§ 4-21. Licensing dealers of precious metals and gems.

(a) Dealers licensing. No person, firm or corporation shall operate or conduct a business for the purchase, sale, or trade of used precious metals and precious gems including but not limited to gold, silver, platinum, plated articles, diamonds, rubies, sapphires or opals in any form except coins or bullion which have been issued by any government or mint, without having first obtained a license therefor, and without complying with the provisions of this Section. Any person, firm or corporation that shall operate or conduct a business as set forth above shall be a "Dealer."

(b) Application. Applications for "Dealer" licenses shall be made to the Clerk-Treasurer in writing and shall state the full name and place of residence of the applicant or, if the applicant be a partnership, of each member thereof, or, if a corporation or association, of each officer thereof, together with the place or places where the business is to be conducted.

(c) License fee. Such application shall be accompanied by a registration fee of Twenty-five ($25.00) Dollars per annum for each place of business conducted by the licensee.

(d) Bond. The applicant shall, at the time of making such application, file with the City a bond, with one (1) or more sureties, in which the applicant shall be the licensee. Such bond shall be in the penal sum of Ten Thousand Dollars ($10,000.00) and shall be to the benefit of the City for its use and for the use of any person or person who may have a cause of action against the licensee of said bond under the provisions of this Section. Such bond shall be on the condition that said obligor will faithfully conform to and abide by the provisions of this Section and of all rules and regulations lawfully made by the City hereunder, and will pay to the City and to any such person or persons any and all money that may become due or owing to them from said licensee under and by virtue of the provisions of this Section. Such bond shall be in a form subject to the approval of the City Attorney. If the Clerk-Treasurer shall find at any time that the bond is insecure or exhausted or otherwise doubtful, an additional bond, to be in a form approved by the City Attorney, in the sum of not less than Ten Thousand ($10,000.00) Dollars shall be filed by the licensee within ten (10) days after the written demand upon the licensee by the City.

(e) Issuance of license. Upon the filing of such application, the payment of the license fee and the approval of such bond, the Clerk-Treasurer shall notify the Chief of Police. The Chief, or designee thereof, shall investigate the financial standing and character of the applicant, and of the members thereof, if the applicant be a partnership, and of the officers and directors thereof, if the applicant be a corporation and that the business will be operated honestly, fairly, and efficiently within the purpose of this Section. The Chief shall then report in writing to the Board of Public Works and Safety. The Board of Public Works and Safety shall issue a license authorizing the applicant to engage in the business of dealing within the definition of this Section. Such license shall remain in full force and effect until it is surrendered, revoked, or suspended. If the Board of Public Works and Safety shall find otherwise, it shall notify the Clerk-Treasurer, who shall notify the applicant of the denial and return to the applicant the bond and the sum paid by the applicant as a license fee. The Board of Public Works and Safety shall give every applicant a reasonable opportunity to be heard and shall approve or deny, by written order, every applicant for license within thirty (30) days from the hearing.

(f) Annual license fee. Every licensee shall, on or before the first day of December, pay to the Clerk-Treasurer the sum of two hundred fifty dollars ($250.00) as an annual license fee for the year commencing January first and shall at the same time file with the Clerk-Treasurer an application and bond in the same amount and of the same character as required by this Section for renewal application bonds accompanying the original application for a license. Said renewal shall be approved or rejected prior to December 31st.

(g) Revocation of license: grounds, procedure. The Common Council, upon recommendation by the Board of Public Works and Safety, shall, upon ten (10) days' notice to the licensee, stating the contemplated action and in general the grounds therefor, and after proper hearing, revoke, by written finding and determination, any license issued hereunder if it shall find that:

(1) The licensee has failed to pay the annual license fee or to maintain in effect the bond or bonds required to comply with any ruling or requirements of the ordinance lawfully made pursuant to and within the authority of this Section, or

(2) The licensee has violated any provision of this Section or any rule or regulation lawfully made under and within the authority of this Section, or

(3) Any fact or condition exists which, if it had existed at the time of the original application for such license, clearly would have warranted the Board of Public Works and Safety refusing originally to issue such license. All revocation or suspension hearings shall be conducted pursuant to the provisions of Sec. 4-3 of this Code.

(h) Effect of revocation, suspension or surrender of license. No revocation or suspension or surrender of any license shall impair or affect the obligation of any pre-existing lawful contract between the licensee and any client.

(i) Records. Every person, firm or corporation operating a business described in this Section shall keep a bound record of all scheduled articles purchased from the public. Such records shall show the date of purchase, the description, including any numbers and/or initials thereon, a photograph of the articles purchased, purchase price paid and the name and address of the person from whom purchased. The seller shall execute a document stating that they are eighteen (18) years of age and the property sold is theirs.

(j) Investigations. For the purpose of discovering violations and securing information lawfully required or otherwise necessary, the Police Department or a person or persons duly designated by it, may investigate and examine the bound record books and picture files that coincide with said purchase transactions. The duly designated representatives of the Police Department shall have and be given free access to the place of business and bound record books and photographs during the routine and normal course of business hours. The licensee shall keep said bound record books and photographs for a period of three (3) years after making final entry in same.

(k) Unlawful transaction. No licensee shall: (1) purchase or trade any article from a person under eighteen (18) years of age; or (2) purchase or trade any article from any person who is known by him to have been convicted of a violation of the Offenses Against Property Act or similar statute in any other jurisdiction or from any person whom he has reason to suspect or believe to be.

(1) Violation/penalty. Any person, firm, partnership or corporation or licensee convicted of violating any of the provisions of this Section shall be punishable by a fine not to exceed Five Hundred ($500.00) Dollars and any licensee violating the provisions of this Section shall be subject to revocation of his license(s).

(Ord. No. 81-36, § 5.06.070, 10-1-81)

(Ord. No. 81-36, § 5.06.080, 10-1-81)