CITY OF COON RAPIDS, MINNESOTA
CHAPTER 5-2700
PRECIOUS METAL DEALERS

5-2701 Purpose. The City Council finds that the use of services provided by precious metal dealers provides an opportunity for the commission of crimes and their concealment because precious metal dealers and their businesses have the ability to easily and quickly receive and transfer property stolen by others. The City Council also finds that consumer protection regulation is warranted in transactions involving precious metal dealers. The City Council further finds that the precious metal dealer industry has outgrown the City’s current ability to effectively or efficiently identify criminal activity related to precious metal dealers and their businesses. The purpose of this Chapter is to prevent precious metal dealers and their businesses from being used as facilities for the commission of crimes and to assure that such dealers and businesses comply with basic consumer protection standards, thereby protecting the public health, safety, and general welfare of the citizens of the City.

To assist the Police Department in better regulating current and future precious metal dealers, decrease and stabilize costs associated with the regulation of the precious metal industry, and increase identification of criminal activities in the precious metal industry through the timely collection and sharing of precious metal transaction information, this Chapter also implements and establishes the required use of the automated pawn system (APS).

5-2702 Definitions. The following words and terms when used in this Chapter shall have the following meaning unless the context clearly indicates otherwise:

(1) Issuing Authority. The City of Coon Rapids.
(2) Item Containing Precious Metal. An item made in whole or in part of metal and containing more than one (1) percent by weight of silver, gold, or platinum.
(3) Minor. Any person under the age of eighteen years.
(4) Person. 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; and any other business organization.
(5) Precious Metals. Silver, gold, or platinum.
(6) Precious Metal Dealer. Any person engaged in the business of buying, and selling, or selling on consignment, coins or secondhand items containing precious metal, including, but not limited to, jewelry, watches, eating utensils, candle sticks, and religious and decorative objects. Persons conducting the following transactions shall not be deemed to be precious metal dealers:

(a) transactions at occasional “garage” or “yard” sales, or estate sales or farm auctions except that precious metal dealers must comply with the requirements of Minnesota Statutes, Sections 325F.734 through 325F.742, for these transactions.
(b) securities transactions regulated by Minnesota Statutes, Chapter 80A.
(c) transactions regulated by the Federal Commodity Futures Commission Act.
(d) transactions involving the purchase of precious metal grindings, fillings, slag, sweeps, scraps, or dust from an industrial manufacturer, dental lab, dentist or agent thereof.
(e) transactions involving the purchase of photographic film, such as lithographic and x-ray film, or silver residue or flake recovered in lithographic and x-ray film processing.
(f) transactions involving bullion or ingots.
(g) transactions in which the secondhand item containing precious metal is exchanged for a new item containing precious metal and the value of the new item exceeds the value of the secondhand item, except that a person who is a precious metal dealer by engaging in a transaction which is not exempted by this section must comply with the requirements of Minnesota Statutes, Sections 325F.734 to 325F.742.
(h) transactions between precious metal dealers if both dealers are licensed under Minnesota Statute, Section 325F.733, or if the seller’s business is located outside of the State and the item is shipped from outside the State to a dealer licensed under Minnesota Statutes, Section 325F.733.

(7) Reportable Transaction. Each transaction conducted by a precious metal dealer in which merchandise is received through purchase, consignment, or trade is reportable except:

(a) The bulk purchase or consignment 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 precious metal dealer must maintain a record of such purchase or consignment that describes each item, and must mark each item in a manner which relates to that transaction record.
(b) Retail and wholesale sales of merchandise originally received by purchase and for which all applicable hold periods have expired.

(8) Billable Transaction. Each reportable transaction conducted by a precious metal dealer.

5-2703 License Required. No person shall exercise, carry on, or be engaged in the trade or business of a precious metal dealer within the City of Coon Rapids unless such person is currently licensed as provided in this Chapter.

5-2704 Application Content. In addition to any information that may be required by the County of Anoka pursuant to Minnesota Statutes, Section 471.924, every 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, residence street address, and telephone number of the applicant.
(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 where 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 Statute, 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 (5) years;
(g) whether the applicant has ever been convicted of a felony, crime, or violation of any statute or ordinance other than a traffic ordinance. 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 and date of birth, and residence 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 preceding five (5) 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 minor traffic offense. 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 precious metal 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) per cent 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.

(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 Statute, 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, including the name of that 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 might 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.

5-2705 New Manager, Proprietor or Agent.

(1) Application Required. When a licensee places a manager, proprietor, or other agent in charge of a precious metal dealer business, or if the named manager(s), proprietor(s), or other agent(s) in charge of a licensed precious metal dealer 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 5-2704(1).
(2) Investigation Fee. The application for a new manager, proprietor, or other agent 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]

5-2706 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 the license.

