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HomeMy WebLinkAboutOrdinance 9175 .-z i ~ y-. ORDINANCE NO. p .,/ AN ORDINANCE AMENDING CHAPTER 22 "JUNK", OF THE CODE OF THE CITY OF FORT WORTH (1964), AS AMENDED, BY REDESIGNAT- ING CHAPTER 22 TO BE CHAPTER 22, "SECONDHAND DEALERS"; BY REPEALING ARTICLE I, "IN GENERAL"; BY ESTABLISHING A NEW ARTICLE I TO BE DESIGNATED ARTICLE I "SECONDHAND DEALERS IN GENERAL"; PROVIDING DEFINITIONS; REQUIRING LICENSES FOR SECONDHAND DEALERS; PROVIDING FOR A LICENSE FEE AND RENEW- AL OF LICENSES; PROVIDING FOR GROUNDS FOR DENIAL OF A LI- CENSE; REQUIRING THE LICENSE BE AVAILABLE FOR INSPECTION; PROHIBITING THE USE OF THE LICENSE BY OTHERS; PROVIDING FOR REVOCATION OF A LICENSE AND PROCEDURES FOR THE APPEAL OF A DENIAL OR REVOCATION; REQUIRING SECONDHAND DEALERS TO REPORT TO THE POLICE DEPARTMENT PURCHASES OR TRADES OF USED OR SECONDHAND GOODS, WARES, OR MERCHANDISE; REQUIRING EACH ARTICLE PURCHASED TO BE KEPT INTACT AND TAGGED; REQUIRING USED OR SECONDHAND ARTICLES TO BE HELD FOR FOURTEEN (14) DAYS BEFORE RESALE; PROHIBITING THE REMOVAL OR OBLITERATION OF THE MANUFACTURER'S BRAND NAME OR SERIAL NUMBER; PROVIDING FOR THE INSPECTION OF SECONDHAND ARTI- CLES BY ANY POLICE OFFICER; REQUIRING A PARENTS' WRITTEN CONSENT FOR PURCHASES FROM .ANY PERSON UNDER EIGHTEEN (18) YEARS OF AGE; PROVIDING FOR EXEMPTIONS; PROVIDING THAT THIS ORDINANCE SHALL BE CUMULATIVE OF ALL ORDINANCES; PRO- VIDING A SEVERABILITY CLAUSE; PROVIDING FOR PUBLICATION; PROVIDING FOR ENGROSSMENT AND ENROLLMENT; PROVIDING A PENALTY; AND SETTING AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: SECTION 1. That Chapter 22, "Junk", of the Code of the City of Fort Worth (1964), as amended, be and the name is hereby redesignated as Chapter 22, "Secondhand Dealers". SECTION 2. That Article I, "In General", of Chapter 22 of the Code of the City of Fort Worth (1964), as amended, be and the same is hereby repealed. SECTION 3. That a new Article I to Chapter 22 of the Code of the City of Fort Worth (1964) , as amended, be and the same is hereby establish- ed, which new Article I shall read and be as follows: ARTICLE I. SECONDHAND DEALERS IN GENERAL Sec. 22-1 Definitions. For the purposes of this Article, the following words and phrases shall have the meanings respectively assigned to them by this Section unless their use in the text of this Article clearly demonstrates a different meaning: •r :.. r '' . ~. /,` J -. ~ 3 r ~. 1. ~ ~~:r 4:;. !ill. ~~ (a) "Secondhand Dealer" means any person who, in the usual and ordinary course of business, engages in the purchase, sale, barter, or trade of used or second- hand goods, wares, or merchandise. "Secondhand Dealer" shall include: (1) Any business conducted by an established dealer in a permanent location within the City; or (2) Any temporary or transient business where the dealer conducts business within the City for a period of more than thirty (30) consecutive days. (b) "Used or Secondhand Goods, Wares, or Merchandise" means any item of personal property which is not purchased or sold by a dealer as new or which is acquired by a dealer after having been used or pur- chased by another. "Used or Secondhand Goods, Wares, or Merchandise" shall include, but not be limited to, the following: (1) Wearing apparel or clothing of any kind; (2) Crafted precious metals, jewelry, precious gems, and watches; (3) Furniture, home and kitchen appliances, luggage, musical instruments, clocks, and photography equipment; (4) Weapons and firearms; (5) Automobile parts and accessories; (6) Business machines; (7) Tools, power tools, and toolboxes; (8) Electronic equipment such as televisions, radios, and stereo equipment and accessories; and (9) Tobacco products. This term shall not be construed to include goods, wares, or merchandise which are purchased or sold as new by the original manufacturer, wholesale distribu- tors, or retail businesses. (c) "Crafted Precious Metals" means jewelry, silverware, art objects, or any other thing or object made, in whole or in part, from gold silver, platinum, palla- dium, iridium, rhodium, osmium, ruthenium, or their alloys, excluding coins, commemorative medallions, or bullion or bars of such metals. (d) "Business Machines" means typewriters, adding machines, check-writing devices, cash registers, calculators, addressing machines, letter sorting or folding devices, and recording, copying, and account- ing equipment. -2- ., fl_ - _, .