CHAPTER 18
LICENSING

ARTICLE 3
PAWNBROKERS

Section 18-3-1. Compliance--License Required. It shall be unlawful for any person to regularly engage in the business of making contracts for purchase or purchase transactions in the course of business except as provided in and authorized by this Ordinance and without having first obtained an annually renewable and non-transferable pawnbroker's license issued by the City of Northglenn.

[Source: Ord. 1131, 1995]

Section 18-3-2. Licensing Application--Fee. The City of Northglenn shall issue a license according to the requirements of this Ordinance. All applicants for a pawnbroker license shall file an application for such license with the City Clerk on forms to be provided by the City of Northglenn. The application for a license under this article shall contain the information required by this Ordinance and any other pertinent information required by the Northglenn Police Department. Each individual applicant, partner of a partnership, officer, director and holder of ten percent (10%) or more of the corporate stock of a corporate applicant, and all managers shall be named in each application, and each of them shall be photographed and fingerprinted by the Northglenn City Clerk. Each individual applicant, partnership, or corporate applicant shall, in addition, furnish as an attachment to and part of such application evidence that the proposed establishment meets the requirements of the comprehensive zoning ordinance, proof of the applicant's right to possession of premises wherein the pawnbroker business will be conducted, a financial questionnaire, consent to release of financial information and a current financial statement or balance sheet and income account statement for the preceding twelve(12) month period prior to the date of the application. Each corporate applicant shall furnish evidence that it is in good standing under the statutes of the State of Colorado, or in the case of a foreign corporation, evidence that it is currently authorized to do business in the State of Colorado. The license issued under this Ordinance shall be applicable only for the location identified in the license application, and only for the owner/applicant making the license application. Each applicant shall pay a non-refundable application fee at the time of filing an application and at the time an amendment is made to the application. The non-refundable application fees shall be in the amount of five hundred dollars ($500.00) for the filing of an application, and two hundred fifty dollars ($250.00) for filing an amendment to an application.

[Source: Ord. 1131, 1995]

Section 18-3-3. License Fee. The City finds, determines and declares that considering the nature of the pawnbroker business and the relationship of such business to the municipal welfare, as well as the relationship thereto to the expenditures required of the City and all other matters properly to be considered in relation thereto, the classification of such business as a separate type of business or occupation requiring a separate license fee is reasonable, proper, uniform, nondiscriminatory, and necessary for a just and proper distribution of costs for City services. Accordingly, the City hereby levies and assesses for each year an annual City pawnbroker license fee. The annual license fee for carrying on the business of pawnbroking shall be five thousand dollars ($5,000.00) payable in advance. Any license issued pursuant to this article shall expire on the thirty-first (31st) day of December of every year. Fees required under this article may be prorated as follows, when the license granted is not a renewal: one-quarter (1/4) of the fee for each quarter or fraction thereof remaining in the year.

[Source: Ord. 1131, 1995]

Section 18-3-4. Non-Transferability of License. Any license issued pursuant to this Ordinance shall not be transferable. Any such license may not be transferred to either another person or another location other than that listed in the license application. Any change in the partners of a partnership, or in officers, directors, or holders of ten percent (10%) or more of the stock of a corporate licensee holding a pawnbroker license shall result in termination of the license of the partnership or corporation unless a written amendment to the original application is made as required under Section 18-3-12.

[Source: Ord. 1131, 1995]

Section 18-3-5. License Renewal. Annual renewal requests must be filed with the City Clerk no later than the first (1st) business day of December of each calendar year and shall be made under oath, stating that no events have occurred which would result in a different response than that contained in the original application or any renewal thereof. If circumstances have changed, the applicant must state with particularity the change, and respond appropriately to all questions in the application form. The request for renewal must include evidence of insurance coverage per the requirements of Section 18-3-7, herein. Every application for renewal shall have appended thereto a worksheet showing, for each of the twelve (12) months preceding the application date, revenue for goods sold, and for interest obtained from pawned items.

