CITY OF COON RAPIDS MINNESOTA SECONDHAND

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					                            CITY OF COON RAPIDS, MINNESOTA

                                        CHAPTER 5-2600

          SECONDHAND DEALERS, ANTIQUE DEALERS, AND EXHIBITIONS

      5-2601 Purpose. The City Council finds that the use of services provided by secondhand
dealers and antique dealers provides an opportunity for the commission of crimes and their
concealment because secondhand businesses have the ability to receive and transfer property
stolen by others easily and quickly. The City Council also finds that consumer protection
regulation is warranted in transactions involving secondhand and antique dealers. The City
Council further finds that the secondhand and antique industries have outgrown the City’s
current ability to effectively or efficiently identify criminal activity related to these businesses.
The purpose of this ordinance is to prevent secondhand and antique businesses from being used
as facilities for the commission of crimes and to assure that such businesses comply with basic
consumer protection standards, thereby protecting the public health, safety, and general welfare
of the citizens of the City.

      To help the Police Department better regulate current and future secondhand and antique
businesses, decrease and stabilize costs associated with the regulation of the secondhand and
antique industries, and increase identification of criminal activities in the secondhand and
antique industries through the timely collection and sharing of transaction information, this
ordinance also implements and establishes the required use of the Automated Pawn/Secondhand
System (“APS”).

       5-2602 Definitions. The following words and terms when used in this Chapter shall have
the following meanings unless the context clearly indicates otherwise:
       (1) Antique. Any used property offered for sale on the basis, express or implied, that the
value of the property, in whole or in substantial part is derived from its age or its historical
association and exceeds the original value of the item when new.
       (2) Antique Dealer. Any natural person, partnership, or corporation, either as principal or
agent or employee thereof, whose regular business includes selling or receiving goods previously
owned, used, rented or leased, and where at least 90 percent measured according to value, of the
used goods on hand at all times, consists of antiques, offered for sale upon the basis, express or
implied, that the value of the property, in whole or in substantial part, is derived from its age or
its historical association and exceeds the original value of the item when new. For purposes of
this article, antique dealer shall include antique mall operator and antique mall dealer unless
otherwise delineated.
       (3) Antique Mall Dealer. An antique dealer who leases space from or conducts business
at a location licensed by an antique mall operator.
       (4) Antique Mall Operator. Any natural person, partnership, or corporation, either as
principal or agent thereof who operates a business at which one or more antique mall dealers are
engaged in business by maintaining separate sales space and identifying themselves to the public
as an individual antique dealers, and where all of the following requirements are met:
             (a) the business has a single name and address.
             (b) the business operates in a compact and contiguous space.
             (c) the business is under the unified control and supervision of one person,
       partnership, firm, or corporation, which shall hold the antique mall license.
             (d) all sales are consummated at a central point or register operated by the antique

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      mall operator and the antique mall operator maintains a comprehensive account of all sales.
            (e) each antique mall dealer operating at the antique mall operator’s location is
      properly licensed and complies with all applicable requirements of this article.
            (f) the antique mall operator maintains a complete and accurate file of the current and
      valid licenses issued to each of the antique mall dealers conducting business at that
      location.
            (g) individuals, partnerships, corporations that are a part of the business entity
      licensed as the antique mall operator, and who maintain separate sales space, or identify
      themselves to the public as an individual antique dealer at that location, are also
      individually licensed as antique mall dealers.
      (5) Auction House Dealer. Any secondhand dealer where some, or all, of the secondhand
merchandise is offered for sale for the highest bid or offer tendered. If the sale is conducted by
means of an auction, the auctioneer must be properly licensed and bonded in accordance with
applicable laws.
      (6) Billable Transaction. Every reportable transaction conducted by a secondhand or
antique dealer regardless of the number of items received in that transaction.
      (7) Business Manager. A person or persons designated by the licensee to operate a
business in the licensee’s absence. A licensee must designate a manager to operate the licensed
business if the licensee does not personally provide on-site supervisory services at the businesses
at least 64 hours per month.
      (8) Consignment. A written agreement between a dealer and a seller that enables the
dealer to take temporary possession of secondhand property, owned by the seller, for the purpose
of offering it for sale to the public and the dealer is compensated after the sale by receiving a
portion of the sale. The agreement shall state the terms under which the seller will be
compensated, and the amount of that compensation.[Revised 8/21/07, Ordinance 1955]
      (9) Dealer. Any person, partnership, or corporation, either as principal or agent or
employee thereof licensed under this Chapter.
      (10) Dispose. To sell, broker, or give in trade for an item of equal or greater value any
tangible personal property previously owned, used, rented, or leased, however received.
      (11) Exhibition. A temporary exhibition, convention, show, or exposition of secondhand
goods by any person, partnership, or corporation or association. No exhibition shall be held for
more than five consecutive calendar days.
      (12) Exhibition Operator. Any natural person, partnership, corporation or association,
either as principal or agent or employee thereof who organizes, promotes or conducts an
exhibition.
      (13) Exhibitor. Any natural person, partnership, corporation or association, either as
principal or agent or employee thereof, who offers used or previously owned merchandise for
sale at an exhibition.
      (14) Issuing Authority. The City of Coon Rapids.
      (15) Minor. Any natural person under the age of eighteen years.
      (16) Online Auction Dealer. Any secondhand dealer where some, or all, of the
secondhand merchandise is hosted for sale on an electronic or online auction.[Revised 8/21/07,
Ordinance 1955]
      (17) Person. Any one or more natural persons; a partnership, including a limited
partnership; a corporation, including a foreign, domestic or non-profit corporation; a trust; a
political subdivision of the state; or any other business organization.
      (18) Precious Gems. Any gem that is valued for its character, rarity, beauty, or quality,
including diamonds, rubies, emeralds, sapphires, or pearls, or any other precious gems or stones,
whether as a separate item or in combination as piece of jewelry or other crafted item.