~4 (e) "Power Tools" means tools powered by electrical current or by liquid or gaseous fuels, including but not limited to, welding equipment and pneumatic equipment. (f) "Licensee" means a person in whose name a licensee has been issued, or a person listed as an applicant on the application for a license. (g) "City" means the City of Fort Worth, Texas. (h) "Person" means any person, partnership, firm, corporation or other business entity. Sec. 22-2. License Requirement. (a) No secondhand dealer shall transact or engage in bus- iness within the City unless and until said second- hand dealer has obtained a license as provided herein: (1) Any secondhand dealer desiring a license shall make written application to the Chief of Police upon forms provided by the police department. (2) The application must be signed and sworn to by the applicant before an officer authorized by law to administer oaths. (3) Secondhand dealers shall pay an annual license fee in the amount of Twenty-Five Dollars ($25.00) to the City Tax Assessor-Collector. (4) Upon approval of the application by the Chief of Police and the payment of the license fee, the City Tax Assessor-Collector shall issue a li- cense to the applicant. (b) All secondhand dealers licenses shall expire one (1) year from date of issuance. Upon expiration, licenses shall be renewed for another year by the payment of the annual license fee of Twenty-Five Dollars ($25.00) to the City Tax Assessor-Collector. Sec. 22-3. Grounds for Denial. The Chief of Police may deny a license on one or more of the following grounds: (a) The applicant is under 18 years of age. (b) The applicant has made a false statement or misrepre- sentation of a material fact on the sworn application submitted to the Chief of Police. (c) The applicant has been convicted of a felony or any theft offense and three (3) years have not elapsed since the termination of any sentence, parole, or probation. Sec. 22-4. License to be Available for Inspection. Every secondhand dealer, while engaged in the conduct of his business, shall at all times have available for inspection his license to engage in such business. -3- i ~ e w A. Sec. 22-5. Use of License by Others Prohibited. No secondhand dealer shall assign or transfer his license to another or knowingly permit his license to be used by another, and no person shall exhibit or use the license of any secondhand dealer, except one issued to him, while engaging in the purchase, sale, or trade of secondhand goods, wares, and merchandise. Sec. 22-6. Revocation of License. The Chief of Police, upon notice and hearing, may revoke the license of any secondhand dealer on any of the following grounds: (a) The licensee has made a false statement or misrepre- sentation of a material fact on the sworn application submitted to the Chief of Police. (b) The licensee has knowingly failed to make a report as required by Section 22-8 or has knowingly recorded false information of a material fact on a report required by said Section. (c) An employee or agent of a licensee has knowingly failed to make a report as required by Section 22-8 or has knowingly recorded false information of a material fact on a report required by said Section under circumstances which indicate that the licensee knew or should have known of his employee's or agent's conduct. (d) The licensee has refused to allow the Chief of Police or any police officer of the City to inspect the records required by Section 22-8 or to inspect any used or secondhand articles purchased by the licensee as required by Section 22-12. (e) The licensee has violated any other provision or re- quirement of this Article. (f) The licensee has been convicted of a felony or any theft offense. Sec. 22-7. Appeal. (a) If the Chief of Police denies the issuance of a license or revokes a license, he shall send to the licensee by certified mail, return receipt requested, written notice of his