29. O. ARLINGTON COUNTY, VIRGINIA. County Board Agenda Item Meeting of February 25, DATE: January 25, 2017

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1 ARLINGTON COUNTY, VIRGINIA County Board Agenda Item Meeting of February 25, 2017 DATE: January 25, 2017 SUBJECT: Request to authorize advertisement of a public hearing to consider an ordinance to Amend, Reenact, and Recodify Chapter 62 (Pawnbrokers and Dealers in Secondhand Articles) of the Code of Arlington County, Virginia, to amend Section 62-1 through and consider changes to the Pawnbrokers and Dealers in Secondhand Articles application and renewal fees. C. M. RECOMMENDATION: Authorize the advertisement of a public hearing on March 30, 2017 to consider: 1. The adoption of amendments to Chapter 62 (Pawnbrokers and Dealers in Secondhand Articles) of the Code of Arlington County, Virginia, to amend Section 62-1 through pursuant to the authority of Chapter 12, Title 15.2; Chapter 9, Title 59.1; Chapter 41, Title 54.1 and Chapter 41, Title 54.1 of the Code of Virginia, 1950, as amended and 2. Changes to the ACPD Pawnbrokers and Dealers in Secondhand Articles application and renewal fees. ISSUES: County Board approval is required for advertisement of public hearing for the proposed code changes that will more closely align Chapter 62 of the County Code to the Code of Virginia et seq. (1950) and et seq. (1950). Also, as part of the annual budget process, authorization from the County Board is being requested to advertise a public hearing on the proposed FY 2018 Pawnbrokers and Dealers in Secondhand Articles application and renewal fees. SUMMARY: Chapter 62 (Pawnbrokers and Dealers in Secondhand Articles) of the Arlington County Code has been amended to more closely conform to the Code of Virginia in et seq. (1950) and et seq. (1950), which provides the authority for the county to regulate pawnshops, secondhand dealers, and precious metals dealers, and to more effectively maintain the safety and welfare of the community. Additionally, this code change increases the fees associated with the renewal of permits for pawnshops, secondhand dealers, and precious metals dealers licenses from $10 to $200 to better recover costs. County Manager: ##### County Attorney: ***** 29. O. Staff: Lt. Dan Murphy, Police

2 BACKGROUND: Requiring pawnbrokers, secondhand dealers, and precious metals dealers to be licensed and to coordinate all purchases and sales of secondhand articles and precious metals with the police department reduces the likelihood that criminals will traffic in stolen items. It also provides law enforcement with the ability to trace an item to a seller. Currently, new applicants for this license pay a $200 fee. Applicants renewing their license pay an annual $10 fee. Fourteen businesses meet the current pawnbrokers, secondhand dealers, and precious metals dealer criteria. DISCUSSION: The proposed amendments to Chapter 62 (Pawnbrokers and Dealers in Secondhand Articles) creates an ordinance divided into six articles that are essential in providing law enforcement with the means to effectively monitor and regulate pawnshops, precious metals dealers, firearms dealers, itinerant merchants, and secondhand dealers in an efficient and effective manner: Article I. General Provisions outlines the County s authority to develop a local ordinance related to pawnbrokers and is accompanied by relevant definitions that support the clarification of the subject matter found in Article II. Pawnbrokers. Article II. Pawnbrokers delineates licensing requirements, required bonds, daily reports, etc., related to the lawful operation of a pawnshop in Arlington County. Article III. Precious Metal Dealers outlines the County s authority to develop a local ordinance related to precious metals dealers and is accompanied by relevant definitions and the prerequisites to operating as a legitimate precious metals dealer in Arlington County. Article IV. Dealers in Firearms fundamentally outlines firearms transactions conducted by firearms dealers in Arlington County along with the prerequisite that records related to firearms transactions be retained and made available to law enforcement for inspection. Additionally, it provides guidance related to the promotion of any gun show in the County along with guidance on background checks connected to the purchase of a firearm. Article V. Itinerant Merchant provides guidance on records that must be kept and items that may not be offered for sale along with the penalties for any violation. Article VI. Secondhand Dealers covers licensing requirements, transactions involving watches, building fixtures, scrap metal, reporting requirements and penalties. An essential update to the code was the redevelopment of the definition of secondhand articles to include computers, cameras, bicycles, musical instruments, power tools, etc. The expansion of the definition may result in approximately ten additional businesses meeting the criteria of pawnbrokers, secondhand dealers, and precious metals dealer. This is significant because the regional pawn data sharing system for the Metropolitan Washington region known as RAPIDS (Regional Automated Property Information Database System) requires this data in order to be effective as a point-of-sale system that gathers and monitors transaction data streamlining the process of searching for stolen or missing items. Additionally, the Police Department uses RAPIDS as an investigative tool in criminal cases related to burglary and trafficking in stolen property, which often leads to the identification and prosecution of offenders as well as the return of recovered stolen property to crime victims