5-2707 Application Submission. An application for a license pursuant to this Chapter shall be submitted to the City Clerk on forms provided by the Issuing Authority. The Clerk shall refer the applications to the Police Department or such other appropriate City departments for review, investigation, and recommendation. The Clerk shall submit the application for a precious metal dealer license to the City Council within thirty days of receipt of a completed application.

5-2708 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 the Police Department such evidence as the Department may reasonably require in support of the statements set forth in the application.

5-2709 Issuance of License.

(1) Within thirty days of submission, the City Council shall grant or deny an application for a new or renewal precious metal dealer license. Failure of the Council to act within thirty days of submission shall constitute approval of the license. Any falsification of, or material omission from a license application shall constitute good and sufficient cause to deny the application.
(2) 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.

5-2710 Conditions for Approval.

(1) No license shall be issued under this Chapter if the applicant, 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 precious metal 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 and 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, Section 278.01-278.03, questioning the amount or validity of taxes, the Issuing Authority 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) Precious metal dealer 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.

5-2711 Fees.

(1) Annual License Fees.

(a) A precious metal 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) The annual license fees for 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 the premises where the building is not ready 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 upon the date the building is ready for occupancy, whichever is sooner.
(c) The appropriate license fee shall be submitted with the application for a new or renewal license.
(d) The annual license fee shall be refunded if the application is denied.

(2) Investigation Fee.

(a) The investigation fee for a precious metal dealer license or for a change in manager, proprietor, or other agent 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. The billable transaction fee shall be established from time to time by ordinance of the City Council and shall be classified according to the medium by which daily reports required by Section 5-2716 are submitted to the Police Department. The billable transaction fee shall reflect the cost of processing transactions and other related regulatory expenses. The billable transaction fee for modem transaction shall not exceed the billable transaction fee for manual transactions. Billable transaction fee shall be billed monthly and is due and payable within 30 days. Failure to timely pay the billable transaction fee shall constitute a violation of this Chapter. [Revised 3/1/05, Ordinance 1868]

5-2712 Expiration of License. All licenses issued under this Chapter shall expire as of midnight on December 31st on the year of issuance.

5-2713 Renewal of License. An application for the renewal of an existing license shall be made to the City Clerk at least 30, but not more than 60, days prior to the expiration date of the license and shall be made on such forms as the Issuing Authority requires. Applications shall be submitted by the Clerk to the City Council in the same manner as an application for a new license. The Issuing Authority may deny a renewal application only upon a showing of good cause.

5-2714 Bond. 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 precious metal dealers and will conduct the 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 precious metal dealer, or in lieu thereof will pay the reasonable value and money to the person. The bond shall contain a provision that no bond may be canceled except upon 30 days written notice to the Issuing Authority, which notice shall be served upon the City Clerk.

5-2715 Records Required. At the time of a receipt of an item of property, regardless of how acquired, the precious metal dealer shall immediately record, using the English language, on computer disk in a form according to standards on file with the Chief of Police, or in a book or journal which has page numbers that are preprinted in an indelible ink, the following information:

(1) an accurate description of the item of property including, but not limited to, any trademark, identification number, serial number, brand name, or other identifying mark on such item.
(2) the purchase or sale price.
(3) the date and time the item of property was received by the precious metal dealer, and the unique alpha and/or numeric transaction identifier that distinguishes it from all other transactions in the licensee’s records. The identifiers shall be consecutively numbered and for the purpose of the reporting requirements of Section 5-2716 shall include any identifiers that may have been voided for any reason.
(4) the name, address, telephone number, and date of birth of the person from whom the item of property was received.
(5) the identification number and state of issue from any of the following forms of identification of the person from whom the item was received:

(a) current valid Minnesota driver license;
(b) current valid Minnesota identification; or
(c) current valid driver license or photo identification issued by another state.

(6)the signature of the person identified in the transaction.
(7) a color photograph or color video recording of:

(a) each customer involved in a billable transaction.
(b) each item purchased or consigned that does not have the unique serial or identification number permanently engraved or affixed.
(c) if a photograph is taken, it must be at least two inches in length by two inches in width and must be maintained in such a manner that the photograph can be readily matched an correlated with all other records of the transaction to which 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 who sold or consigned the item. 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 in the premises.
(d) If a video photograph is taken, the video camera must zoom in on the person selling or consigning the item so as to include an identifiable close up of that person’s face. Items photographed by video 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 either orally or by displaying a sign of sufficient size in a conspicuous place on the premises. The licensee must keep the exposed video tape for three months unless requested by the Police Department to keep the tape longer.
(e) Within 60 days of notification by the Police Department, the color photograph requirements of this subsection (7) shall be fulfilled by submitting the photographs as digital format specified by the Police Department, electronically cross referenced to the reportable transaction they are associated with notwithstanding the digital images may be captured from required video recordings. This provision does not alter or amend the requirements of this subsection (7).