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      (19) Precious Metals. Gold, silver, platinum, titanium, and sterling silver, whether as a
separate item or in combination as piece of jewelry or other crafted item, except items plated
with precious metal or metals and the plating equals less than one percent of the item’s total
weight. [Revised 8/21/07, Ordinance 1955]
      (20) Receive. To purchase, accept for sale on consignment, broker or receive in trade for
an item of equal or lesser value, any tangible personal property previously owned, used, rented,
or leased.
      (21) Reportable Transaction. Each item received by a secondhand or antique dealer inside
the City of Coon Rapids, which is merchandise defined under Section 5-2617 and for which a
daily report to the Police Department is required. Each such item received shall constitute a
separate reportable transaction notwithstanding that the items may have been received from the
same customer at the same time.
      (22) Secondhand Dealer. Any natural person, partnership, or corporation, either as
principle or agent or employee thereof whose regular business includes selling or receiving
tangible personal properties, excluding motor vehicles, previously owned, used, rented, or
leased. The term secondhand dealer shall include auction house dealers and online auction
dealers. [Revised 8/21/07, Ordinance 1955]
      (23) Transaction. Every activity by which a secondhand or antique dealer receives or
disposes of property. Each receipt or disposal of property from or to the same customer at the
same time shall constitute a single transaction regardless of the number of items involved,
provided, however, that the receipt of items from and the disposal of items to the same customer
at the same time shall constitute separate transactions.
      (24) Unique Identifier. A serial number, identification number, model number, owner
applied identifier or engraving, or “Operation I.D.” number or symbol.

      5-2603 License Required. No person shall engage in the business of secondhand dealer or
antique dealer without obtaining a license pursuant to this Chapter. No license issued hereunder
may be transferred to a different location or a different person. Licenses shall be conspicuously
displayed. Issuance of a license under this Chapter shall not relieve the dealer from obtaining
any other licenses required to conduct businesses at the same or any other locations.
Notwithstanding any provisions of this Chapter to the contrary, antique dealers may receive
reportable property at a private residence or other private location, providing they fulfill all
applicable requirements in this Chapter.

      5-2604 Exceptions. The following transactions shall not require a license under this
Chapter:
      (1) The sale of secondhand goods at events commonly known as garage sales, yard sales
or estate sales where all of the following are present:
            (a) the sale is held on property occupied as a dwelling by the seller or owned, rented,
      or leased by a charitable or political organization.
            (b) the occupant owns the items offered for sale and that none of the items offered for
      sale have been purchased for resale or received on consignment for purpose of resale.
            (c) the owner of the property conducts the sale and receives all proceeds from the
      sale.
            (d) that no sale exceeds a period of four consecutive days.
      (2) The sale or receipt of secondhand books, magazines, postcards, postage stamps, or
philatelic material.
      (3) Goods sold at an exhibition pursuant to this Chapter.
      (4) Transactions conducted by a licensed precious metal dealer.
      (5) Transactions conducted by a licensed pawnbroker.
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      5-2605 License Classifications.
      (1) Licenses renewed under provisions of this Article shall be classified first according to
the number of transactions submitted annually to the Police Department during the twelve month
period ending thirty days prior to the renewal date, and then by the type of license.
Classifications shall be:
            (a) Class A: Secondhand or antique dealers that engage in 400 or more reportable
      transactions.
            (b) Class B: Secondhand or antique dealers that engage in more than 60 but fewer
      than 400 reportable transactions.
            (c) Class C: Secondhand or antique dealers that engage in 60 or fewer reportable
      transactions.
      (2) All new licenses issued pursuant to this Chapter shall be deemed to be Class A
licenses unless applicant’s business plan clearly indicates the business will conduct fewer than
400 reportable transactions in a consecutive twelve month period.
      (3) All new Class B licenses issued pursuant to this Chapter shall be monitored by the
Issuing Authority and upgraded to a Class A license whenever 400 or more reportable
transactions are, or should have been, submitted within any 12 month period.

      5-2606 Application Content. In addition to any information that may be required
pursuant to law the application for a license under this Chapter shall be made on a form supplied
by the Issuing Authority and shall contain the following information:
      (1) If the applicant is a natural person:
            (a) the name, place, and date of birth, street residence address, and telephone
      number(s) of the applicant;[Revised 8/21/07, Ordinance 1955]
            (b) whether the applicant is a citizen of the United States or a resident alien;
            (c) whether the applicant has ever used or has been known by a name other than the
      applicant’s name, and if so, the name or names used and information concerning dates and
      places were used;
            (d) the name of the business if it is to be conducted under a designation, name, or
      style other than the name of the applicant, and a copy of the certificate as required by
      Minnesota Statutes, Section 333.01;
            (e) the street addresses at which the applicant has lived during the preceding five
      years;
            (f) the type, name and location of every business or occupation in which the
      applicant has been engaged during the preceding five years and the name(s) and address(es)
      of the applicant’s employer(s) and partner(s), if any, for the preceding five years;
            (g) whether the applicant has ever been convicted of a felony, crime, or violation of
      any ordinance other than a traffic ordinance, and if so, the applicant shall furnish
      information as to the time, place, and offense for which convictions were had;
            (h) if the applicant is married:
                (i) the name, place, and date of birth, and street address of the applicant’s
            current spouse;
                (ii) the type, name, and location of every business or occupation in which the
            applicant’s current spouse has been engaged during the five preceding years;
                (iii) the names and addresses of the employers or partners of the applicant’s
            current spouse for the preceding five years; and
                (iv) whether the applicant’s current spouse has ever been convicted of any felony,
            crime, or violation of any statute or ordinance other than a traffic ordinance, and if so,

