Ord. 1486 2013-08-26 - Supp 5 ORDINANCE NO. 1486
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
PEARLAND, TEXAS, AMENDING CHAPTER 14, JUNK AND
JUNK DEALERS, TO ADOPT A NEW ARTICLE V, CRAFTED
PRECIOUS METALS DEALERS, OF THE CITY OF PEARLAND
CODE OF ORDINANCES; PROVIDING A PENALTY FOR
VIOLATION; HAVING A SAVINGS CLAUSE, A SEVERABILITY
CLAUSE, AND A REPEALER CLAUSE; PROVIDING FOR
PUBLICATION, CODIFICATION, AND AN EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PEARLAND,
TEXAS:
Section 1. That Chapter 14, Junk and Junk Dealers, of the City of
Pearland Code of Ordinances is hereby amended to add a new Article V, to be
entitled Crafted Precious Metals Dealers, to read as follows:
"ARTICLE V
CRAFTED PRECIOUS METALS DEALERS
Sec. 14-70. Definitions.
The following words, terms and phrases, when used in this article, shall have the
meanings assigned to them in this section, except where the context clearly
indicates a different meaning:
Crafted precious metal : means jewelry, silverware, an art object, or another
object made wholly or partly from precious metal, other than a coin, a bar, a
commemorative medallion, or scrap or a broken item selling at five percent
or more than the scrap value of the item.
Dealer : means a person licensed to engage in the business of purchasing
and selling crafted precious metal (including purchases or sales made
through the mail), except for coins, bars, commemorative medallions, or
items that the dealer purchases for five percent or more than the scrap
value.
Licensee: means any person licensed as a dealer pursuant to this article.
ORDINANCE NO. 1486
Permanent registered location: means a location where a crafted precious
metals dealer engages in the business of buying crafted precious metal for
one year or longer.
Precious metal: means gold, silver, platinum, palladium, iridium, rhodium,
osmium, ruthenium, or an alloy of those metals.
Scrap value: means the value at which an item would be purchased by a
person who will melt the item or otherwise transform it so that it will not be
used for its original purpose.
Tableware: means any flatware, dishes, serving pieces or other items
designed or intended to be used in connection with the serving or eating of
food when the items are made of any precious metal or wholly or partially
plated with a precious metal.
Temporary dealer : means any person who conducts business as a dealer
in the city for a period of time not to exceed one year but does not have a
permanent place of business in the city.
Sec. 14-71. License required; display, exceptions.
(a) No person shall operate as a dealer or own any such business or engage in
the business of buying, trading, or otherwise receiving jewelry, used tableware,
or other used items containing precious stones or made of or plated with
precious metals unless he is licensed pursuant to this article, is licensed as a
pawnbroker pursuant to the statutes of the state or is acting in the employment of
one licensed under one of the above-listed laws. A separate license shall be
required for each permanent location of any such business. A license issued
under this subsection shall be marked to indicate that the business is authorized
to deal only in the items listed in this article and shall be posted in a conspicuous
place upon the licensed premises.
(b) A dealer must provide and display valid city and state license numbers on
all forms of advertisement (i.e., print, video, internet, and radio) for business
conducted within the city limits.
(c) Exceptions to the applicability of this article are as provided in the Texas
Occupations Code, Chapter 1956, Subchapter B.
Sec. 14-72. Application for license.