(8) Inspection of Records. The precious metal dealer shall make available the information required in subsections (1) and (2) at all reasonable times for inspection by the City Police Department or Issuing Authority. The information required in subsection (1) of this section shall be retained by the precious metal dealer for at least four (4) years.

5-2716 Daily Reports to Police.

(1) Unless otherwise authorized by the Police Department, a licensee must provide to the Police Department the information required in Section 5-2715 by transferring that information from the licensee’s computer to the Police Department via modem. All required records must be transmitted completely and accurately after the close of business each day in accordance with standards and procedures established by the Issuing Authority using a dial-call back protocol or other procedures that address security concerns of the licensee and the Issuing Authority. The licensee must display a sign of sufficient size, in a conspicuous place on the premises, which informs all patrons that all transactions are reported to the Police Department daily.
(2) Licensees will be charged monthly for billable transactions at the current rate established by the City Council.
(3) If a licensee is unable to successfully transfer the required reports by modem, the licensee must provide the Police Department printed copies of all reportable transactions along with the video tape(s) for the date by 12:00 o’clock noon the next business day. If the problem is determined to be in the licensee’s system and is not corrected by the close of the first business day following the failure, the licensee must continue to provide the required reports as provided for herein, but maybe charged an additional fee as established by the City Council for each transaction submitted in this manner after the close of the first business day following the day of failure. If the problem is determined to be outside the licensee’s system, the licensee must continue to provide the information as provided for herein, but shall not be subject to an additional charge.
(4) If a licensee is unable to capture, digitize, or transmit the photographs required herein the licensee must immediately take all required photographs with a still camera, immediately develop the pictures, cross reference to photographs to the correct transaction, and deliver them to the Police Department by 12:00 o’clock noon the next business day. The licensee may be subject to an additional charge for each photograph submitted in this manner after the close of the first business day following the failure.
(5) Notwithstanding any other provisions herein, the Police Chief, or Chief’s designee, upon presentation of extenuating circumstances, may extend the period before any additional charges are imposed for the manual reporting of billable transactions.
(6) The daily reports shall be submitted to the City Police Department on forms approved by the Department and shall contain the following information:

(a) an accurate description of the item of property including, but not limited to, any trademark, identification number, serial number, brand name or other identifying mark on such item.
(b) the price of the item paid by the precious metal dealer.
(c) the date, time, and place of receipt of the item.
(d) the name, address, telephone, and date of birth of the person from whom the item was received.
(e) the identification number from one of the following forms of identification of the person from whom the item was received:

(i) a valid Minnesota driver license;
(ii) a Minnesota identification card;
(iii) a valid driver license or photo identification card issued by the state of residency of the person from whom the item was received.

5-2717 Receipt Required. Every licensee must provide a receipt to the party identified in every reportable transaction and must maintain a duplicate of that receipt for three years. The receipt must include at least the following information.

(1) the name, address, and telephone number of the licensed business.
(2) the date on which the item was received by the licensee.
(3) an accurate description of each item received, including, but not limited to, any trademark, identification number, serial number, model number, brand name, or other identifying mark on such item.
(4) the signature or unique identifier of the licensee or employee that conducted the transaction.
(5) the amount advanced or paid.
(6) the full name, residence address, residence telephone number, and date of birth of the seller or consigner.
(7) the identification number and state of issue of any of the following forms of identifications of the seller or consigner:

(a) current valid Minnesota driver license.
(b) current valid Minnesota identification card.
(c) current valid photo driver license or identification card issued by another state.

(8) the signature of the seller of consigner.

5-2718 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/confiscate is issued, pursuant to Sections 5-2718 (2) or (3) whichever occurs first.
(2) Order to Hold. Whenever the Chief of Police, or the Chief’s designee, notifies a licensee not to sell and 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 shop, pursuant to a written order from the Chief or the Chief’s designee, or
(b) place the item on hold or extend the hold as provided in Section 5-2718 (2), and leave the item in the business.

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.

5-2719 Licensee Requirements.

(1) Hours of Operation. No licensee shall keep the establishment open for the transaction of business on any day of the week before 7:00 AM or after 10:00 PM.
(2) License Display. A license issued under this Chapter must be posted in a conspicuous place on the premises for which it is issued. The license issued is only effective for the compact and contiguous space specified in the approved license application.
(3) Maintenance of Order. A licensee under this Chapter shall be responsible for the conduct of the business being operated and shall maintain conditions of order.
(4) Gambling. No licensee under this Chapter may keep, possess, or operate, or permit the keeping, possession, or operation on the license premises of dice, slot machines, roulette wheels, punch boards, blackjack tables or pinball machines which return coins or slugs, chips, or tokens of any kind, which are redeemable in merchandise or cash. No gambling equipment authorized under Minnesota Statutes, Sections 349.11 - 349.60 may be kept or operated and no raffles may be conducted on the licensed premises and/or adjoining rooms. The purchase of lottery tickets may take place on the licensed premises as authorized by the Director of the Lottery pursuant to Minnesota Statutes, Sections 349.01 - 349.15.
(5) Prohibited Goods. No licensee under this Chapter shall accept any item of property which contains an altered or obliterated serial number or “operation identification” number or any item of property whose serial number has been removed.