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       the applicant shall furnish information as to the time, place and offense for which
       convictions were had.
(2) If the applicant is a partnership:
       (a) the name(s), address(es), and dates of birth of all general and limited partners and
all information concerning each general partner required in subsection (1) of this Section;
       (b) the name(s) of the managing partner(s) and the interest of each partner in the
secondhand business; and
       (c) a true copy of the partnership agreement shall be submitted with the application.
If the partnership is required to file a certificate as to a trade name pursuant to Minnesota
Statutes, Section 333.01, a certified copy of such certificate shall be attached to the
application.
(3) If the applicant is a corporation or other organization:
       (a) the name of the corporation or business firm and if incorporated, the state of
incorporation;
       (b) a true copy of the certificate of incorporation, articles of incorporation or
association agreement and bylaws shall be attached to the application. If the applicant is a
foreign corporation, a certificate of authority as required by Minnesota Statutes, Section
303.06 shall be attached.
       (c) the name of the manager(s), proprietor(s), or other agent(s) in charge of the
business and all information concerning such manager, proprietor, or agent required in
subsection (1) of this Section; and
       (d) a list of all persons who control or own an interest in excess of five percent in
such organization or business form or who are officers of the corporation or business form
and all information concerning said persons required in subsection (1) above.[Revised
8/21/07, Ordinance 1955]
(4) For all applicants:
       (a) whether the applicant holds a current pawnbroker, precious metal dealer, or
secondhand dealer license from any other governmental unit and whether the applicant is
licensed under either Minnesota Statutes, Section 471.924 or Minnesota Statutes, Sections
325F.731 through 325F.744;
       (b) whether the applicant has previously been denied a pawnbroker, precious metal
dealer, or secondhand dealer license from any other governmental unit;
       (c) the names and addresses of three residents of Hennepin, Sherburne, Wright,
Isanti, Ramsey, Anoka, Carver, Dakota, Washington, or Scott County who are of good
moral character and who are not related to the applicant or who do not hold any ownership
in the premises or business, who may be referred to as to the applicant’s and/or manager’s
character;
       (d) the location of the business premises;
       (e) the legal description of the premises to be licensed;
       (f) whether all real estate and personal property taxes that are due and payable for the
premises to be licensed have been paid, and if not paid, the years and amounts that are
unpaid;
       (g) whenever the application is for premises either planned or under construction or
undergoing substantial alteration, the application shall be accompanied by a set of
preliminary plans showing the design of the proposed premises to be licensed. If the plans
or design are on file with the City of Coon Rapids Inspection Division, no plans need to be
submitted with the Issuing Authority; and
       (h) such other information as the Issuing Authority may require.


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     (5)   New Manager.
           (a) Application Required. When a licensee places a manager in charge of a business,
     or if the named manager(s) in charge of a licensed business changes, the licensee must
     complete and submit the appropriate application, on forms provided by the Issuing
     Authority, within 14 days. The application must include all appropriate information
     required in Section 5-2604(1).
           (b) Investigation Fee. The application for a new manager shall be accompanied by an
     investigation fee as established from time to time by ordinance of the City Council.
     [Revised 12/5/06, Ordinance 1938]

      5-2607 Application Execution. All applications for a license under this Chapter shall be
signed and sworn to. If the application is that of a natural person, it shall be signed and sworn to
by such person; if that of a corporation, by an officer thereof; if that of a partnership, by one of
the general partners; and if that of an unincorporated association by the manager or managing
officer thereof. Any falsification on a license application shall result in the denial of a license.

     5-2608 Application Verification. All applications shall be referred to the Police
Department for verification and investigation of the facts set forth in the application. The Police
Department shall make a written report and recommendation to the license issuer as to issuance
or non-issuance of the license. The license issuer may order and conduct such additional
investigation as it deems necessary.

      5-2609 Issuance of License.
      (1) Class A Secondhand Dealer. Within 30 days of submission, the City Council shall
grant or deny a license application for a Class A Secondhand Dealer license. Failure of the
Council to take action within 30 days of submission shall constitute approval of the license.
      (2) Class B Secondhand Dealer. A Class B Secondhand Dealer license shall be issued by
the City Clerk upon a positive recommendation from the Chief of Police. In the event the Chief
of Police recommends denial, the application shall be submitted to the City Council for a
disposition in the same manner as an application for a Class A Secondhand Dealer license.
Failure of the City Clerk to grant the application or submit it to the Council within 30 days after
receipt of the application by the Clerk shall be deemed a granting of the license.
      (3) If an application is granted for a location where a building is under construction or is
not ready for occupancy, the license shall not be delivered to the licensee until a certificate of
occupancy has been issued for the licensed premises.

     5-2610 Expiration of License. All licenses issued under this Chapter shall expire as of
midnight on December 31st of the year of issuance.

      5-2611 Renewal. An application for the renewal of an existing license shall be made to
the City Clerk ay least 30, but not less than 60, days prior to the expiration date of the license and
shall be made on such forms as the Issuing Authority requires. Applications for renewal of a
Class A Secondhand Dealer license shall be submitted by the Clerk to the City Council. Renewal
of a Class B Secondhand Dealer license shall be granted by the City Clerk unless the Clerk, for
good and sufficient cause, determines there are grounds for denial in which case the Clerk shall
submit the renewal application to the City Council.

     5-2612 Fees
     (1) Annual License Fees.
           (a) A Class A or Class B Secondhand Dealer or Antique Dealer shall pay an annual
     license fee as determined from time to time by ordinance of the City Council.[Revised
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     3/1/05, Ordinance 1868]
           (b) A Class C Secondhand Dealer or Antique Dealer shall pay no license fee.
           (c) The annual license fees for new licenses issued after July 1st in any year shall be
     50 percent of the annual fee for the first year of the license. When the license is issued for
     premises where the building is not ready for occupancy, the time fixed for computation of
     the license fee for the initial license year shall be 90 days after approval of the license by
     the Issuing Authority or the date the building is ready for occupancy, whichever is sooner.
           (d) The appropriate license fee shall be submitted with the application for a new or
     renewal license.
           (e) The annual license fee shall be refunded if the application is denied.
     (2) Investigation Fee.
           (a) The investigation fee for an initial Class A or Class B Secondhand Dealer or
     Antique Dealer license or for a change in manager shall be established from time to time by
     ordinance of the City Council.[Revised 3/1/05, Ordinance 1868]
           (b) All investigation fees shall be submitted to the Issuing Authority along with an
     application.
           (c) Investigation fees are not refundable.
     (3) Billable Transaction Fee.
           (a) The billable transaction fee shall be established from time to time by ordinance of
     the City Council.[Revised 3/1/05, Ordinance 1868]
           (b) The fee shall be classified according to the medium by which required daily
     reports are submitted to the Police Department.
           (c) The fee shall reflect the cost of processing transactions from the respective
     classifications and other related regulatory expenses.
           (d) The fee for electronic transactions shall not exceed the fee for manual
     transactions.[Revised 8/21/07, Ordinance 1955]
           (e) The fees shall be billed monthly and are due and payable within 30 days
     thereafter.
           (f) Failure to timely pay the fees shall constitute a violation of this Chapter.