(a) Any person desiring a license required by this article shall make application
therefor in writing to the chief of police on an application form provided for that
purpose. On the application, the applicant shall provide the following information:
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(1) The full name of the applicant, the street address where the business
is to be located, and the residence address of each owner, manager
and operator of the business;
(2) Whether any owner or operator is an individual, partnership,
corporation, or other legal entity; provided, however, that the type of
business organization shall include only those organizations
recognized by the Texas Business Organizations Code ("BOC") and
authorized to engage in the type of business covered by this article,
and if the organization is a foreign entity required to register under
Chapter 9 of the BOC, full and complete copies of the organization's
current registration;
(3) If any owner or operator is a corporation, all officers of the corporation;
and if there are fewer than five shareholders, the names of all
shareholders;
(4) If any owner or operator is a partnership, the type of partnership and
names and addresses of all general partners, and for limited
partnerships, the names and addresses of all members;
(5) If any owner or operator is an unincorporated association, the names
and addresses of all officers of the association;
(6) If any applicant does business under an assumed name as that term is
defined in Texas Business and Commerce Code section 71.002, all
assumed names used;
(7) The person responsible for the on-site day-to-day operation of the
applicant's permanent registered location and a person responsible for
each temporary location;
(8) The location where the business will be conducted, along with a copy
of the certificate of occupancy for the location;
(9) The time period or periods during which the business will be
conducted, including hours of operation;
(10) A copy of the certification of registration issued by the Office of
Consumer Credit Commissioner (OCCC) of the State of Texas; and
(11) Any other information reasonably required by the chief of police for the
purpose of processing the application under the requirements of this
article.
(b) The application form shall be accompanied by an affidavit, sworn to by the
applicant, (or declaration pursuant to Texas Civil Practice and Remedies Code §
132.001) acknowledging that the applicant:
(1) Including his business partners, and, in the case of a corporation, all
corporate officers, have not had a license revoked under this chapter
or any preceding city ordinance governing the business described
herein;
(2) Has read the application and agrees to all of its terms and provisions;
(3) Affirms the correctness and accuracy of the information given on the
application; and
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(4) Affirms that he has the authority to bind the applicant to all of the
terms, provisions and requirements of the application.
Sec. 14-73. Temporary license.
A temporary dealer who wishes to purchase crafted precious metals in the city
must apply for and secure a license for each location. An application for a
temporary dealer's license shall be submitted as required in Section 14-72, not
later than 30 business days prior to the desired effective date of the license, and
shall contain, for each location:
(a) The approximate dates and hours of operation for each temporary
location; and
(b) The name of the person responsible for on-site operations and
compliance with applicable laws at each temporary location.
Sec. 14-74. Issuance, denial, fees.
(a) Upon receipt of an application, the chief of police shall investigate the items
sworn to by affidavit or declaration. An application is complete when the
application contains the information required by this article and is accompanied
by the payment of the license fee.
(b) Within 30 days of receiving an incomplete application, the chief of police will
provide written notice to the applicant stating that the application is incomplete
and specifying the additional information required for completion. If the chief of
police requests additional information and the applicant does not respond within
30 days, the application will be considered withdrawn, and the applicant must
reapply to obtain a license.
(c) For temporary licenses, within ten business days of receiving an incomplete
application, the chief of police will provide written notice to the applicant stating
that the application is incomplete and specifying the additional information. If the
applicant does not respond within ten business days, the application will be
considered withdrawn, and the applicant must reapply to obtain a temporary
license.
(d) Upon receipt of a complete application for a temporary or permanent
license, the chief of police shall issue a license to the applicant unless:
(1) The information provided in the application is materially false or
incorrect;
(2) The applicant has violated the provisions of this chapter;
(3) The applicant, his business partners or corporate officers have had a
license revoked under this article or a preceding city ordinance
governing the business described herein within the last five years; or
(4) The applicant or any of the applicant's principals has a conviction
(which shall include a deferred adjudication) for any of the following:
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a. Any violation of the ordinances or statutes regulating the
purchase or sale of crafted precious metals.
b. Any offense involving fraud or misrepresentation.
c. Any offense involving theft, robbery, or burglary.
d. Any offense involving forgery.
e. Any offense involving a false report to a peace officer,
federal special investigator or law enforcement employee as
described in Chapter 37 of the Texas Penal Code.
f. Any offense involving tampering with or fabricating physical
evidence as described in Chapter 37 of the Texas Penal
Code.
g. Any offense involving tampering with a governmental record
as described in Chapter 37 of the Texas Penal Code.