3 The use of RAPIDS requires pawnbrokers, secondhand dealers, and dealers in precious metals and gems to have access to a computer system and the internet. Each dealer is set up with their own RAPIDS account allowing them to upload their data electronically and access their own information which is stored on a secure server. RAPIDS also assists in simplifying compliance with state and local laws related to pawnshops, secondhand dealers, and precious metal dealers. All pawnbrokers, secondhand dealers, and dealers in precious metals are required to obtain a license/permit issued by the police department. The proposed amendements to the ordinance do not change the initial license/permit application fee $200. However, the fee for renewals will increase from $10 to $200. The proposed fee primarily offsets the cost of the associated with the use of RAPIDS application which is approximately $220 annually per shop. In setting the proposed fees, research was conducted to examine what surrounding jurisdictions were charging for the same license/permit and a majority of jurisdictions were in the $200-$250 range. FISCAL IMPACT: Dealer fees related pawnbrokers, secondhand dealers, and precious metals dealer are expected to generate $4,200 in revenue. The proposed fee is in the County Manager s FY 2018 Proposed Budget. While the fee is expected to generate $4,200 in revenue, it is offset by expenses of $4,620 to pay for the RAPIDS software leaving a net tax support reduction of $420. There is an assumed reduction in net tax support because the ACPD must pay for the RAPIDS license for each registered dealer. There is currently no revenue budgeted for this fee because the current code limited the definition pawnbrokers, secondhand dealers, and dealers in precious metals of ACPD

4 AMENDMENT TO CHAPTER 62 THE ARLINGTON COUNTY CODE TO INCLUDE THE ADDITION OF THE REGULATION OF PRECIOUS METALS DEALERS, REVISED DEFINITIONS, AND MANDATORY ELECTRONIC REPORTING EFFECTIVE APRIL 22, 2017 BE IT ORDAINED by the County Board of Arlington County, Virginia that Chapter 62, Section 62-1 through Section 62-12, of the Arlington County Code is amended, reenacted and recodified, effective April 22, 2017, to read in pertinent part, as follows: * * * ARLINGTON COUNTY CODE Chapter 62 PAWNBROKERS AND PRECIOUS METALS DEALERS, DEALERS IN FIREARMS, ITINERANT MERCHANTS, AND DEALERS IN SECONDHAND ARTICLES ARTICLE I. GENERAL PROVISIONS Policy. Authority Definitions. ARTICLE II. PAWNBROKERS Inspection of Identifying Credentials. License Required; License Authorized by Court; Building Designated in License; Penalty Records to be Kept by Pawnbrokers and Merchants. Bond Required; Private Action on Bond Report of Pawns and Purchases to be Furnished to the Chief of Police. Memorandum to be Given Pledgor; Fee; Lost Ticket Charge Injuring, Concealing, Etc., Property Received on Deposit or Pledge by Pawnbrokers; Removing, Changing, Etc., Serial or Identification Numbers. Sale of Goods Pawned Inspection of Premises; Warrantless Search and Seizure Authorized. Interest Chargeable Purchase from Minors. Records of Transactions; Identification of Person Pawning Goods; Fee; Penalty Purchases to be Retained for Inspection. Daily Reports Permit Required. Officers May Examine Records or Property; Warrantless Search and Seizure Authorized To Whom License Issued. Property Pawned or Purchased Not to be Disfigured or Changed How Permits Are Obtained. Care of Tangible Personal Property; Evaluation Fee