     5-2613 Conditions for Approval.
     (1) No license shall be issued under this Chapter if the applicant or any general partner or
managing partner of a partnership, or any manager, proprietor, or agent in charge of a
corporation or other organization:
           (a) is a minor at the time the application is filed;
           (b) has been convicted of any crime directly related to the occupation licensed as
     prescribed by Minnesota Statutes, Section 364.03, subd. 2 and has not shown competent
     evidence of sufficient rehabilitation and present fitness to perform the duties of a
     secondhand dealer as prescribed by Minnesota Statutes, Section 364.03, subd. 3;
           (c) is not a citizen of the United States or a resident alien;
           (d) is not of good moral character or repute; or
           (e) holds an intoxicating liquor license under this Code.
     (2) The following locations are ineligible for a license under this Chapter:
           (a) No license shall be granted or renewed for operation on any property on which
     taxes, assessments, or other financial claims of the State, County, School District, or City
     are due, delinquent, or unpaid. In the event a suit has been commenced under Minnesota
     Statutes, Sections 278.01 through 278.03, questioning the amount or validity of taxes, the
     City Council may, on request, waive strict compliance with this provision. However, no
     waiver may be granted for taxes or any portion thereof which remain unpaid for a period

                                            5-2600-7
      existing one (1) year after becoming due.
            (b) No license shall be granted or renewed if the property on which the business is to
      be conducted is owned by a person who is ineligible for a license under any of the
      requirements of this Code except that a property owner who is a minor or who has been
      convicted of a crime, other than a crime involving theft or falsehood, shall not make the
      premises ineligible under this subsection.
            (c) Secondhand goods operations may be located only in Neighborhood Commercial,
      Community Commercial, General Commercial, or Office Zoning Districts.
      (3) The licensee, proprietor, or manager of the establishment shall be a resident of
Anoka, Sherburne, Wright, Isanti, Carver, Scott, Hennepin, Ramsey or Washington County. For
good cause, the Issuing Authority may permit a reasonable time for establishing residency in one
of the above named counties.
      (4) A proprietor or manager of the establishment shall be authorized to accept service of
process, civil or criminal, on behalf of the licensee.

      5-2614 Bonds Required.
      (1) Secondhand or Antique Dealer. Before a license will be issued, every applicant must
submit a bond in the amount of $5,000 on forms approved by the Issuing Authority. All bonds
must be conditioned that the principal will observe all laws in relation to secondhand or antique
dealers, and will conduct business in conformity therewith, and that the principal will account for
and deliver to any person legally entitled any goods which have come into the principal’s hand
through the principal’s business as a secondhand or antique dealer, or in lieu thereof, will pay the
reasonable value in money to the person. The bond shall contain a provision that no bond may
be canceled except upon 30 days written notice to the City, which notice shall be served upon the
City Clerk.
      (2) Antique Mall Operators. Before a license will be issued for an antique mall operator,
every applicant must submit a $10,000.00 mall operator bond on forms approved by the City.
All antique mall operator bonds must be conditioned that the operator, and all antique mall
dealers licensed to conduct business at the operator’s location, will observe all laws in relation to
secondhand and antique dealers, will conduct business in conformity thereto, and that the
operator will account for and deliver to any person legally entitled, any goods which have come
into the hands of the operator, or the hands of any of its dealers, through their business as a
secondhand or antique dealer, or in lieu thereof, will pay the reasonable value in money to the
person. The bond shall contain a provision that no bond may be canceled except upon 30 days
written notice to the City, which shall be served upon the City Clerk.
      (3) Antique Mall Dealers. Before a license will be issued for an antique mall dealer, the
City must have in its possession a valid antique mall operator bond issued to the licensed antique
mall operator at the location for which the applicant is applying.

      5-2615 Exempt Transactions.
      (1) Exempt transactions for Secondhand Dealers. The following items, when received or
disposed of by a secondhand dealer, are exempt from the recording and reporting requirements in
this Chapter regardless of the purchase price paid by the dealer, asking price if consigned or
brokered, sale price if sold or value attributed to it if accepted or disposed of in trade:
            (a) The receipt of new or used merchandise from a merchant, manufacturer, or
      wholesaler having an established permanent place of business, and the retail sale of said
      merchandise, provided the secondhand dealer must maintain a record of all such
      transactions which describes each item and must identify such items in a manner which
      relates them to that transaction record. Any identification code used by the dealer must be

                                             5-2600-8
       provided to the Police Department upon request.
             (b) The sale or receipt of used merchandise donated to recognized non-profit
       organizations and for which no compensation is paid.
             (c) The sale or receipt of secondhand household kitchen and laundry appliances.
             (d) The sale or receipt of secondhand furniture, excluding audio, video, and other
       electronic devices.
             (e) The sale or receipt of secondhand cookware, glassware, and eating utensils that do
       not contain precious metals.
             (f) The sale or receipt of secondhand clothing and shoes.
             (g) The sale or receipt of secondhand infant’s, toddler’s, or children’s clothing,
       appliances, furniture, toys, or safety devices, excluding audio, video, gaming consoles,
       portable gaming devices, and other electronic devices. As used in this paragraph the term
       “safety devices” shall include car seats, baby carriers, strollers, buggies, play pens, and
       similar articles.[Revised 8/21/07, Ordinance 1955]
       (2) Exempt transactions for Antique Dealers. The following items when received by an
antique dealer are exempt from recording and reporting requirements in this Chapter, regardless
of the purchase price paid by the dealer, asking price if consigned or brokered, or value attributed
to it if accepted in trade:
             (a) The receipt of new or used merchandise from a merchant, manufacturer or
       wholesaler having an established place of business, and the retail sale of said merchandise,
       provided the antique dealer must maintain a record of all such transactions which describes
       each item, and must identify such items in a manner which relates them to that transaction
       record. Any identification code used by the dealer must be provided to the Police
       Department upon request.
             (b) The sale or receipt of used merchandise donated to recognized non-profit
       organizations and for which no compensation is paid.
             (c) The sale or receipt of secondhand clothing and shoes.

