge of the facts contained in the application or who is authorized to investigate those facts.

818.100 Standards for issuance.
No license shall be issued:

1. To any person who is not of good moral character, or to any pawnshop employing persons who are not of good moral character;
2. To any person who makes a false statement of material facts in the application for a license or renewal license.
3. To any person who does not have net assets of at least fifty thousand dollars ($50,000.00) readily available for use in conducting business as a pawnshop for each licensed pawnshop.
4. To any person who does not file with the Director a bond satisfactory to the Director in an amount of five thousand dollars ($5,000.00) with a surety company qualified to do business in this state. The aggregate liability of such surety shall not exceed the amount stated in the bond. The bond shall run to the state for the use of the state and of any person or persons who may be a cause of action against the obligor of such bond under the provisions of the ordinance or Sections 367.011 to 367.060, RSMo. Such bond shall be conditioned that the obligor will comply with the provisions of Sections 367.011 to 367.060, RSMo, and of this chapter, and by all rules and regulations adopted by the Director pursuant to Section 818.210 and will pay to the state and to any such person or persons any and all amounts of money that may become due or owing to the state or to such person or persons from such obligor under and by virtue of the provisions of Section 367.011 to 367.060 RSMo, or by virtue of this chapter or any rules adopted by the Director pursuant to Section 818.210, during the time such bond is in effect.

If the Director is unable to verify that the applicant meets the net assets requirement for a licensed pawnshop, the Director may require a finding, including the presentation of a current balance sheet, by an independent certified public accountant, that the accountant has reviewed the books and records of the applicant and that the applicant meets the net assets requirement of this section.

818.110 Exemption From requirement for new pawnshop license.
No person who is lawfully operating a pawnshop on the effective date of this chapter shall be required to obtain a license under this section in order to continue operating such pawnshop, so long as such person does not violate any other provision of Section 367.011 to 367.060, RSMo. Such persons may operate pawnshops and receive annual renewal license even though the operation of such pawnshop might cause the number of pawnbrokers in unincorporated St. Louis County to exceed the number determined by operation of Section 818.120.

818.120 Limitation on number of pawnbrokers in unincorporated county.
Subject to the provisions of Section 818.120, no license for engaging in the business of pawnbroker shall be issued when the issuance thereof would increase the number of such licenses outstanding and in force at that time to more than one per each fifty thousand (50,000) inhabitants residing in that portion of St. Louis County outside of incorporated cities, towns and villages.

818.130 Subsequent license applications.
Subsequent to the first year for which a license is issued to a pawnbroker, each pawnbroker shall make a renewal application to the Director. The application shall be filed by December 1 of the current licensing year, and shall be on the forms and shall contain such information as the Director may require. The forms shall contain such information as will assist the Director in determining whether conditions have changed and whether a renewal license should be issued for the subsequent licensing year. The Director may request the assistance of the Chief of Police or any other County employee having knowledge of the truth or falsity of the matters contained in the application, or who is able to investigate those matters. The annual fee for the issuance of a renewal license is five hundred dollars ($500.00). A renewal license is required in those cases where no initial license was issued pursuant to the provisions of Section 818.110.

818.140 Suspension or revocation of license.

1. If the Director believes that conditions have changed such that the holder of a pawnshop license would not still be eligible to receive a pawnbroker's license, the Director may suspend or revoke the pawnbroker's license.
2. If the Director believes that the holder of a pawnshop license may remedy the situation giving rise to the Director's belief that conditions have changed, the Director shall suspend the license. If the Director believes that the changed condition or conditions are such that, if true, the licensee would not be able to remedy the situation in a reasonable time, then the Director shall revoke the pawnshop license.
3. If the Director believes that the safety, morals, or peace of residents of the County is immediately affected by the change in conditions, the Director may suspend or revoke the license prior to a hearing, but he shall afford the licensee a hearing within five (5) days of the suspension or revocation if the licensee desires such a hearing. If the Director believes that the changed condition is not of such imminent hazard to the safety, morals, or peace of the residents of the County, he may have a hearing prior to his action. He shall give the licensee at least ten (10) days notice of the hearing.

SUBCHAPTER C. OPERATION OF PAWNSHOPS

818.150 Receipt for pledged property; contents; loss of, effect.

1. At the time of making any secured personal credit loan, the lender shall execute and deliver to the borrower a receipt for and describing the tangible personal property subjected to the security interest to secure the payment of the loan. The receipt shall contain the following:
   
   
   1. The name and address of the pawnshop;
   2. The name and address of the pledgor, the pledgor's description, and the driver's license number, date of birth, height, weight, sex, race or nationality, military identification number, identification certificate number, or other official number capable of identifying the pledgor;
   3. The date of the transaction;
   4. An identification and description of the pledged goods, including serial numbers if reasonably available;
   5. The amount of cash advanced or credit extended to the pledgor;
   6. The amount of the pawn service charge;
   7. The total amount which must be paid to redeemed the pledged goods on the maturity date;
   8. The maturity date of the pawn transaction; and
   9. A statement to the effect that the pledgor is not obligated to redeem the pledged goods, and that the pledged goods may be forfeited to the pawnbroker sixty days after the specified maturity date.
   