(e) If the chief of police denies the application, he shall give written notice by
personal delivery or certified mail, return receipt requested, to the applicant at the
address stated in the application. The written notice shall specifically set forth the
reasons for the denial. The applicant may appeal the denial of a license to the
city manager by filing a written statement, within ten (10) days of the denial,
setting forth the reasons why the denial is erroneous. The city manager shall
issue a final decision within ten (10) days of the filing of an appeal, which
decision shall be final.
(f) The annual fee for a license issued pursuant to this article for a dealer with
a permanent place of business within the city is stated for this provision in the city
fee schedule. The license, unless revoked, shall be valid for one year from the
date of issuance.
(g) A temporary dealer shall pay the daily license fee for each show. The daily
license fee is stated for this provision in the city fee schedule.
Sec. 14-75. Change in business name or address; notice.
(a) Should any person licensed under this article move his permanent place of
business from the place designated in the license to a new address, he shall
immediately give written notice to the chief of police and have the change noted
on his license.
(b) The chief of police will rely on the mailing and e-mail addresses currently on
file to contact dealers. The failure to maintain a current mailing or e-mail address
with the chief of police is not a defense to any action based on a dealer's failure
to respond to notifications from the chief of police.
Sec. 14-76. Use of license at shows, other locations.
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Each licensee with a permanent business location in the city may use the license
for that business when attending shows or conducting business at other locations
in the city.
Sec. 14-77. Required recordkeeping; transaction report form, scrap value
estimation, receipt.
(a) A dealer shall keep at his place of business a record of all purchases of
crafted precious metals in a web-based database, in a form and method
approved by the chief of police. The record shall be updated daily, with a full
description in English of each transaction in which personal property is
purchased or otherwise received at the dealer's licensed place of business.
(b) The dealer must prepare a transaction report form for each transaction. The
report form shall be preprinted and pre-numbered, and shall contain all the
following information:
(1) The date of purchase.
(2) The name and address of the dealer's permanent business location.
(3) The name and address where the dealer purchased the crafted
precious metal, if the location is different than the dealer's permanent
business location and the transaction takes place in person.
(4) The dealer's registration number.
(5) The full name of the seller, as listed on the seller's driver's license or
personal identification certificate as defined by Texas Occupations
Code § 1956.001(8).
(6) A physical description of the seller to include date of birth, height, eye
color, and gender.
(7) The physical address where the seller is residing at the time of the
transaction.
(8) The seller's driver's license number or personal identification number
from the following unexpired forms of identification:
a. A driver's license number from Texas or another state within the
United States;
b. An identification card issued by the Texas Department of Public
Safety;
c. A United States military identification card; or
d. A United States passport or visa, or other identification issued by
the United States government as described in the administrative
rules promulgated pursuant to section 7-93 of this Code.
(9) A clear digital photograph of the seller, in accordance with the
administrative rules issued by the chief of police.
(10) A clear thumbprint from the seller.
(11) The seller's certification that the seller's name and address, as well as
the description of the crafted precious metal, are true and complete.
(12) The seller's representation that the seller has the right to possess and
sell the property.
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(13) A description of the crafted precious metal purchased by the dealer,
accompanied by a clear digital image of each item purchased,
including the:
a. Total number of items purchased by the dealer;
b. Type of each item (e.g., fork, tray, chain, ring);
c. Type, color and purity of each kind of metal purchased (e.g., 10
karat white gold, 0.925 sterling silver);
d. Weight in troy ounces, grams, or pennyweights for each kind of
metal;
e. Amount paid by the dealer for each kind of metal;
f. Color (e.g., clear, blue, green), number, and approximate size
(e.g. small, medium, large) of any stones and which item(s)
included those stones;
g. Size or length of each item (e.g., size 7, 18 inches);
h. Any discernible serial numbers;
i. Any engravings, inscriptions, distinctive markings, or designs;
j. Gender for which any jewelry item was manufactured, if
identifiable; and
k. Any unique markings that are not visible and identifiable from the
photographic images.
(14) The total amount paid to the seller by the dealer.
(15) The notice regarding oversight of precious metals dealers by the
state's Office of Consumer Credit Commissioner and the office's
contact information for consumer complaints as required by Title 7 of
the Texas Administrative Code, Part 5, Ch. 85, Subch. B, Div. 2, Rule
85.2001(a).