      5-2616 Recordable Activity.
      (1) Records Required. Unless otherwise provided in this Chapter, each individual item
included in any transaction involving a secondhand or antique dealer shall be immediately and
legibly recorded by the dealer using the English language in ink or other indelible medium, in a
book, on forms, or in a computerized record approved by the Police Department under any one
of the following circumstances:
            (a) The item has a unique identifier.
            (b) The item contains precious gems or metals.
            (c) The dealer paid $15.00 or more in cash or merchandise for the item.
            (d) The dealer intends to offer the item for sale or broker the item for $30.00 or more.
            (e) The asking price of a consigned item is $30.00 or more.
      (2) Information Required. Unless otherwise required pursuant to Section 5-2617, every
transaction recorded under this section shall include the following information:
            (a) A complete and accurate description of each item including, but not limited to,
      any trademark, identification number, serial number, model number, brand name or other
      identifying mark on such item;
            (b) The purchase price if acquired, asking price if consigned, sale price if sold, or
      value attributed to the item if received or disposed of by in trade;
            (c) Date, time, and place the item of property was received by the licensee;
            (d) Full name, residence address, telephone number(s), and date of birth of the person
      from whom the property was received or to whom the property was disposed; [Revised

                                             5-2600-9
      8/21/07, Ordinance 1955]
            (e) Identification number and state of issue from any of the following forms of
      identification of the person from whom the item was received or to whom the property was
      disposed:
                (i) current valid Minnesota driver’s license;
                (ii) current valid Minnesota identification card;
                (iii) current photo identification card issued by another state.
      (3) Inspection of Records. The records required hereunder must at all reasonable times
be open to inspection by the Police Department. Data entries shall be retained for at least three
years from the date of transaction.

     5-2617 Daily Reports to Police.
     (1) Reportable transactions for secondhand dealers. Except for items received through
consignment, or for which payment in full is made with a credit or voucher redeemable for
merchandise from the dealer, every secondhand dealer shall report daily to the Police
Department any of the following items received, regardless of the purchase price, asking price if
consigned or brokered, or value attributed to it if accepted in trade:
           (a) Any item with a unique identifier except for which the dealer paid $25.00 or more
     for the item in cash or other consideration, or which item the dealer intends to offer for
     sale, or broker for $50.00 or more.[Revised 7/18/00, Ordinance 1700]
           (b) Items containing precious metals.
           (c) Items containing precious gems.
           (d) Firearms.
           (e) Any of the following items for which the dealer paid $25.00 or more in cash or
     other consideration, or which the dealer intends to offer for sale, or broker, for $50.00 or
     more:
               (i)    electronic audio equipment, including digital audio players[Revised
               8/21/07, Ordinance 1955]
               (ii) electronic video equipment
               (iii) musical instruments
               (iv) photographic and optical equipment, including digital cameras[Revised
               8/21/07, Ordinance 1955]
               (v) electronic office equipment, including personal digital assistants (PDA)
               [Revised 8/21/07, Ordinance 1955]
               (vi) computers, monitors, printers, scanners, and computer hardware
               (vii) cellular telephones and pagers
               (viii) outboard motors, inboard drives, and powered golf carts
               (ix) electric and gas powered yard and garden equipment and tools
               (x) electric, pneumatic, or hydraulic powered construction or mechanics
               equipment or tools.
               (xi) golf clubs
               (xii) snowboards
               (xiii) skis
               (xiv) ski boots
               (xv) hockey goalie pads [Revised 7/18/00, Ordinance1700]
           (f) Bicycles regardless of the purchase price, asking price if consigned or brokered,
     or a value attributable to them if accepted in trade. [Revised 7/18/00, Ordinance 1700]
           (g) Sporting equipment other than that included in (e) and (f) for which the
     secondhand dealer paid $100.00 or more, in cash or other consideration, or which the

                                           5-2600-10
      secondhand dealer intends to offer for sale or broker for $200.00 or more.[Revised 7/18/00,
      Ordinance 1700]
            (h) Architectural elements, lighting fixtures, or lamps that are, or contain, stained,
      etched, leaded, beveled, or art glass, limited to those which the secondhand dealer paid
      $150 or more, in cash or other consideration, or which the secondhand dealer intends to
      offer for sale or broker, for $300 or more.[Revised 7/18/00, Ordinance 1700]
            (i) Artist signed or artist attributed works of art, other than architectural elements,
      lighting fixtures, or lamps, limited to those for which the secondhand dealer paid $250 or
      more in cash or consideration, or which the secondhand dealer intends to offer for sale or
      broker, for $500 or more.[Revised 7/18/00, Ordinance 1700]
      (2) Reportable Transactions for Antique Dealers. Except for items received through
consignment, or for which payment in full was made with a credit or voucher redeemable for
merchandise from the dealer, every dealer shall report daily to the Police Department any of the
following items received, regardless of the purchase price, asking price if consigned or brokered,
or value attributed to it if accepted in trade:
            (a) Any item with a unique identifier except those included in (e) below.
            (b) Any item containing precious metals.
            (c) Any item containing precious gems.
            (d) Firearms.
            (e) Any of the following for which the dealer paid $250 or more, in cash or other
      consideration, or which the dealer intends to offer for sale, or broker for $500 or more:
                (i)     Antique audio or video equipment.
                (ii) Antique musical instruments.
                (iii) Antique photographic and optical equipment
                (iv) Antique sporting equipment
            (f) Architectural elements, lighting fixtures or lamps, that are or contain stained,
      etched, leaded, beveled, or art glass limited to those which the antique dealer paid $150 or
      more, in cash or other consideration, or which the dealer intends to offer for sale, or broker,
      for $300 or more.
            (g) Artist signed or artist attributed works of art other than architectural elements,
      lighting fixtures, or lamps, limited to those for which the dealer paid $250 or more, in cash
      or other consideration, or which the dealer intends to offer for sale or broker, for $500 or
      more.
      (3) Information Required.
            (a) A complete and accurate description of each item including, but not limited to,
      any trademark, identification number, serial number, model number, brand name or other
      identifying mark on such item;
            (b) the purchase price, asking price if consigned, or value attributed to the item if
      accepted in trade, for each item received;
            (c) date, time, and place the item of property was received by the licensee;
            (d) full name, residence address, telephone number(s), and date of birth of the person
      from whom the property was received;[Revised 8/21/07, Ordinance 1955]
            (e) identification number and state of issue from any of the following forms of
      identification of the person from whom the item was received:
                (i)     current valid Minnesota driver’s license;
                (ii) current valid Minnesota identification card;
                (iii) current photo identification card issued by another state.
            (f) the signature of the person identified in the transaction;
            (g) for Class A licensees, a color photograph or color video recording of:

