HomeMy WebLinkAboutOrdinance - 2009-O0015 - Adding Article XIII To Ch. 14, Requiring Electronic Recordkeeping - 03/23/2009First Reading
February 26, 2009
Item No. 6.6
ORDINANCE NO. 2009-00015
Second Reading
March 23, 2009
Item No. 6.7
AN ORDINANCE ADDING ARTICLE XIII TO CHAPTER 14 OF THE CITY OF
LUBBOCK CODE OF ORDINANCES, ENTITLED "PAWNBROKERS AND OTHER
BUSINESSES," REQUIRING ELECTRONIC RECORDKEEPING BY OWNERS OR
OPERATORS OF PAWNSHOPS AND CERTAIN OTHER BUSINESSES IN THE CITY;
PROVIDING ADDITIONAL PROVISIONS TO PREVENT OR CURTAIL TRANSACTIONS
IN STOLEN PROPERTY; PROVIDING A PENALTY; PROVIDING A SAVINGS CLAUSE;
AND PROVIDING FOR PUBLICATION.
WHEREAS, one of the stated purposes of the Texas Pawnshop Act, V.A.T.C. Finance
Code §§ 371.001 et. seq, is to prevent transactions in stolen property and other unlawful property
transactions by licensing and regulating pawnbrokers and pawnshop employees; and
WHEREAS, pursuant to Section 371.204 of that Code, a peace officer may inspect a
pawnbroker's books, accounts, papers, correspondence, or other records that relate to the
pawnbroker's business at any reasonable time without judicial writ or other process; and
WHEREAS, each metal recycling entity in Texas is required under V.A.T.C.
Occupations Code § 1956.033 to keep an accurate electronic record or an accurate and legible
written record of certain purchases made in the course of such entity's business; and
WHEREAS, pursuant to Sections 1956.035 and 1956.036 of the Occupations Code, such
metal recycling entities must permit peace officers to inspect such records and provide the Texas
Department of Public Safety reports containing the information required under Section 1956.033;
and
WHEREAS, similar recordkeeping and reporting requirements are required by the
Occupations Code for secondhand dealers and persons engaged in the business of purchasing and
selling certain crafted precious metals; and
WHEREAS, peace officers likewise have authority under that Code to inspect such
crafted precious metals; and
WHEREAS, the ability of peace officers to access the above -referenced records
electronically would enable such officers to prevent and investigate transactions in stolen
property and other unlawful property transactions more thoroughly and more efficiently; and
WHEREAS, the City Council of the City of Lubbock, Texas, believes it is in the best
interest of the citizens of this City that such officers be afforded every lawful means to prevent
and investigate crimes of this nature;
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
LUBBOCK, TEXAS:
SECTION 1. THAT Chapter 14 of the City of Lubbock Code of Ordinances, entitled
"Licenses and Business Regulations," BE and is hereby amended by adding Art. XIII thereto,
and which shall read as follows:
ARTICLE XIII. PAWNBROKERS AND OTHER DEALERS
Sec. 14327. Definitions.
The following words or phrases, whenever used in this article, shall be construed
as defined in this section:
Chief of police. The chief of police of the City of Lubbock, Texas, or his
designated representative.
Crafted precious metal dealer. Any person who engages in the business of
purchasing and selling crafted precious metal as defined in V.A.T.C. Occupations Code §
1956.051, excluding those exceptions found in §§ 1956.052 et seq., of such Code, as
amended.
Metal recycling entity. Anyone, who from a fixed location engages in the
business of utilizing machinery or equipment for the processing of or manufacturing of
iron, steel, or nonferrous metallic scrap and whose principal product is scrap iron, scrap
steel or nonferrous metallic scrap for remelting purposes.
Pawnbroker. Any person as defined in the Texas Pawnshop Act, V.A.T.C.
Finance Code §§ 371.001 et seq., as amended.
Person. An individual, corporation, partnership, or other legal entity, or any of
their employees or agents.
Secondhand dealer. Any person engaged in the business of buying and selling
used or secondhand personal property, or lending money on the security of personal
property deposited with the person. -
Secondhand metal dealer. A person who operates or maintains a scrap metal yard
or other place in which used or previously purchased metal items or scrap metal is
collected or kept for shipment, sale, or transfer.
Sec. 14-328. Recordkeeping requirements.
(a) Except as otherwise herein provided, every person licensed or transacting any
business as a crafted precious metal dealer, metal recycling entity, pawnbroker,
secondhand dealer or second hand metal dealer within the city limits shall, beginning
sixty (60) days following the effective date of this ordinance, maintain an electronic
inventory -tracking system and transmit all information required by this article via
computer to the entity designated by the chief of police.