   
2. The pawnbroker shall keep a register of all items pawned at each pawnshop, which register shall contain the information listed in subsection 1 of this section.
3. All pawnbrokers shall install a proper camera in operative condition and use such equipment to photograph every person and receipts of pawn shop tickets given to such persons with all loans to persons and with all purchases of items from persons.
4. All pawnbrokers shall display, in a prominent place, a notice to customers that they are required to be photographed when they pawn, sell or offer as a part or full payment any item to the pawnbroker or secondhand dealer.
5. All such photographs shall be developed and kept by the pawnbroker for a period of at least one year following the taking of the photograph.
6. The register and photographs provided for herein shall at all times be kept open to the inspection of police officers duly sworn by the State of Missouri under Chapter 590 RSMo. Every pawnbroker shall also, upon request, show and exhibit to any such officer, any article purchased, taken or received by the pawnbroker if the item is still in the possession of the pawnbroker.
7. If a pawn ticket is lost, destroyed, or stolen, the pledgor may so notify the pawnbroker in writing, and receipt of such notice shall invalidate such pawn ticket, if the pledged goods have not previously been redeemed. Before delivering the pledged goods or issuing a new pawn ticket, the pawnbroker shall require the pledgor to make a written affidavit of the loss, destruction or theft of the ticket. The pawnbroker shall record on the written statement the identifying information required, the date the statement is given, and the number of the pawn ticket lost, destroyed, or stolen. The affidavit shall be signed by a notary public appointed by the secretary of state pursuant to section 486.205, RSMo, to perform notarial acts in this state.

818.160 Loans due, when--return of collateral, when--restrictions.

1. Every secured personal credit loan shall be due and payable in lump sum thirty days after the date of the loan contract, or, if extended, thirty days after the date of the last preceding extension of the loan, and if not so paid when due, it shall, on the next day following, be in default. The lender shall retain possession of the tangible personal property subjected to the security interest to secure payment of any secured personal credit loan for a period of sixty (60) days next following the date of default. If, during the period of sixty days, the borrower shall pay to the lender the principal sum of the loan, with the loan fee or fees, and the interest due thereon to the date of payment, the lender shall thereupon deliver possession of the tangible personal property to the borrower. But if the borrower fails, during the period of sixty days, to make payment, the title to the tangible personal property shall, on the day following the expiration of the period of sixty days, pass to the lender, without foreclosure, and the right of redemption by the borrower shall be forever barred.
2. A pledgor shall have no obligation to redeem pledged goods or make any payment on a pawn transaction.
3. Except as otherwise provided herein, any person properly identifying himself and presenting a pawn ticket to the pawnbroker shall be presumed to be entitled to redeem the pledged goods described therein.
4. A pawnbroker shall not:
   
   
   1. Accept a pledge from a person who is under eighteen years of age;
   2. Make any agreement requiring the personal liability of a pledgor in connection with a pawn transaction;
   3. Accept any waiver, in writing or otherwise, of any right or protection accorded a pledgor under this ordinance or other law;
   4. Fail to exercise reasonable care to protect pledged goods from loss or damage;
   5. Fail to return pledged goods to a pledgor upon payment of the full amount due the pawnbroker on the pawn transaction. In the event such pledged goods are lost or damaged as a result of a pawnbroker negligence while in the possession of the pawnbroker, it shall be the responsibility of the pawnbroker to replace the lost or damaged goods with like kind of merchandise. Lenders shall not be responsible for loss of pledged articles due to acts of God, acts of war, or riots. Each lender shall employ, if reasonably available in his area, a reputable company for the purpose of fire and theft security;
   6. Purchase or take in trade used or secondhand personal property unless a record is established that contains:
      
      
      1. The name, address, physical description, and the driver's license number, military identification number, identification certificate number, or other official number capable of identifying the seller;
      2. A complete description of the property, including the serial number if reasonably available, or other identifying characteristic; and
      3. A signed document from the seller providing that the seller has the right to sell the property.

818.170 Pawnshop not to be used as a residence.
No pawnbroker or member of the pawnbroker's family, or employee, or any other person shall be permitted to live in a pawnshop or in rooms connecting therewith.

818.180 Hours of operation.
No pawn shop shall be open for business or receive as pawned, pledged or purchased on any condition whatsoever, any article of personal property or other valuable thing between the hours of 8:00 p.m. on any day and 7:00 a.m. on the following day.

818.190 Notice of goods to be shipped out of town.
Every pawnbroker shall give the Chief of Police notice of all pawned goods to be shipped out of town, which notice shall state the name of the pledgee and the destination and date of shipment. Such goods shall not be shipped for at least seven (7) days after delivery of the copy of the register to the superintendent.

818.200 Adequate books and records required.
Each licensee shall keep, consistent with accepted accounting practices, adequate books and records relating to the licensee's pawn transactions, which books and records shall be preserved for a period of at least two (2) years from the date of the last transaction recorded therein.

SUBCHAPTER D. RULES

818.210 Rules.
Following public hearing, the Director may issue such rules and regulations as he deems necessary to implement this chapter and the policies contained herein.

SUBCHAPTER E. PENALTIES

818.220 Penalty and other remedies.

1. Any person who violates any provision of this chapter is guilty of a violation of this chapter and may be punished by a fine not to exceed one thousand dollars or by imprisonment in the county jail for not more than one year, or by both such fine and imprisonment.
2. Notwithstanding the availability of any other remedy, or the availability of prosecution of a violator, the County Counselor may request a court of competent jurisdiction to enforce this code for an equitable remedy.

ADOPTED: October 1, 1992

JOHN R. SHEAR
CHAIRMAN, COUNTY COUNCIL

APPROVED: October 1, 1992

BUZZ WESTFALL
COUNTY EXECUTIVE

ATTEST: JEANETTE O. HOOK
DEPUTY ADMINISTRATIVE DIRECTOR