Sec. 355.04. - Regulations.
(a) Reportable transactions. Except for items received through consignment, or for which payment is made with a credit or voucher redeemable for merchandise from the dealer, every dealer shall record a transaction in which one or more of the following items is received, regardless of the purchase price or selling price, and shall report the same as set forth in § 355.04(e):
(1) Any item with a unique identifier.
(2) Items containing precious metals.
(3) Items containing precious or semi-precious gems.
(4) Firearms.
(5) Any of the following items for which the dealer paid twenty-five dollars or more:
a. Electronic audio or video equipment.
b. Musical instruments.
c. Photographic and optical equipment.
d. Electronic office equipment.
e. Computers, monitors, printers, scanners, computer hardware and computer software.
f. Cellular telephones and pagers.
g. Outboard motors, inboard drives, and powered golf carts.
h. Electric and gas powered yard or garden equipment and tools.
i. Electric, pneumatic or hydraulic powered construction or mechanic's equipment or tools.
(6) Skis, ski boots, bicycles, golf clubs, snow boards, and hockey goalie pads or any other sporting equipment for which the dealer paid fifty dollars ($50.00) or more.
(7) Architectural elements, lighting fixtures or lamps which contain stained, etched, leaded, beveled or art glass for which the dealer has paid more than one hundred dollars ($100.00).
(8) Artwork for which the dealer paid more than one hundred fifty dollars ($150.00).
(b) Records. Any reportable transaction shall be recorded on a standard three-part form furnished by the city police department, hereafter referred to as a purchase form. One (1) copy shall be maintained at the place of business. The other two (2) shall be delivered to the city police department according to section 355.04(e) of the Legislative Code. All purchase forms shall be completed, legibly written in ink in the English language, at the time any purchase is made, and will include the following information:
(1) The date and time that all such purchases are made.
(2) An accurate description of any person from whom the property was received. Such description shall include, but not be limited to, the person's full name; date of birth; residence; physical description, including, but not limited to, sex, height, weight, color of eyes and color of hair; and the identification number from any of the following forms of identification of the persons pawning or selling the property: valid driver's license containing a picture Minnesota identification card or current valid photo driver's license or photo identification card issued by another state, United States passport or military ID.
(3) 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, if applicable, and the amount of purchase money or the amount loaned.
(4) All forms shall be signed by the person leaving the property and initialed by the clerk or agent for the business.
(5) Entries on such forms shall not be erased, obliterated or defaced in any manner and shall be, at all reasonable times, open to inspection by the chief of police or any member of the police department or license and permit division.
(6) The records must, at all times, be open to inspection by the department of safety and inspections or the police department. Entries must be retained for at least three (3) years from the date of transaction. At all times during the terms of the license, the licensee must allow any representative of the department of safety and inspections and/or the police department to enter the premises where the licensed business is located, including all off-site storage facilities, during normal business hours, except in an emergency, for the purpose of inspecting such premises and inspecting the items, wares, merchandise, and records therein to verify compliance with this chapter and other applicable laws.
All recordable transactions shall include a written record, legibly written in the English language, and shall include: (1) the date, price and an accurate description of the purchase/items received; and (2) the full name, date of birth, address, phone number and ID number and type of the person from whom the property was received. Such records must be open to inspection by the department of safety and inspections and the city police department upon request, and must be retained for a period of at least three (3) years from the date of the transaction.
(c) Sales after reporting to the license inspector. No property purchased by any person licensed hereunder, which is the subject of a reportable transaction, shall be sold by or be permitted to be removed from the place of business of such licensee for a period of thirty (30) days after acquisition. There is no holding period for items which are the subject of a recordable transaction.
(d) Exempt transactions. The following items, when received by a dealer, are exempt from recording and reporting requirements in this chapter:
(1) The receipt of new 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 provided to the police or license inspector upon request.
(2) The sale or receipt of used merchandise donated to recognized non-profit organizations and for which no compensation is paid.
(3) The sale or receipt of secondhand household kitchen and laundry appliances.
(4) The sale or receipt of secondhand furniture, excluding audio, video and other electronic devices.
(5) The sale or receipt of secondhand cookware, cooking utensils, glassware and eating utensils that do not contain precious metals.
(6) The sale or receipt of secondhand clothing and shoes.
(7) The sale or receipt of secondhand infant's, toddler's or children's clothing, appliances, furniture, or safety devices.