[Source: Ord. 1131, 1995; 1203, 1998]

Section 18-3-6. Bond Required. As part of the licensing process, the applicant shall furnish a good and sufficient bond with a surety to be approved by the City Clerk in the sum of ten thousand dollars ($10,000.00). Such bond shall be conditioned upon the faithful observance of the requirements of this Ordinance and conditioned upon the safekeeping of return of all articles in pledge by such pawnbroker.

[Source: Ord. 1131, 1995]

Section 18-3-7. Insurance Required. As part of the licensing process, the applicant shall provide fire and property damage insurance for all property the pawnbroker holds by contract, in the minimum amount of one-half (1/2) of such property's contracted value in case of damage or destruction. The applicant must provide the City Clerk proof of such insurance coverage before a pawnbroker license is issued. Proof of this insurance coverage must be provided each time a request for renewal is filed with the City Clerk.

[Source: Ord. 1131, 1995]

Section 18-3-8. Letter from Department of Community Development Required. As part of the licensing process and prior to the issuance of any pawnbroker license, the City Clerk shall obtain a report from the Community Development Department stating that the zoning of the property permits a pawnbroker establishment.

[Source: Ord. 1131, 1995]

Section 18-3-9. Investigation and Approval of Applicants Required--Non-Transferability.

(a)

Upon receipt of a properly completed application, as determined by the City Clerk, together with all information required in connection therewith, fingerprints and photographs, and payment of the application fee, the Northglenn Police Department shall conduct an investigation of the background, and character of each individual applicant, the partners of a partnership, officers, directors, and holders of ten percent (10%) or more of the corporate stock of a corporate applicant, and a proposed pawnbroker establishment.

(b)

If the Northglenn Police Department's background investigation confirms that the requirements of this ordinance have been met and that the character and general fitness of the individual applicant and of the partners, officers, directors and/or holders of ten percent (10%) or more of the stock of a corporate applicant and all managers, are such as to command the confidence of the public and to warrant the belief that the business will be lawfully, honestly, and fairly operated pursuant to this Ordinance, the City Clerk shall issue a pawnbroker license. If the investigation reveals that any applicant, partner, officer, director and/or holder of ten percent (10%) or more of the corporate stock of a corporate applicant or any of the managers, does not meet these criteria, the City Clerk will deny the applicant's request for a pawnbroker license.

(c)

Upon concluding an investigation which reveals that the applicant's request for a pawnbroker license may be approved, and once the licensing officer receives verification that the applicant has met the bond and insurance requirements, and has received a compliance letter from the Northglenn Police Department, the City Clerk shall issue and deliver to the applicant a pawnbroker license for use only at the premises specified in the application and only by the owner/applicant making this application. If any requirements of this section have not been met, the City Clerk shall deny the applicant's request for issuance of a pawnbroker license in accordance with Section 18-3-10.

[Source: Ord. 1131, 1995; 1203, 1998]

Section 18-3-10. Denial of License.

(a)

The application for, or renewal of, a pawnbroker license may be denied by the City Clerk on grounds including, but not limited to, the following:

(1)

A finding that an individual applicant, partner, officer or director of a corporation, and/or holder of ten percent (10%) or more of the stock of a corporate applicant or manager of a pawnbroker establishment:

(i)

Fails at any time, to meet the qualifications required of an applicant by this section; or

(ii)

Violates any provision of this Section or other Ordinance of the City governing the activities permitted by the licensee; or

(iii)

Obtained the license by fraud or misrepresentation; or

(iv)

Has been convicted of a felony or any offense involving moral turpitude including, but not limited to, theft, fraud, robbery, burglary, larceny, or deceit; and such conviction, as determined by the Northglenn Police Department, would create a danger to the public health, safety, or welfare if the Licensee were to continue to engage in such conduct.

(2)

A finding that an applicant is not in good standing, or is not authorized to do business in Colorado.