                                             5-2600-11
                (i)    each customer involved in the billable transaction;
                (ii) each item received that does not have a unique serial or identification
            number permanently engraved or affixed;
                (iii) if a photograph is taken it must be at least two inches in length by two
            inches in width and must be maintained in such a manner that the photograph can be
            readily matched and correlated with all other records of the transaction so that they
            relate. Such photographs must be available to the Chief of Police, or the Chief’s
            designee, upon request. The major portion of the photograph must include an
            identifiable front facial close-up of the person from whom the item was received.
            Items photographed must be accurately depicted. The licensee must inform the
            person that he or she is being photographed by displaying a sign of sufficient size in a
            conspicuous place on the premises.
                (iv) if a video photograph is taken, the video camera must zoom in on the
            person from whom the item is received so as to include an identifiable close up of that
            person’s face. Items photographed must be accurately depicted. Video photographs
            must be electronically referenced by time and date so they can be readily matched and
            correlated with all other records of the transaction to which they relate. The licensee
            must inform the person that he or she is being video taped orally and by displaying a
            sign of sufficient size in a conspicuous place on the premises. The licensee must keep
            the exposed video tape for three months unless requested by the Police Department to
            keep the tape longer.
            (h) Digitalized Photographs. Effective 60 days from the date of notification by the
      Police Department, Class A licensees must fulfill the color photograph requirements in
      subdivision (g) above by submitting them as digital images, in a format specified by the
      Issuing Authority, electronically crossed referenced to the reportable transaction with
      which they are associated. Notwithstanding the digital images may be captured from
      required video recordings, this provision does not alter or amend the requirements of
      subdivision (g) above.
            (i) Inspection of Records. The records required hereunder must at all reasonable
      times be open to inspection by the Police Department. Data entries shall be retained for at
      least three years from the date of transaction. Entries of required digital images shall be
      retained a minimum of 90 days.
      (4) Method of Reporting. Secondhand and antique dealers must provide to the Police
Department the information required in writing, on forms approved by the Issuing Authority, for
all reportable transactions. The dealer must display a sign of sufficient size in any conspicuous
place in the premises, so as to inform all patrons that transactions are reported to the Police
Department daily. Effective 60 days from the date the Issuing Authority provides dealers with
computerized records standards, but no sooner than January 1, 1999, dealers must submit every
reportable transaction to the Police Department daily in the following manner:
            (a) Class A dealers must, and Class B dealers may provide the required information
      to the Police Department by transferring it electronically to the Police Department via
      means approved by the Police Department. All required records must be transmitted
      completely and accurately after the close of business each day in accordance with standards
      and procedures established by the Issuing Authority using a dial call back protocol or other
      procedures that address security concerns of the dealers and the Issuing Authority.[Revised
      8/21/07, Ordinance 1955]
            (b) Class B dealers who do not fill the requirements for a Class A license must
      provide the required information to the Coon Rapids Police Department in writing on forms
      provided by the Police Department by 12:00 o’clock noon the first business day following

                                            5-2600-12
      the date of the transaction. Such records may be submitted on an electronic storage device
      provided that the medium is compatible for retrieval of the information by the Police
      Department’s computer system.[Revised 8/21/07, Ordinance 1955]
      (5) Billable Transaction Fees. Licensees, regardless of class, will be charged for billable
transactions at the current rate for the medium by which they were reported to the Police
Department except:
            (a) If a Class A licensee, or a Class B licensee who has consistently reported via
      electronic means is unable to successfully transfer the required reports electronically, the
      licensee must provide the Police Department printed copies of all reportable transactions
      along with the video tape(s) for that date, by 12:00 o’clock noon the next business day, and
      must be charged at the electronic rate for billable transactions.[Revised 8/21/07, Ordinance
      1955]
            (b) If the problem is determined to be the licensee’s system and is not corrected by
      the close of the first business day following the failure, the licensee must provide the
      required reports as detailed in this Section, and must be charged at the electronic rate for
      transactions through the close of the first business day following the failure, and at the
      manual rate for all subsequent billable transactions until the error is corrected; or[Revised
      8/21/07, Ordinance 1955]
            (c) If the problem is determined to be outside the licensee’s system, the licensee must
      provide the required reports in detail in accordance with this Section, and will be billed at
      the electronic rate for billable transactions until the error is corrected.[Revised 8/21/07,
      Ordinance 1955]
            (d) If a Class A licensee, or a Class B licensee who has consistently reported via
      electronic means, is unable to capture, digitalize or transmit the photographs required in
      this Section, the licensee must immediately take all required photographs with a still
      camera, immediately develop the pictures, cross reference the photographs to the correct
      transaction, and deliver them to the Police Department by 12:00 o’clock noon the next
      business day. Billable transactions will be charged at the electronic rate for transactions
      through the close of the first business day following the failure, and at the manual rate
      thereafter for all subsequent billable transactions until the error is corrected.[Revised
      8/21/07, Ordinance 1955]
            (e) Second and subsequent occurrences of circumstances detailed in this Section,
      within any six consecutive months will be charged at the manual rate for billable
      transactions until the error is corrected.
            (f) Notwithstanding the provisions of this Section, the Issuing Authority may, upon
      presentation of extenuating circumstances, extend the period that a qualifying licensee is
      billed at the electronic rate for billable transactions.[Revised 8/21/07, Ordinance 1955]

      5-2618 Receipt Required. Every secondhand and antique dealer must provide a receipt,
upon request, to any person from whom they receive goods for which a record is required by this
Chapter, and must maintain a duplicate of that receipt for three years. The receipt must include
sufficient information to enable the Police Department to identify the transaction, and every item
related to it in the dealer’s records.