(8) The sale or receipt of items received on consignment by the dealer.
(9) Purchases made by an antique dealer, designated as such under section 355.01(f), from a garage sale, estate sale, yard sale or private home.
(e) Reports to police. The licensee or employee of the licensee shall complete a purchase form, as required and furnished by the police department, for each transaction. Two (2) copies of such purchase form shall be delivered to the chief or duly detailed officer within five business days following the day of the transaction(s). The licensee must inform all patrons that all transactions are reported to the police department daily orally and by displaying a sign of sufficient size in a conspicuous place on the premises.
(1) Class A licensees must provide to the police department the information required in section 355.04(e) by transferring it from their computer through APS to the police department via modem. 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.
(f) Receipts required. The licensee or agent of the licensee shall give to any person from whom they receive property for which records are required in section 355.04(b) numbered, written or printed receipt for the property received for the loan or purchase. Such receipt shall correspond with the information on the purchase forms.
(g) Retention. The police department shall maintain the records turned over to them by the secondhand dealers for no less than six (6) months. Photographs must be retained for a minimum of thirty (30) days.
(h) Report of stolen or lost goods. If any goods, articles or things shall be advertised in any public newspaper of the city as having been lost or stolen, and such goods, articles or things shall then be or shall thereafter come into the possession of any licensee under the terms hereof, such licensee shall, upon actual notice thereof, immediately thereafter notify the chief or duly detailed officer that certain goods, articles or things advertised are in the licensee's possession and shall not thereafter dispose of the same except upon written authority so to do from the chief or duly detailed officer. If probable cause exists that specific goods or materials are stolen contraband or have been used in the commission of a crime and a representative of the police department notifies the licensee of such fact, the licensee shall not sell or permit to be sold, remove or permit to be removed, such goods and materials until such time as the licensee is notified by the chief or his or her representative.
(i) Labels. Licensees must attach a label to every item for which a report is required under section 355.04(b). Permanently recorded on this label must be the number or name that identifies the transaction in the dealer's records, the transaction date, and the name of the item. Labels shall not be reused.
(j) 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 remain in effect for fifteen (15) days from the date of initial notification, or until the investigative hold is canceled, or until an order to hold/confiscate is issued, whichever occurs first.
(k) Order to hold/confiscate. Whenever the chief, or the chief's designee, or a licensed law enforcement official from another jurisdiction 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, the chief's designee, or the licensed law enforcement official instituting the hold. The order to hold shall expire ninety (90) days from the date it is placed unless the chief or the chief's designee determines that the hold is still necessary and notifies the licensee in writing. If an item is identified as stolen or as evidence in a criminal case, the chief, the chief's designee, or a licensed law enforcement official from another jurisdiction may:
(1) Physically confiscate it and remove it from the shop;
(2) Place the item on permanent hold and leave it in the shop;
(3) Leave the item in the shop and authorize its release to the owner or an authorized person pursuant to the requirements of MN Stat. 609.523.
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 the phone 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, the chief's designee, or the licensed officer initiating the hold shall so notify the licensee.
(l) Business at only one place. A license under section 355.01, paragraphs (a), (b) or (d), shall authorize the licensee to carry on its business only at the permanent place of business designated in the license, except that a licensee may conduct an estate sale at the dwelling of the owner or prior owner of the goods, provided that all goods offered for sale are owned by or were obtained from the occupant of the dwelling where the sale is conducted. No license may be transferred to a different location or a different person.
(m) Inspection. Any person licensed under the provisions of this chapter shall, at all times during the term of said license, allow employees of the inspector or officers of the police force of the city to enter the premises where said licensee is carrying on such business for the purpose of inspecting such premises and inspecting the goods, wares, merchandise and records therein for the purpose of locating goods suspected or alleged to have been stolen or otherwise improperly disposed of.
(n) Persons claiming interest. All goods, wares or merchandise coming into the possession of any licensee under the terms hereof shall at all times be open to the inspection and right of examination of any person claiming to have been the owner thereof, or claiming to have had any interest therein, when such person is accompanied by a police officer of the city; and no licensee under the terms hereof shall hide, conceal or stow away any article in his or her possession from any member of the police department of the city.
(Code 1956, §§ 342.04, 342.06—342.11; C.F. No. 93-1646, § 4, 11-23-93; C.F. No. 02-612, § 5, 11-27-02; C.F. No. 07-149, § 99, 3-28-07)