(3)

The City Clerk shall make a decision to accept or deny the applicant's license or renewal thereof no later than thirty (30) days after the City Clerk has received all forms, documents and items required of the applicant by this Section and the results of the Northglenn Police Department's investigation required by Section 18-3-8.

(b)

The City Clerk shall not deny an applicant's request for a license without notice to the applicant of the reasons for such denial, and without the applicant being given an opportunity for an appeal of the City Clerk's decision as set forth in Section 18-3-11.

[Source: Ord. 1131, 1995; 1203, 1998]

Section 18-3-11. Revocation of Licenses.

(a)

A pawnbroker license may be revoked under this Ordinance if:

(1)

The licensee fails at any time, to meet the qualifications required of an applicant by this Section; or

(2)

The Licensee violates any provision of this Section or other Ordinance of the City governing the activities permitted by the Licensee; or

(3)

The licensee obtained the license by fraud or misrepresentation; or

(4)

The Licensee has been convicted of a felony or any offense involving moral turpitude including, but not limited to, theft, fraud, robbery, burglary, larceny or deceit; and such conviction, as determined by the Northglenn Police Department, would create a danger to the public health, safety, or welfare if the licensee were to continue to engage in such conduct.

(b)

If the City Clerk is made aware of the grounds in subsection (a) of this Section, the City Clerk shall have the authority to suspend or revoke the license for the remainder of its term.

(c)

No suspension or revocation is final until the licensee has been given the opportunity for a hearing to address the suspension or revocation. Such hearing shall be held within twenty (20) days of a written request for the hearing filed with the City Clerk by the licensee affected. Appeal of a denial of a request for issuance of a pawnbroker's license, or renewal thereof, shall be conducted according to this subsection. The hearing shall be conducted as follows:

(1)

Upon receipt of a request for a hearing, the City Clerk shall forward the request to the City Manager who shall serve as a hearing officer to decide the matter, and will notify the applicant or licensee of the hearing date by mail.

(2)

The City Manager is hereby granted the authority to sustain, reverse, or modify the City Clerk's decision, and/or upon a showing by the applicant or licensee of mitigating factors, may suspend the license for a period of time and/or impose on the applicant or licensee, reasonable conditions on the license or any renewal thereof to secure compliance with this Section.

(3)

Any hearing presented pursuant to this Section shall be conducted in compliance with standards of procedural due process applicable to administrative hearings, including the right to present testimony and to confront witnesses.

(4)

The City Manager shall apply the following standards for review: (i) Whether the City, through the order of revocation, suspension, or denial, abused its discretion; (ii) Acted arbitrarily; or (iii) Acted in excess of its authority hereunder. Additionally, the licensee or applicant shall have the burden to show by a preponderance of the evidence why the revocation, suspension, or denial of license, or renewal thereof, was improper under the above standards. It shall also be the burden of the licensee to establish the mitigation in contesting any order of revocation or suspension.

(5)

The City Manager shall conduct the hearing within twenty (20) business days of the filing of the request for hearing and shall enter written findings of fact and conclusions of law, which shall be mailed to the licensee or applicant at the address shown on the license application. The City Manager's decision shall be effective within three (3) business days of the date of the written finding required by this subsection.

(d)

If after a hearing, the suspension or revocation is upheld, the City Clerk may include reasonable orders or conditions with which the person, whose license has been suspended or revoked, shall comply to protect any work in progress and the public health, safety and welfare.

(e)

No person whose license is revoked under this Section is entitled to receive a refund of any part of the license fee paid for the license.

(f)

No person who has had a license suspended or revoked under this Section is entitled to obtain the same or any similar license under this Section during the period of suspension or revocation, either in the person's own name or as a principal in another business that applies for a license.

[Source: Ord. 1131, 1995; 1203, 1998]

Section 18-3-12. Managers, Change of Owner, Shareholder, Partner, Officer, Director or Manager.

(a)

A pawnbroker may employ a manager to operate the business, provided the pawnbroker retains complete control of all aspects of the business including, but not limited to, the pawnbroker's right to possession of the premises, his responsibility for all debts, and the pawnbroker must bear all risk of loss or opportunity for profit from the business.