action and the right to an appeal. The licensee may appeal the decision of the Chief of Police to the City Council within 10 days after receipt of the notice from the Chief of Police. The action of the Chief of Police is final unless a timely appeal is made. The filing of an appeal stays the action of the Chief of Police in revoking a license until the City Council makes its final decision. The City Council may affirm, reverse, or modify the action of the Chief of Police, and the decision of the City Council is final. (b) When the Chief of Police revokes a license, the revocation shall continue for one (1) year, and the licensee shall not be issued a license for one (1) -4- :y f i ~i ~ year from the date the revocation became final. If, subsequent to the revocation, the Chief of Police finds that the basis for the revocation has been cor- rected or abated, the licensee may again be granted a license if at least 90 days have elapsed since the date the revocation became final. If the license was revoked under Section 22-6 (f) of this Article, the licensee may not be granted another license within three (3) years of the termination of any sentence, parole, or probation. Sec. 22-8. Records Required of Secondhand Dealers; Identification of Sellers. (a) Any secondhand dealer doing business in the City, or any employee or agent of said dealer, who purchases or trades for used or secondhand goods, wares, or merchandise in the City for the purpose of resale to the public shall, at the time of purchase, record in a legible manner in duplicate on a sequentially- numbered report form, approximately 5" by 8" in dimension, the following information: (1) An accurate and complete description of the art- icle purchased; (2) Date and time of purchase; (3) The amount of money paid or other consideration exchanged for the property purchased; (4) The name, age, sex, race, and place of residence of the person selling the article; (5) The license number of the automobile in which the article was delivered to the secondhand dealer, and the state that issued the license, as reported by the seller; (6) The number of the seller's drivers license, military identification card, state-issued identification card, or federally-issued identi- fication card, except a social security card; (7) The signatures of the seller and the secondhand dealer. (b) Neither the secondhand dealer nor any employee or agent of said dealer shall purchase or trade for any used or secondhand property unless the seller of said property provides one of the forms of identification required in subsection (a)(6) above. (c) Any secondhand dealer who trades for or purchases used or secondhand goods, wares, or merchandise from another licensed secondhand dealer shall be required to record upon the report form only the City license number of the secondhand dealer from whom the used or secondhand articles were received, in lieu of the information required by subsection (a). (d) The report forms described above shall be furnished by the City to secondhand dealers free of charge. Any secondhand dealer may, at his own expense, print and -5- w" .~ 4 ~ use his own report forms, provided such forms conform in dimension and in the information required to the forms furnished by the City. (e) One copy of the completed report shall be mailed to the police department within 48 hours from time of purchase or trade. The second copy shall be retained by the secondhand dealer for a period of two years. The reports required above shall at all reasonable times be open to inspection by the Chief of Police or any police officer of the City. (f) Neither the secondhand dealer nor any employee or agent of said dealer shall knowingly record false information of a material fact on a report required by this Section. Sec. 22-9. Identification of Articles Purchased; Purchases to be Kept Intact; Tagging. Each article purchased by a secondhand dealer shall be kept intact and separate from property purchased from other sellers. Each article shall have attached on the container, or if no container, on the article itself a tag on which is legibly printed the corresponding number of the report required in Section 