(16) Additional information is permissible on the transaction report form as
long as it is not misleading with respect to rights arising under the law.
(c) The dealer shall maintain a scrap value estimation record for each purchase
of crafted precious metal, including a reasonable good faith estimate of the each
item's scrap value or the percentage of scrap value that the dealer will pay the
seller. The scrap value estimation is not required on the seller's receipt copy of
the transaction report form, but must be included on the dealer's copy, which
must be maintained for a period of not less than three years, pursuant to Texas
Occupations Code § 1956.063.
(d) The dealer shall submit the required records to the web-based database by
the close of business on each day on which the dealer is open for business.
Failure to comply with any provision of this section shall be grounds for the
revocation of or the refusal to issue or renew a dealer's license. Any person
violating any provision of this section shall be punished as provided by section 1-
11 of this code.
(e) The dealer, his agents, or employees shall supply a consecutively-
numbered receipt to the seller or transferor of the property. The receipt shall be
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dated on the actual date of the transaction and shall list the items sold or
otherwise transferred. A printed version of the record input to the web-based
database shall satisfy this requirement. An accurate copy or record of receipts
shall be retained for a period of not less than three years.
(f) A dealer and every person engaged in the business of buying, trading or
otherwise receiving crafted precious metals in any form shall, upon request,
submit and exhibit the various business records required to be maintained under
this section for inspection and copying to any peace officer or authorized
inspector of the chief of police. Failure to maintain or to so permit the
examination or copying of the records when requested shall be a misdemeanor.
Sec. 14-78. Stock to be open for examination.
The stock or inventory of any dealer that is openly displayed and available to the
public shall at any time during ordinary business hours be accessible for
examination by any peace officer or authorized inspector of the department of
administration and regulatory affairs. Failure to permit an examination when
requested shall be a misdemeanor.
Sec. 14-79. Articles to be retained, placed on hold, exceptions.
(a) No dealer shall sell, dismantle, deface, melt, or in any manner alter or
dispose of any item purchased or otherwise received at the dealer's licensed
place of business for eleven days after receipt. During the eleven-day period, all
items of property shall be stored or displayed at the dealer's permanent business
location or in a secure location readily accessible to the dealer, in the exact form
received, and in a manner so as to be identifiable from the description entered in
the record book. The property shall not be kept so as to prevent or impede its
examination hereunder and shall be available for inspection by a peace officer
within 24 hours of a peace officer's request to inspect the property.
(b) A dealer may not melt, deface, alter, or dispose of crafted precious metal
received by the dealer before the 11th day after the required report is filed
unless:
(1) The peace officer to whom the report is submitted, for good cause,
authorizes the disposition of the metal;
(2) The dealer obtains the name, address, and description and other
information pertaining to the buyer as required in section 7-88(b) of this
article and retains a record of that information; or
(3) The dealer is a pawnbroker and the disposition is the redemption of
pledged property by the pledger.
(c) A peace officer who has a reasonable suspicion that an item of crafted
precious metal in a dealer's possession is stolen may place the item on hold for a
period not to exceed 60 days by issuing to the dealer a written notice that
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specifically identifies the item alleged to be stolen and subject to the hold, and
informs the dealer of the requirements of this section.
(d) On receiving notice from a peace officer that an item is placed on hold, the
dealer may not melt, deface, alter, or dispose of the identified crafted precious
metal until the hold is released in writing by a peace officer of this state or by
court order.
(e) Failure to comply with any provision of this section shall be grounds for the
revocation of or the refusal to issue or renew any license required of a dealer
under this Code. Any person violating any provision of this section shall be
punished as provided by section 1-11 of this Code.
Sec. 14-80. Purchasing or receiving goods from minors.
No dealer shall purchase or otherwise receive in the course of his business any
item, ownership of which is claimed by any minor, or which may be in the
possession of or under control of a minor, unless the minor's parent or guardian
shall state in writing, that the transaction is taking place with the parent's or
guardian's full knowledge and consent. It shall be the duty of the dealer to
preserve and keep on file, and available for inspection, the written statements of
consent, for a period of three years.