      5-2619 Payment. When a secondhand or antique dealer buys or otherwise receives any
item, payment shall be made by check, made payable to a named payee who is the actual and
identified seller or by store credit. The name of the payee and other information pertinent to the
purchase shall be referenced in the transaction data.[Revised 10/20/09, Ordinance 2022]


                                            5-2600-13
      5-2620 Holding Period. Any item received by a secondhand or antique dealer, for which
a report to the police is required by this Chapter, shall not be sold or otherwise transferred for 30
days after the date the police receive such report. A secondhand dealer or antique dealer may
reduce the holding period to 15 days by posting a bond in the amount of $50,000 to protect the
interests of crime victims and the City. In the event an item is sold or otherwise transferred in
less than 30 days and the Police Department, after reasonable investigation, determines the item
is unrecoverable, the secondhand dealer or antique dealer shall immediately reimburse the crime
victim for the replacement value or sale amount, whichever is greater, of the item or the City
may draw on the bond for this purpose. The bond must be maintained in the amount of $50,000
and cannot be canceled or allowed to lapse without first providing the City with at least 30 days
notice. This bond is in addition to the bond required under Section 5-2614(1) and (2). Items
may not be altered, modified, or changed in any way during the holding period.[Revised 8/21/07,
Ordinance 1955]

      5-2621 Police Order to Hold Property.
      (1) Investigative Hold. Whenever a law enforcement official from any agency notifies a
licensee not to sell an item, the item must not be sold or removed from the premises. The
investigative hold shall be confirmed in writing by the originating agency within 72 hours and
will remain in effect for 15 days from the date of the initial notification, or until the investigative
order is canceled, or until an order to hold/confiscated is issued, pursuant to Section 5-2622(2) or
(3) whichever comes first.
      (2) Order to Hold. Whenever the Chief of Police, or the Chief’s designee, notifies a
licensee not to sell an item, the item must not be sold or removed from the licensed premises
until authorized to be released by the Chief or the Chief’s designee. The order to hold shall
expire 90 days from the date it is placed unless the Chief or the Chief’s designee determines the
hold is still necessary and notifies the licensee in writing.
      (3) Order to Confiscate. If an item is identified as stolen or evidence in a criminal case,
the Chief or the Chief’s designee may:
             (a) physically confiscate and remove the item from the licensed premises or approved
      off-site storage, pursuant to a written order from the Chief or the Chief’s designee, or
      [Revised 8/21/07, Ordinance 1955]
             (b) place the item on hold or extend the hold as provided in Section 5-2622(2), and
      leave the item in the licensed premises or approved off-site storage.[Revised 8/21/07,
      Ordinance 1955]
      When an item is confiscated, the person doing so shall provide identification upon request
of the licensee and shall provide the licensee the name and telephone number of the confiscating
agency and investigator, and the case number related to the confiscation. When an order to
hold/confiscate is no longer necessary, the Chief of Police or the Chief’s designee, shall so notify
the licensee.

      5-2622 Inspection of Items. The secondhand dealer shall, at all times during the term of
the license, allow the Coon Rapids Police Department and other law enforcement authorities
associated with the Coon Rapids Police Department to enter the premises where the secondhand
dealer business is located during normal business hours for the purpose of inspecting such
premises and inspecting the items, ware and merchandise, and records therein for the purpose of
locating items suspected or alleged to have been stolen or otherwise disposed of improperly.
[Revised 8/21/07, Ordinance 1955]



                                             5-2600-14
      5-2623 Label Required. Dealers must attach a label to every item at the time it is
received in inventory from any reportable transaction. Permanently recorded on this label must
be the name or name that identifies the transaction in the business records, the transaction date,
the name of the item, and the description or model and serial number of the item as reported to
the Police Department, whichever is applicable, and the date the item can be sold, if applicable.
Labels shall not be reused.

      5-2624 Hours of Operation.        No secondhand or antique dealer shall keep the
establishment open for the transaction of business on any day of the week before 7:00 a.m. or
after 10:00 p.m.

      5-2625 Prohibited Acts. The following acts are prohibited under this Chapter.
      (1) No person under the age of 18 years may sell or consign, or attempt to sell or consign,
any goods with any secondhand or antique dealer or may any such dealer receive any goods from
a person under the age of 18 years.
      (2) No dealer may receive any goods from a person of unsound mind or an intoxicated
person.
      (3) No dealer may receive any goods unless the seller presents one of the following forms
of identification:
            (a) Current valid Minnesota driver’s license
            (b) Current valid Minnesota identification card
            (c) Current valid photo driver’s license or photo identification card issued by another
      state or province of Canada.
      (4) No dealer may receive any item of property that possesses an altered or obliterated
serial number or operation identification number, or any item of property that has had its serial
number removed.

      5-2626 Denial, Suspension, or Revocation. In addition to any other penalties that may be
lawfully imposed, any license under this Chapter may be denied, suspended, or revoked for one
or more of the following reasons:
      (1) The proposed use does not comply with the City of Coon Rapids zoning code.
      (2) The proposed use does not comply with any health, building, building maintenance or
other provisions of State or local laws or ordinances.
      (3) The applicant or licensee has violated any State or local law relating to moral
character and repute.
      (4) The applicant or licensee has failed to comply with one or more provisions of this
Chapter.
      (5) The applicant is not a citizen of the United States or a resident alien, or upon whom it
is impractical or impossible to conduct a background or financial investigation due to the
unavailability of information.
      (6) Fraud, misrepresentation, or bribery in securing or renewing a license.
      (7) Fraud, misrepresentation or false statements made in the application and investigation
for, or in the course of, the applicant’s business.
      (8) The applicant or licensee has within the preceding five years been convicted of any
law relating to theft, damage or trespass to property, sale of a controlled substance, or operation
of a secondhand business.[Revised 8/21/07, Ordinance 1955]
      (9) The owner of the premises licensed or proposed to be licensed would not qualify for a
license under the terms of this Chapter.


                                            5-2600-15
       5-2627 Off Site Storage. A license under this Chapter authorizes the dealer to carry on its
business only at the permanent place of business designated in the license. However, upon
written request, the Police Department may approve an off site locked and secured storage
facility. The licensee shall permit inspection of that facility. All provisions of this Chapter,
regarding record keeping and reporting apply to the facility and its contents. Property shall be
stored in compliance with all provisions of the Coon Rapids City Code. The dealer must either
own the building in which the business is conducted and any approved off site storage facility or
have a lease on the business premises or storage facility which extends for more than six months.