22-8. Sec. 22-10. Period Articles to be Held Before Resale. All secondhand articles purchased by secondhand deal- ers shall be retained by them in their original shape, form, and condition for a period of fourteen (14) consecu- tive days after such purchase during which period no part of such purchase shall be sold or removed from the place of business of said dealer. Secondhand articles may be held for less than fourteen (14) days upon the written authorization of the police department. The aforementioned holding period is not required for secondhand articles purchased from other licensed secondhand dealers within the City. Sec. 22-11. Removal or Obliteration of Manufacturer's Brand Name or Serial Number Prohibited. No secondhand dealer shall remove, alter, or obliter- ate the manufacturer's brand name, serial number, or other identifying numbers or marks from any secondhand article purchased. Sec. 22-12. Inspection of Purchased Items. Each article purchased by any secondhand dealer shall at all reasonable times be open to inspection by the Chief of Police or any police officer of the City. Sec. 22-13. Purchases from Minors. No secondhand dealer shall purchase for any purpose any used or secondhand article from any person under the age of 18 years or which may be owned or claimed by or in the possession or control of such person unless the parent or guardian of such person shall state in writing that such transaction took place with such parent's or guard- ian's full knowledge and consent. The written statement -6- 1 shall be signed the address and or guardian. r, y,~ 4 by a parent or guardian and have thereon telephone number, if any, of such parent Sec. 22-14. Implementation of Article; Exemptions. This Article shall not apply to: (a) Charitable, philanthropic, religious, fraternal, civic, patriotic, social, or school-sponsored organi- zations or associations or to any non-profit corpora- tions or associations; (b) Any person dealing solely in the purchase, sale, or trade of used or secondhand motor vehicles; (c) The occasional sale to the public of used or second- hand goods and wares that have been used primarily for personal, family, or household purposes by the owner, if the seller, at the time of sale, is not engaged in the business for profit of selling goods of that or of a similar nature, which shall include garage sales conducted at a private residence and neighborhood garage sales; (d) Public and private auctions; (e) Sales made by any public officer in his official capacity as a trustee in bankruptcy, executor, admin- istrator, receiver, or public official acting under judicial process or authority, or sales on the execu- tion of, or by virtue of, any process issued by a court; (f) Sales and purchases made by the United States, the State of Texas, or the City of Fort Worth, or any political subdivision, department, or agency thereof; (g) Used or secondhand articles which are deposited with or otherwise actually delivered into the possession of a pawn broker in the course of his business in connection with a pawn transaction under the provi- sions of the Texas Pawnshop Act; (h) Any person dealing in secondhand or used merchandise whose dealing is limited to the acquiring of such merchandise through an exchange for new merchandise, and to the selling of such by sale only incidental to any part of the main business of dealing in new goods or merchandise. (i) Itinerant vendors as defined by Chapter 21 of the Code of the City of Fort Worth; provided, however, any itinerant vendor who purchases, barters, or trades for any used or secondhand good, wares, or merchandise while doing business in the City shall comply with the reporting requirements in Sec~cion 22-8 of this Article. (j) Recyclers and recycling facilities as defined in Article III of this Chapter. -7- r ,S t r ~ ~ ' w s .