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 ninety (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 (1) 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 (1) 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 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 sixty-four (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 (5) 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.
(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 (1) 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.

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 four hundred (400) or more reportable transactions.
(b) Class B: Secondhand or antique dealers that engage in more than sixty (60) but fewer than four hundred (400) reportable transactions.
(c) Class C: Secondhand or antique dealers that engage in sixty (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 four hundred (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 four hundred (400) or more reportable transactions are, or should have been, submitted within any twelve 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 (5) preceding years;
(iii) the names and addresses of the employers or partners of the applicant’s current spouse for the preceding five (5) 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, 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 (5) 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.

(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 fourteen (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 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% 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 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 ten thousand dollar ($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 thirty (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 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 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 (3) 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 twenty-five ($25.00) dollars or more in cash or other consideration, or which the dealer intends to offer for sale, or broker, for fifty ($50.00) dollars 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 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:

(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 (2) inches in length by two (2) 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 (3) 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 (3) 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 twelve o’clock noon the first business day following 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 (6) 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 by Check Only. When a secondhand or antique dealer buys or otherwise receives any item, payment shall be made by check only, made payable to a named payee who is the actual and identified seller.

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 thirty (30) days after the date the police receive such report. A secondhand dealer or antique dealer may reduce the holding period to fifteen (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 thirty (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 thirty (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]

5-2623 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 eighteen (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 eighteen (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 (5) 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.

5-2627 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 (5) 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) 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 thirty (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 (3) 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.
(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 (5) 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.