(b)

In the event of a change of owner, officer, director, or holder of more than ten percent (10%) of the shares of stock of a corporate license holder, partner of a partnership, or manager, disclosure in writing by amendment of the original application for the issuance of a pawnbroker's license thereof shall be made to the City Clerk.

(c)

Notwithstanding the provisions of this Section, neither a new license or an amendment to an existing license shall be required upon any change, directly or beneficially, in the ownership of any licensed pawnshop, which is owned directly or beneficially by a person that as an issuer has a class of securities registered pursuant to Section 12 of the Securities Exchange Act of 1934 (the "Act"), or is an issuer of securities which is required to file reports with the Securities and Exchange Commission pursuant to Section 15(D) of the Act, provided that such person files with the Commissioner such information, documents and reports as are required by the provisions of the Act to be filed by such issuer with the Securities and Exchange Commission. Such issuer shall file with the City Clerk information on managers, officers and directors of such issuer of any licensed or intermediate subsidiary as is otherwise required of managers, officers and directors of corporate pawnbrokers.

(d)

The applicant or license holder shall pay a fee for amendment of the application as provided in Section 18-3-2. The new manager shall be photographed, fingerprinted and investigated as required in Section 18-3-9. Failure of applicant to request an amendment of the application or failure to meet the prescribed standards and qualifications of Section 18-3-9 shall constitute grounds for revocation, suspension or non-renewal of the license.

[Source: Ord. 1131, 1995]

Section 18-3-13. Required Acts of Pawnbrokers.

(a)

A pawnbroker shall keep a numerical register in which shall be recorded the following information:

(1)

The name, address, and date of birth of the customer;

(2)

The customer's driver's license number or other identification number from any other form of identification which is allowed for sale of valuable articles pursuant to Section 18-16-103, C.R.S., or for the sake of secondhand property pursuant to Section 18-13-114, C.R.S.;

(3)

The date, time and place of the contract for purchase or purchase transaction; and

(4)

An accurate and detailed account and description of each item of tangible personal property, including, but not limited to, any trademark, identification number, serial number, model number, brand name, or other identifying marks on such property.

(5)

The pawnbroker shall also obtain a written declaration of the customer's ownership which shall state that the tangible personal property is totally owned by the customer, or shall have attached to such declaration a power of sale from the partial owner to the customer, how long the customer has owned the property, whether the customer or someone else found the property and, if the property was found, the details of the finding including the name, address and telephone number of the finding party.

(b)

If the contract for purchase or other purchase transaction involves more than one item, each item shall be recorded on the pawnbroker's register and on the customer's declaration of ownership.

(c)

The customer shall sign his or her name in such register and on the declaration of ownership and receive a copy of the contract of purchase or a receipt for the purchase transaction.

(d)

Such register shall be made available to any local law enforcement agency for inspection at any reasonable time.

(e)

The pawnbroker shall keep each register for at least three (3) years after the date of the last transaction entered in the register.

(f)

A pawnbroker shall hold all contracted goods within his or her jurisdiction for a period of ten (10) days following the maturity date of the contract for purchase, during which time such goods shall be held separate and apart from any other tangible personal property, and shall not be changed in form or altered in any way.

(g)

A pawnbroker shall hold all property purchased by him or her through a purchase transaction for thirty (30) days following the date of purchase, during which time such property shall be held separate and apart from any other tangible personal property, and shall not be changed in form or altered in any way.

(h)

Every pawnbroker shall provide the local law enforcement agency, on a weekly basis, with two (2) copies of the records, on a form to be provided or approved by the local law enforcement agency, of all tangible personal property accepted during the preceding week. The form shall contain the same information required to be recorded in the pawnbroker's register pursuant to subsection (a) of this Section. The local law enforcement agency shall designate the day of the week on which the records and declarations shall be submitted.