~'P^ ~, SECTION 4. That this ordinance shall be cumulative of all provisions of ordinances and of the Code of the City of Fort Worth, Texas (1964), as amended, except where the provisions of this ordinance are in direct conflict with the provisions of such ordinances and such Code, in which event conflicting provisions of such ordinances and such Code are hereby repealed. SECTION 5. That it is hereby declared to be the intention of the City Council that the sections, paragraphs, sentences, clauses and phrases of this ordinance are severable, and if any phrase, clause, sentence, paragraph or section of this ordinance shall be declared unconstitutional by the valid judgment or decree of any court of competent jurisdiction, such unconstitutionality shall not affect any of the remaining phrases, clauses, sentences, paragraphs and sections of this ordinance, since the same would have been enacted by the City Council without the incorporation in this ordinance of any such unconstitutional phrase, clause, sentence, paragraph or section. SECTION 6. That the City Secretary of the City of Fort Worth is hereby directed to publish the caption and penalty clause of this ordinance for two (2) days in the official newspaper of the City of Fort Worth, as authorized By Article 1176b-1, Revised Civil Statutes of Texas. SECTION 7. That the City Secretary of the City of Fort Worth is hereby directed to engross and enroll this ordinance by copying the caption and the penalty clause in the minutes of the City Council and by filing the ordinance in the ordinance records of the City. -8- ~,,_ ~: i'.n w.. ~ ~ eAr 'r a A.!. ~.~/~.. ` .. T'- - .~ .. SECTION 8. That any person violating any of the provisions of this ordi- nance shall be deemed guilty of a misdemeanor, and each such person shall be deemed guilty of a separate offense for each day or portion thereof during which any violation of any of the provisions of this ordinance is committed, continued or permitted, and each violation shall be punishable by a fine not to exceed Two Hundred Dollars ($200.00). SECTION 9. This ordinance shall be in full force and effect from and after the date of its passage and publication as required by law, and it is so ordained. APPROVED AS TO FORM AND LEGALITY: .+~ ~ity Attorney Date ADOPTED:- EFFECTI VE : '' lv -9- A3fER F'ilE•I ~~~ ~../ffii~PM ~~ ~~A' ~ fll'f $i~ ~~./~Q/bo5 CITY MANAGER 1 a~ {~~//y-~,/~~) ~ ~j /'////~ {,~~"~ ~ /( ~y ACCOUNTING2 ~)®M ~~ `w~/`€s'(LIY~C'VfS~ `~./~~/Ib~~~~~~~®OU/ TRANSPORTA POLICE gpMl TAX-i TI01 DAVE NUI-iBERC~ susJ~cv Secondhand Dealers Ordinance PAGE NIS RATI~h•1, 8/7/84 G-6077 1 of 2 Background In March of 1984, the Police Department attempted to initiate strict enforcement """ 'of the existing City ordinance relating to secondhand dealers, junk dealers and scrap metal dealers, in an attempt to reduce trafficking in stolen property being bought and sold by some of the licenses in the above categories. As a result of the attempt to initiate strict enforcement of this ordinance, the Tarrant County Pawnbrokers Association who were subject to the provisions of the existing ordinance obtained an injunction against the city =and the Police Depart-~ went prohibiting the enforcement of the ordinance. It appeared at that time that the main objection voiced by> this association was the requirement of a thumbprint as a means of identificat3_on from all persons selling secondhand merchandise to these businesses. In addition the association in some instances objected to being classified as junk dealers. The Police Department in an attempt to resolve the matter relating to the enforce- ment of the ordinance began a series of meetings with representatives of the Tarrant County Pawnbrokers Association and a number of licensees including representatives from the scrap metal dealers ~_n the city of fort Worth As a result of the meetings an agreement was re~~hed that the Police and Law Departments would rewrite the ordinance During these meetings the licensee and/ or their representatives were solicited for suggestions and recommendations as to the content of the new ordinance. After considerable study by the Department of Law and the Police Department it was determined that due to the vast differenr_e existing between secondhand dealers and scrap metal dealers (or junk scrap dealers that the most appropriate approach would be to write two separate ordinances,one relating to secondhand dealers and the other relating to scrap metal dealers. Subsequently, a draft of tine proposed