5 False Statements on Application. Penalties. ARTICLE III. PRECIOUS METALS DEALERS Bond Requirement. Authority Revocation of Permit. Definitions Penalties. Records to be Kept; Copy Furnished to Chief of Police Severability. Officers May Examine records or Property; Warrantless Search and Seizure Authorized Credentials and Statement of Ownership Required from Seller Prohibited Purchases Dealer to Retain Purchases Record of Disposition Bond or Letter of Credit Required of Dealers When Permit Obtained Private Action on Bond or Letter of Credit Permit Required; Method of Obtaining Permit; No Convictions of Certain Crimes; Approval of Weighing Devices; Renewal; Permanent Location Required Penalties; First and Subsequent Offenses. ARTICLE IV. DEALERS IN FIREARMS Definitions Inspection of Records Notification of Firearms Show; Records; Penalty Firearms Transactions by Persons Other Than Dealers; Voluntary Background Checks Penalties. ARTICLE V. ITINERANT MERCHANTS Records to be Kept; Officer May Examine Records Prohibited Sale of Certain Merchandise Penalty. ARTICLE VI. SECONDHAND DEALERS License Required Watches Penalties Building Fixtures Dealers Permit Required Who Deemed Building Fixtures Dealer; Requirement to Show Permit Building Fixture Dealers Record Keeping Requirements Building Fixture Dealers Reports to Sheriff Required

6 Building Fixture Dealers Books and Place of Business Inspection Exemptions to Building Fixture Dealer Requirements Building Fixture Dealer Penalties Scrap Metal Purchasers Scrap Metal Purchaser Report of Purchases Scrap Metal Purchaser Penalties Scrap Metal Dealer Exemptions. ARTICLE I. GENERAL PROVISIONS Policy. Authority. It is hereby declared to be the policy of the County of Arlington, in the exercise of its police power for the protection of the safety, health and welfare of its citizens, to regulate the purchase and sale of secondhand articles by pawnbrokers and other merchants. This article is adopted pursuant to the authority of Chapter 12, Title 15.2; Chapter 9, Title 59.1; and Chapter 40, Title 54.1 of the Code of Virginia, 1950, as amended. ( ) Definitions. For the purpose of this chapter, the The following words and terms, when used in this chapter, shall have the following meanings unless the context clearly indicates otherwise a different meaning: Established merchant means any merchant which has been continuously conducting its business at the same fixed address in Arlington County for a period of not less than sixty (60) calendar days and for not less than five (5) days in any calendar week prior to applying for a license required by this chapter; provided, however, if such merchant has been continuously conducting its business in Arlington County for the twelve (12) month period prior to such application, it qualifies as an established merchant even if it has changed addresses, so long as it has not changed addresses more than once. Any employee or agent who does the foregoing acts on behalf of his employee or principal and any partner or principal of any legal entity shall also be considered an established merchant. Gem means any item containing precious or semiprecious stones customarily used in jewelry. Itinerant merchant means any merchant who is not an established merchant. Any employee or agent who does the foregoing acts on behalf of his employer or principal and any partner or principal of any legal entity shall also be considered an itinerant merchant. Merchant means any person, partnership, corporation or other legal entity who either purchases secondhand articles for profit, or for a fee accepts secondhand articles for sale on consignment. Any employee or agent who does the foregoing above mentioned acts on behalf of his employer or principal and any partner or principal of any legal entity shall also be considered - 6 -