(i)

Every pawnbroker shall clear, through the Northglenn Police Department, prior to release, all firearms, other than those which are newly manufactured and which have not been previously sold at retail.

(j)

Every pawnbroker shall pay to the City a fee of sixty cents ($0.60) for every transaction form. The Chief of Police is granted the authority to reduce the $ .60 per transaction form fee for any cost saving measures which are implemented by the City of Northglenn and which are developed at the sole expense of a pawnbroking business duly licensed in the City of Northglenn. The decision to implement cost saving measures related to the transaction form is in the sole discretion of the Chief of Police. It is the intent of this subsection to encourage pawnbroking business in the City of Northglenn to identify and/or develop measures to reduce the amount of time or expense incurred by the City of Northglenn in processing information which is required by the State of Colorado or by this Article.

(k)

Every pawnbroker shall, at his or her expense, keep records or provide reports in such manner and by such methods as may be determined from time to time by the Northglenn Police Department or the City Clerk.

(l)

Every pawnbroker shall videotape all transactions, including those which do not result in a contract for purchase or purchase transaction. Any such videotapes shall be kept by the pawnbroker for a minimum of sixty (60) days and shall be subject to police review.

(m)

Pawnbrokers shall accept intermediate payments, without penalty, upon contracts for purchase which have not yet matured when presented with the pawn ticket, and shall treat the amount tendered as a payment upon the existing contract for purchase. A receipt showing the date of the payment and the amount shall be given to the customer for all monies received on account of or in payment of loans made under a contract for purchase. The total amount of money presented shall be applied against the amount of indebtedness. In no event shall late charges, collection fees or other such service charges be deducted from the amount of the payment tendered to the pawnbroker.

(n)

If the customer fails or neglects to redeem such property upon the maturity of the contract for purchase by repayment of the balance of the principal and payment of all accrued interest charges, the pawnbroker shall immediately, upon the maturity of the contract for purchase, mail with sufficient postage a notice of the impending sale of the property delivered under the contract. Such notice shall be mailed to the customer at the address shown on the contract for purchase pertaining to the transaction. Ten (10) days shall be allowed from the date of mailing of the notification or the customer to appear and reclaim the property or make satisfactory payments upon it. The pawnbroker shall not sell or otherwise dispose of the property prior to the expiration of the ten-day period.

[Source: Ord. 1311, 1995; 1203, 1998]

Section 18-3-14. Prohibited Acts.

(a)

No pawnbroker, employee, or agent of the pawnbroker shall enter into a contract for purchase or purchase transaction with any person under the age of eighteen (18) years or with any person under the influence of alcoholic beverages or drugs.

(b)

No pawnbroker, employee, or agent of the pawnbroker shall enter into a contract for purchase or purchase transaction with any person known to that employee or agent to be a thief or to have been convicted of larceny or burglary, without first notifying the Northglenn Police Department. Such notice shall not be deemed as authorization by the City for the pawnbroker to enter into any contract with such person.

(c)

With respect to a contract for purchase, no pawnbroker, employee, or agent of a pawnbroker may permit any customer to become obligated on the same day in any way under more than one contract for purchase agreement with the pawnbroker which would result in the pawnbroker obtaining a greater amount of money than would be permitted if the pawnbroker and customer had entered into only one contract for purchase covering the same tangible personal property.

(d)

No pawnbroker, employee, or agent of the pawnbroker shall violate the terms of the contract for purchase.

(e)

No pawnbroker, employee, or agent of the pawnbroker shall enter into a contract for purchase or purchase transaction for any tangible personal property wherein the identification number, serial number, model number, brand name, owner's identification number or other identifying marks on such property have been totally or partially obscured.

(f)

No pawnbroker, employee, or agent of the pawnbroker shall enter into a contract for purchase or purchase transaction when the property, which is the subject of the contract for purchase or purchase transaction, is other than tangible property.