5-2720 Holding Period. Any item received by a precious metal dealer for which a report to the police is required under this Chapter shall not be sold or otherwise transferred for thirty (30) days after the item is received by the precious metal dealer.

5-2721 Restrictions on License Transfer. Each license issued under this Chapter shall be issued to the applicant only and shall not be transferable to any other person. No licensee shall loan, sell, give, or assign a license to another person. No license issued under this Chapter may be transferred to a different location than the one identified in the license application.

5-2722 Inspection of Items. At all times during the term of the license, the licensee must allow the Chief of Police, or the Chief’s designee(s) to enter without notice the premises where the license business is located, including all off-site storage facilities as authorized in Section 5-2725, during normal business hours, except in an emergency, for the purpose of inspecting such premises and inspecting the items, ware and merchandise, and records therein to verify compliance with this Chapter or other applicable laws.

5-2723 Label Required. Licensees must attach a label to every item at the time it is purchased or received in inventory for any reportable transaction. Permanently recorded on this label must be the number or name that identifies the transaction in the precious metal dealers records, the transaction date, the name of the item, and the description or the model and serial number of the item as reported to the Police Department, whichever is applicable, and the date the item can be sold. Labels shall not be reused.

5-2724 Prohibited Acts.

(1) No person under the age of eighteen years may sell or consign, or attempt to sell or consign, goods with any licensee nor may any licensee receive any goods from a person under the age of eighteen years.
(2) No licensee shall receive any goods from a person of unsound mind or an intoxicated person.
(3) No licensee may receive any goods, unless the seller presents identification in the form of a valid driver’s license, a valid State of Minnesota identification card, or a current valid photo driver license or identification card issued by the state of residency of the person from whom the item was received.
(4) No licensee 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) No licensee shall knowingly possess stolen goods.
(6) No licensee shall sell goods prior to the expiration of any holding period.
(7) No licensee shall engage in any transaction involving a motor vehicle as defined in Minnesota Statutes, Section 168.011.

5-2725 Off-site Storage. A license under this Chapter authorizes the licensee 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 lot and secured storage facility. The licensee shall permit inspection of the off-site facility in accordance with Section 5-2722. All provisions of this Chapter regarding record keeping and reporting apply to the off-site facility and its contents. Property shall be stored in compliance with all provisions of the City Code. The licensee must either own the building in which the business is conducted or any approved off-site storage facility or have a lease of the facilities which extends for more than six months.

5-2726 Denial, Suspension, or Revocation.

(1) 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:

(a) the proposed use does not comply with the City of Coon Rapids Zoning Code.
(b) the proposed use does not comply with any health, building, building maintenance, or other provisions or state or local laws or ordinances.
(c) the applicant or licensee has violated any state statute regarding precious metal dealers.
(d) the applicant or licensee has violated any state or local law relating to moral character and repute.
(e) the applicant or licensee has failed to comply with one or more provisions of this Chapter.
(f) 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.
(g) the applicant or licensee has engaged in fraud, misrepresentation, or bribery in securing or renewing a license.
(h) the applicant or licensee has made fraudulent, misrepresentation, or false statements in the application and investigation for, or in the course of, the applicant’s or licensee’s business.
(i) the applicant or licensee has within the preceding five years violated any law relating to theft, damage or trespass to property, sale of a controlled substance, or the operation of a business.
(j) the owner of the premises licensed or proposed to be licensed would not qualify for a license under the terms of this Chapter.

(2) Any conviction by the precious metal dealer for theft, receiving stolen property, or any other crime or violation involving stolen property shall result in the immediate suspension pending a hearing or revocation of any license issued hereunder.
(3) Except in the case of a suspension pending a hearing on revocation, a revocation or suspension by the City Council shall be proceeded by written notice to the licensee and a hearing. The written notice shall give at least eight (8) days’ notice of the time and place of the hearing and shall state the nature of the charges against the precious metal dealer. The City Council may, without any notice, suspend any license pending a hearing on revocation for a period not exceeding thirty (30) days. The notice may be served upon the precious metal dealer by U.S. Mail addressed to the most recent address of the business as stated in the license application. The licensee or representative, may appear at the hearing with or without legal counsel, and may present evidence in opposition to the suspension or revocation.

5-2727 Penalties. In addition to other sanctions that may be imposed against a license under this Chapter, any violation of this Chapter is a misdemeanor.

5-2728 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. [Revised 11/17/98, Ordinance 1651]