Sec. 14-81. Revocation of license.
(a) A license may be revoked, after provision to the licensee of written notice
and an opportunity to be heard by the chief of police, for the following cause:
(1) Any information supplied in the permit application was materially false
or incorrect;
(2) The license was issued as a result of error;
(3) The licensee has failed to operate in compliance with any applicable
provision of the license or this chapter; or
(4) The licensee has violated the provisions of this chapter, or is not in
compliance with the criminal history provisions of section 14-74 (d) (4)
of this Article.
(b) A dealer whose registration has been revoked may not reapply for five years
from the date of revocation.
Sec. 14-82. Administrative rules.
The chief of police shall promulgate rules and regulations to administer the
provisions of this ordinance. The rules and regulations shall not conflict with any
applicable provisions of this Code. All rules and regulations so promulgated shall
be kept on file for public inspection at the office of the chief of police.
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Secs. 14-83-14-89. Reserved."
Section 2. Savings. All rights and remedies which have accrued in
favor of the City under this Ordinance and amendments thereto shall be and are
preserved for the benefit of the City.
Section 3. Severability. If any section, subsection, sentence, clause,
phrase or portion of this Ordinance is for any reason held invalid, unconstitutional
or otherwise unenforceable by any court of competent jurisdiction, such portion
shall be deemed a separate, distinct, and independent provision and such
holding shall not affect the validity of the remaining portions thereof.
Section 4. Repealer. All ordinances and parts of ordinances in conflict
herewith are hereby repealed but only to the extent of such conflict.
Section 5. Codification. It is the intent of the City Council of the City of
Pearland, Texas, that the provisions of this Ordinance shall be codified in the
City's official Code of Ordinances as provided hereinabove.
Section 6. Publication and Effective Date. The City Secretary shall
cause this Ordinance, or its caption, to be published in the official newspaper of
the City of Pearland, upon passage of such Ordinance. The Ordinance shall
then become effective on September 1st, 2013, after its publication, or the
publication of its caption, in the official City newspaper.
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then become effective on September 1st, 2013, after its publication, or the
publication of its caption, in the official City newspaper.
PASSED and APPROVED ON FIRST READING this the 12th day of
August, A. D., 2013.
TOM REID
MAYOR
ATTEST:
•
Y• LNG Ley FING,TR1/C I ,v`. " /col.
C7 SEC TARY
PASSED and APPROVED ON SECOND AND FINAL READING this the
26th day of August, A. D., 2013.
TOM REID
-,, MAYOR
ATTEST:
77 mss
,/ :ter
VOTING RECORD SECOND AND FINAL READING
`, NG �i G, T' August 26,2013
TY SE RETARY Voting"Aye"—Councilmembers Carbone, Sherman, Hill,
Ordeneaux and Sherrouse.
Voting"No"-None.
APPROVED AS TO FORM Motion passes 5 to 0.
PUBLICATION DATE: August 29, 2013
( C-C1 EFFECTIVE DATE: September 1,2013
DARRIN M. COKER PUBLISHED AS REQUIRED BY SECTION 3.10
CITY ATTORNEY OF THE CHARTER OF THE CITY OF PEARLAND,TEXAS
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STATE OF TEXAS
COUNTY OF BRAZORIA
Personally appeared before the undersigned, a Notary Public within and for said
County and State. Buzz Crainer, Representative for Brenda Miller Fergerson, Publisher of the
Pearland Journal, a newspaper of general circulation in the County of Brazoria, State of Texas.
Who being duly sworn, states under oath that the report of Legal Notice, a true copy of
Which is hereto annexed was published in said newspapers in its issue(s) of August 29, 2013.
Publi• er's Representative
Sworn to and subscribed before me this So day of fit) , 2013.
Notar y Public
My commission expires on don. 14 22o I (0 i l " '
SARAH REBECCA FERGUSON
MY COMMISSION EXPIRES
=`"'v f. January 17,2016