      5-2628 Exhibitions.
      (1) Permit Required.
            (a) No person, partnership, corporation, or association shall hold an exhibition
      without first obtaining an exhibition operator permit. No person, partnership, corporation
      or association shall sell, or offer for sale, used or previously owned merchandise, at an
      exhibition, without first obtaining an exhibitor permit. Applications for exhibitor permits
      will not be accepted prior to receipt of the application from the exhibition operator.
      Exhibition operator and exhibitor permits shall only be valid for the dates and location of a
      single, specific exhibition, and for a maximum of five consecutive days.
            (b) Exhibitors shall post their permit in a conspicuous manner in their display or sales
      area of the exhibition, and shall maintain such posting for the duration of the exhibition.
            (c) Exhibition operator and exhibitor permits shall be reviewed and approved or
      denied by the City Clerk.
      (2) Exceptions. The following transactions shall not require a permit under this Article:
            (a) The sale or receipt of used merchandise donated to a recognized non-profit
      organization and for which no compensation is paid.
            (b) The sale of secondhand books, magazines or postage stamps.
            (c) The sale of used motor vehicles by licensed dealers.
      (3) Permit Fees. The permit fees for an exhibition operator and an exhibitor shall be
established from time to time by ordinance of the City Council.[Revised 12/05/06, Ordinance
1938]
      (4) Application Contents. Every applicant for a permit defined in this Section must
submit a complete and accurate application on forms provided by the Issuing Authority. All
applicants, in addition to a general, personal and penal history shall be required to submit
adequate information to enable a fair determination of their eligibility to hold the permit for
which they are applying, including:
            (a) The location of the proposed exhibition.
            (b) The dates and hours of the exhibition.
            (c) Whether the applicant holds a current secondhand dealer, precious metal dealer,
      antique dealer, or pawnbroker license from this or any other governmental unit.
            (d) Whether the applicant has previously been denied, or had revoked or suspended, a
      secondhand dealer, precious metal dealer, antique dealer, pawnbroker license or exhibition
      license or permit from this or any other governmental unit.
            (e) The location at which the applicant’s business records are maintained.
            (f) An executed data privacy advisory and consent form authorizing the release of
      criminal history information.
            (g) Applicants for exhibition operator permits must include a complete list of all
      exhibitors known to them at the time they are making the application.
            (h) Conviction within the preceding five years of any law relating to theft, damage or
      trespass to property, sale of a controlled substance, or operation of a business.
            (i) Such other information as the Issuing Authority may require.


                                            5-2600-16
      (5) Application Execution. All applications for a permit under this Section must be
signed and sworn to under oath or affirmation by the applicant. If the application is that of a
natural person, it must be signed and sworn to by such person; if that of a corporation, by an
officer thereof; if that of a partnership, by one of the general partners; and if that of an
unincorporated association, by the manager or managing officer thereof.
      (6) Investigation. The Police Department shall investigate into the truthfulness of the
statements set forth in the application and shall endorse the findings thereon. The applicant must
furnish to the Police Department such evidence as the investigating officer may reasonably
require in support of the statements set forth in the application, or in answer to any questions
raised by the investigation.
      (7) Bond Required.
            (a) Exhibition Operator. Before a permit will be issued for an exhibition operator,
      every applicant must submit a $10,000 Exhibition Operator Bond on forms approved by the
      Issuing Authority. All Exhibition Operator Bonds must be conditioned that the operator,
      and all exhibitors permitted to conduct business at the exhibition, will observe all laws in
      relation to exhibition operators and exhibitors, who will conduct business in conformity
      thereto, and that the operator will account for and deliver to any person legally entitled, any
      goods which have come into the hands of the operator, or the hands of any of its exhibitors,
      through their business as an exhibition operator or exhibitor, or in lieu thereof, will pay the
      reasonable value in money to the person. The bond shall contain a provision that no bond
      may be canceled except upon 30 days written notice to the Issuing Authority, which shall
      be served upon the City Clerk.
            (b) The Exhibitor. Before a permit will be issued for an exhibitor, the City Clerk
      must have in the Clerk’s possession a valid Exhibition Operator Bond issued to the
      exhibition operator permitted at the location for which the applicant is applying.
      (8) Records Required. Every exhibitor at an exhibition shall maintain a permanent
record of the following information for all goods exhibited:
            (a) An accurate description of the item; including, but not limited to, any trademark,
      identification number, serial number, model number, brand name, or other identifying mark
      on such item.
            (b) Purchase price.
            (c) Date, time, and place of receipt.
            (d) Name and residence address of the person from whom the item was received.
      The records required under this sub-section shall be made available upon request by the
Police Department. Entries shall be maintained for at least three years.
      (9) Prohibited Acts. No exhibitor may purchase or otherwise receive any secondhand
goods item at an exhibition except from another permitted exhibitor at the exhibition.
      (10) Police Order to Hold Property. Whenever the Chief of Police, or the Chief’s
designee, notifies an exhibition operator or exhibitor not to sell an item, the item shall not be sold
or removed from the exhibition. The Chief of Police, or the Chief’s designee, shall confiscate or
release the item prior to the close of the exhibition.
      (11) Denial, Suspension, or Revocation. Any permit under this Section may be denied,
suspended or revoked for one or more of the following reasons:
            (a) The proposed use does not comply with the Coon Rapids zoning code.
            (b) The proposed use does not comply with any health, building, building
      maintenance or other provisions of the Coon Rapids City Code or state law.
            (c) The applicant, exhibition operator, or exhibitor has failed to comply with one or
      more provisions of this Section.


                                             5-2600-17
           (d) The applicant is not a citizen of the United States or a resident alien or upon
     whom it is impractical or impossible to conduct a background or financial investigation due
     to the unavailability of information.
           (e) Fraud, misrepresentation, or bribery in securing or renewing a license.
           (f) Fraud, misrepresentation, or false statements made in the application and
     investigation for or in the course of the applicant’s business.
           (g) Business practices, or conduct, deemed by the Issuing Authority to be contrary to
     the best interest or safety of the public.
           (h) Conviction within the preceding five years of any law relating to theft, damage or
     trespass to property, sale of a controlled substance, or operation of a business.[Revised
     8/21/07, Ordinance 1955]
           (i) The owner of the premises where the exhibition is planned would not qualify for a
     license under the terms of this Section.

      5-2629 Penalties. In addition to other sanctions that may be imposed against a license or
licensee under this Chapter, any violation of this Chapter is a misdemeanor.

      5-2630 Severability. If any section or portion of any section of this Chapter is deemed
invalid or unconstitutional by a court of competent jurisdiction, such invalidity or
unconstitutionality shall not affect the validity of other sections or portions of sections of this
Chapter.




                                            5-2600-18

				
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