ordinance regulating secondhand dealers was prepared and sent to the affected parties for review. On June 12, 1984, a final meeting was held in an attempt to reach an agreement on the provisions of the ordinance It appears that most of the affected persons who attended the meeting were in agreement with the provisions of the revised ordinance with the exception of the Tarrant County Pawnbrokers Association. After considerable negotiations with legal counsel representing the Tarrant County Pawnbrokers Association, it appears unlikely that an agreement can be reached with this organization Some of the reasons for the disagreement are legal in nature. Zn other areas the desires of the pawnbrokers association go beyond what is felt to be necessary in the way of regulation desired by this organization, more specifically the Tarrant County Pawnbrokers Association .insists on a separate secondhand dealers ordinance relating to pawnshop operators onl It is the opinion of the. City's legal staff that such is legally unsound and may be in direct conflict with the current state pawnbrokers law; the Police Department feels it is unreasonable inasmuch as a separate ordinance cannot be created regulating the dealing in secondhand goods for each different type of business currently dealing in secondhand goods in the city In regard to the other requests by the Tarrant Go;unty Pawnbrokers Association, it was their desire e~fiE_. ....~. - gEFEl~ENE€~..~..~.... Nl~AA~ER" b4~~E~~' ....-----e_ .m...._~.._ __ _- ......,..._...._ s.. _ ....... ,. _ PAG€....~_ x/7/84 ~.-fiA77 S~esgpd~~H~ ~egle~s Qrd~nanee 2 ~ ,. `V of.^ that tt}e gr~inanEe striex~.y ~'@gglal:e tt~e ~a~s and hours of business gf operation parta3.nin.~ tc pa~x-@ho~s. ~~ ~~ t}~e cgntgAtion of the police ~~epartmr3nt that ~~}~.~ is inappropriate and an unnecessar-y regulation of these ~iusinesses. ~Iowever, ~not~ithist~n~ing the ~pregoln~ a Dn~bex of the ~'ecommendatlons subm~.tted ~y the ~ahmbrQ~gxs Association We~'e ~.ncorpQ~'stad lD tt}e net seegnc~hand dealers pr~~~?snce~ ~asica].1y, the Qrdinance has begs} changed as follows. ~econdhan~ dealers and ~revieusiy described junk~serap metal dealers are ng~a re,-uiate~ ~y twg separgte ~ ~ ordinances, one to be titled, "Secondhand Dealers Ardii}anee" (the~or-dinance regulating dealers in reeyeleable scrap will_ now ~e known as "Reeyclers Ordinance" and will be submitted at a later date). The changes occurring in the new Secondhand Dealers Ordinance are as follows: 1. The terms "secondhand dealers," "used" or "secondhand goods, wares or merchandise" have been more specifically defined so as to eliminate the doubt and uncertainty which exis!.ed under the old ordinance as to which businesses or individuals were covered by the ordinance. 2. Specifically exempts pawnbrokers while in the course of a pawn transaction and eliminates any reference to junk and/or junk dealers. 3. Includes new procedural requirements in regard to due process and establishes an appeal procedure wherein a license is denied o-- :e~~oked. 4. No longer regulates days and hours in which a secor:uhand dealer must conduct business. 5. Requires a thumbprint of the seller oni~ ip eases wherein the seller possesses no reasonably valid I.D. :_.~ ~t ~i~~~13~~~~~~ $ ~@~~`~~~~ ~~~ 116=~~~~~~ ~@~~~~~! Q~ ~~1 ~~~`~~~~@Et ~~~enEi~ea~~ goods but provides an exception to the fourteen day period and provides for special approval by the Police Department sooner than the fourteen day hold period. 7. Eliminates the necessity and requirement of a bond prior to licensing. 8. Requires licensees to mail reports to the Police Department within 48 hours of the transactions. APPRO ~ Recommendation CITY C It is recommended that the City Council approve the attached ordinance regulating the buying and selling of secondhand goods. A UG 21 '~ / ~/~, VS: jc Attachment City Secretary of ha City of Fort , ,Z SUBMITTED FOR TH CITY MANAGER'S DISPOSITION BY COUNCIL: PROCESSED BY OFFICE BY (~ AP ROVED ORIGWATING Chief Hopkins DEPARTMENT HEAD: ~~~1yp TMER (DESCRIBE) {~ a` ~~~~ ~~ ~~ / CITY SECRETARY FOR ADDITIONAL INFORMATION CONTACT Deputy Chief H.L. Clark Ext. 6410 -~"`' -j ~ DATE ,~ BY JNC.IL 1984 -gym v