(b) The information required to be transmitted by this section for crafted precious
metals dealers, pawnbrokers, and secondhand dealers must include:
1. The date and time of each transaction in which personal property is
purchased, pledged, or received for the sum of $25 or more (or other
consideration equivalent to that amount).
2. An accurate and detailed description of any and all property purchased
or acquired during the regular course of business for the sum of $25 or more (or
other consideration equivalent to that amount), including any and all trademarks,
identification numbers, serial numbers, model numbers, brand names, and other
identifying marks.
3. The actual price paid or the amount of money involved in each such
transaction.
4. The full name, address, telephone number, date of birth, driver's
license number or state -issued identification card, and physical description of the
person with whom each such purchase or transaction is consummated.
5. A digital photograph of any item not bearing a unique serial number
purchased or acquired for a sum of money more than $50.
6. Such other information as the chief of police may reasonably deem
necessary to ensure compliance with the laws of the State of Texas and
ordinances of the City of Lubbock.
(c) The information required to be transmitted by sub -section (b) of this
Section shall be transmitted within forty-eight (48) hours of the date and time a purchase
or transaction is consummated.
(d) The information required to be transmitted for metal recycling entities and
secondhand metal dealers shall be the information that is required of such businesses by
Chapter 1956 of V.A.T.C. Occupations Code, as amended.
(e) The information required to be transmitted by sub -section (d) of this Section
shall be transmitted by the date and time prescribed by Chapter 1956 of such Code.
Sec. 14.329. Defenses.
This article shall not be applicable to:
(a) Automobile dealerships.
(b) The sale of aluminum cans.
(c) Charitable or eleemosynary organizations.
(d) Used or secondhand clothing businesses.
(e) Used or secondhand furniture businesses.
(f) Antique dealers.
Sec. 14.330. Government or utility property.
(a) It shall be unlawful for any person licensed or transacting any business
as a crafted precious metal dealer, pawnbroker, or secondhand dealer within the city
limits to purchase or receive any item of property on which words or markings appear
indicating ownership of such item by the United States, the State of Texas, or any of its
political subdivisions or agencies, or any public utility company, except where the person
offering such item for sale or transfer provides: (1) written authorization from the
governmental entity, agency, or utility to convey the item on behalf of the entity, agency,
or utility; or, (2) a valid receipt from the governmental entity, agency, or utility
evidencing such entity, agency, or utility has conveyed or relinquished ownership of the
item.
(b) It shall not be a defense to prosecution under sub -section (a) of this
section that an item of property contains no words or markings indicating ownership if
the person who purchased or received the item knows or should reasonably be expected
to know such item is owned by the United States, the State of Texas, or any of its
political subdivisions or agencies, or any public utility company.
Sec. 14.331. Acceptance of property sealed or unopened in its original packaging.
It shall be unlawful for any person licensed or transacting any business as a
crafted precious metal dealer, pawnbroker, or secondhand dealer within the city limits to
purchase or receive an item of property sealed or unopened in its original packaging
unless the person conveying such item presents a receipt or proof of purchase for the
item.
Sec. 14.332. Acceptance of property inscribed with a company name.
It shall be unlawful for any person licensed or transacting any business as a
crafted precious metal dealer, pawnbroker, or secondhand dealer within the city limits to
purchase or receive an item of property bearing the name, initials, or logo of a business
entity unless the person conveying such item provides at the time of conveyance a valid
receipt indicating lawful ownership, a signed statement attesting to lawful ownership, or
written authorization from the owner to convey the item on such owner's behalf.
Sec. 14.333. Penalty.
A violation of this ordinance shall constitute a misdemeanor and, upon conviction
thereof, shall be punishable by a fine not to exceed two hundred dollars ($200.00).
SECTION 2. THAT if any provision, section, subsection, sentence, clause or phrase of
this Ordinance is for any reason held to be unconstitutional, void or invalid, the validity of the
remaining portions of either such Ordinance shall not be affected thereby, it being the intent of
the City Council in adopting this Ordinance that no portion hereof or provision or regulation
contained herein shall become inoperative or fail by reason of any unconstitutionality, voidness,
or invalidity of any other portion hereof, and all provisions of both such Ordinances are declared
to be severable for that purpose.
SECTION 3. THAT the City Secretary is hereby authorized to cause publication of the
descriptive caption of this Ordinance as an alternative method provided by law.
AND IT IS SO ORDERED.
Passed by City Council on first reading this 26th day of Feb Hary , 2009.
Passed by City Council on second reading this 23rd day of March _ , 2009.
TOM MARTIN, MAYOR
ATTEST:
Reb ca Garza, City Secretary
APPROVED AS TO C TENT:
r
Dale Holton, Chief of Police
APPROVED AS TO FORM:
Harold Willard, Asst. Ci Attorney
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February27, 2009