(g)

No pawnbroker, employee, or agent of the pawnbroker shall ask, demand or receive any greater rate of interest, commission and compensation than the total rate of one-tenth (1/10th) of the original purchase price for each month, plus the original purchase price, on amounts of fifty dollars ($50.00) or over, or one-fifth (1/5th) of the original purchase price for each month, plus the original purchase price for each month, plus the original purchase price, on amounts under fifty dollars ($50.00). No other charges shall be made by the pawnbroker upon renewal of any contract for purchase or at any other time. In the event any such charges are made, the contract shall be void. Any contract for the payment of commissions by the customer for making a contract for purchase of tangible personal property shall be null and void.

The violation of the Section by an agent, or employee of a pawnbroker shall be deemed to be a violation of this Section by the pawnbroker.

(h)

No license nor any principal, employee, agent or servant of such licensee shall engage in a purchase transaction or shall enter into a contract for purchase transaction with any customer without securing one of the following kinds of then current and valid identification:

(1)

A Colorado driver's license;

(2)

Identification card issued in accordance with Section 42-2-402, C.R.S., which is an identification card issued by the State of Colorado;

(3)

A valid driver's license containing a picture, issued by another state;

(4)

A military identification card;

(5)

A valid passport;

(6)

An alien registration card; or

(7)

A non-picture identification document issued by a state or federal government entity, if the pawnbroker also obtains a clear imprint of the customer's right index finger.

(i)

It shall be unlawful for any customer to knowingly give false information with respect to the information required by Section 18-3-13 of this Code.

[Source: Ord. 1131, 1995; 1203, 1998]

Section 18-3-15. Hold Orders and Surrender of Property.

(a)

Any police officer may order a pawnbroker to hold any tangible personal property deposited with or in the custody of any pawnbroker for purposes of further investigation. A hold order shall be effective upon verbal notification to the pawnbroker by a police officer. No sale or other imposition may be made of such property held by any pawnbroker while the hold order remains outstanding. A hold order shall supersede all other provisions of this Section, and any sale or other disposition of the property after the pawnbroker has been notified by a police officer of a hold order shall be unlawful and a violation of this Section.

(b)

If any police officer determines that any article of personal property held by a pawnbroker is stolen or illegally obtained property, such officer may immediately confiscate such property and must provide the pawnbroker with a receipt, and case report number.

[Source: Ord. 1131, 1995]

Section 18-3-16. Liability of Pawnbroker.

(a)

A pawnbroker who accepts any article in a purchase or contract of purchase transaction from a customer who is not the owner thereof obtains no title in the article either by reason of the expiration of the contract or by transfer of the receipt to the pawnbroker by the customer or holder thereof. Ignorance of the fact that the article was lost or stolen shall not be construed to effect the question of the title. If the pawnbroker shall sell such article to a third person, the pawnbroker shall recover the article or reimburse the fair market value of the article. The lawful owner may, upon proof of his or her ownership of the article lost or stolen, claim the same from the pawnbroker or recover the same by the appropriate legal means including, without limitation, forfeiture of the fair market value of such article out of the bond required by Section 18-3-16.

(b)

A pawnbroker shall be liable for the loss of tangible personal property or part thereof or for damages thereto, whether caused by fire, theft, burglary or otherwise, resulting from his or her failure to exercise reasonable care in regard to it.

[Source: Ord. 1131, 1995]

Section 18-3-17. Hours of Pawnbrokers. It shall be unlawful for any pawnbroker to operate during the following hours and on the following days:

(1)

After 9:00 p.m. and before 8:00 a.m.

(2)

On Sunday.

(3)

On January 1, commonly called New Year's Day; on the last Monday of May, commonly called Memorial Day; on July 4, commonly called Independence Day; on the first Monday of September, commonly called Labor Day; on Thanksgiving Day; and on December 25, Christmas Day.

[Source: Ord. 1131, 1995; 1203, 1998]

Section 18-3-18. Penalties. Any person who violates any provision under Article 3 of Chapter 18 of this Code shall be punished as provided in Section 1-1-10 (a) (2) of this Code.

[Source: Ord. 1203, 1998]