7 a merchant. Pawnbroker means any person who shall in any manner lend or advance money or other things for profit on the pledge or possession of personal property, or other valuable things, other than securities or written or printed evidences of indebtedness, or who deals in the purchasing of personal property or other valuable things on condition of selling the same back to the seller at a stipulated price. Any employee or agent who does the foregoing above mentioned acts on behalf of his employer or principal, and any partner or principal of any legal entity shall also be considered a pawnbroker. Precious metal means any item, except coins, composed in whole or in part of gold, silver, platinum, or platinum alloys. Secondhand articles means any of the following items of personal property or objects of value, previously owned or used, which are not purchased or sold as new such as: (1) Gold, silver, platinum, or platinum alloy, except coins, in any chemical, physical, or other form; (2) Watches and clocks; (3) Stamps, stamp collections and commemorative issues; (4) Currency and mint sets excluding coins; (5) Figurines, defined as china, or other objects painted or made that are valuable primarily by reason of age, scarcity, or the skill and craftsmanship of the artist or artisan; (6) Paintings; (7) Jewelry, gems, semiprecious stones; (8) Electronic or electrical appliances, typewriters, business machines, and equipment, excluding those that are traded in on new appliances. Computers, including their components and parts. This shall include, but not be limited to, personal computers (PCs), laptops and tablet devices; printers, scanners, monitors, webcams, speakers, hard drives, and digital storage devices; Any other electronic device capable of capturing, sending, receiving, storing, recording, or playing data or digital media; (9) Bicycles. (10) Musical instruments; (11) Power tools; (12) Small home appliances, including vacuum cleaners, steam cleaners, televisions, coffee makers, and microwaves; - 7 -

8 Secondhand articles do not include property purchased by one established merchant from another within or without Arlington County in the normal course of business. Secondhand dealer means any person who buys, sells, barters or exchanges used or secondhand articles. ( ; Ord. No , ; Ord. No , ) ARTICLE II. PAWNBROKERS Inspection of Identifying Credentials. License Required; License Authorized by Court; Building Designated in License; Penalty. It shall be unlawful for any pawnbroker or merchant dealing in secondhand articles to take in pawn, buy or exchange any such articles prior to examining the identifying credentials of the person pawning, selling or exchanging said articles. The pawnbroker or merchant shall be deemed to be in compliance with this section if they are in compliance with of the Code of Virginia of 1950, as amended. ( ; Ord. No , ; Ord. No , ) A. No person shall engage in the business of a pawnbroker without having a valid license authorized by the Arlington County Circuit Court and issued by the County Police Department. B. Prior to the issuance of the license, the applicant shall complete an application on a form provided by the police department, which shall require the applicant to furnish his full name, aliases, address, date of birth, driver's license number, sex, fingerprints and photograph; the name, address and telephone number of the applicant's employer; the proposed location of the applicant's place of business; a statement of whether the applicant will purchase, sell or take possession of firearms; and certification from the zoning administrator or his designee that operation of the business of a pawnbroker at the proposed location is a permitted use of the premises. C. Upon furnishing the court order authorizing the County Police Department to issue a pawnbroker license, filing the completed application and paying an application fee of two hundred dollars ($200.00), the applicant shall be issued a license by the County Police Department, provided that the applicant has not been convicted of a felony or a crime of moral turpitude within ten (10) years prior to the date of application. The license may be denied if the applicant has been denied a license or has had a license revoked under any ordinance similar in substance to this article. D. The license shall be valid for twelve (12) months from the date issued, and may be renewed in the same manner as the initial license was obtained, with an annual license fee of two hundred dollars ($200.00). No license shall be transferable

9 E. The license shall designate the building in which the licensee shall carry on business. No person shall engage in the business of a pawnbroker in any location other than the one designated in his or her license. F. In addition to any other penalties prescribed under state law, any person who violates the provisions of this section shall be guilty of a Class 1 misdemeanor. Each day's violation shall constitute a separate offense Records to be Kept by Pawnbrokers and Merchants. Bond Required; Private Action on Bond. A. Every pawnbroker and merchant dealing in secondhand articles shall keep at his place of business an accurate and legible record of each loan, transaction or purchase in the course of business. The record of each purchase of precious metal or gem shall be retained by the dealer for at least twenty-four (24) months. The account shall be recorded at the time of the loan, transaction or purchase, and shall include: 1. A complete description, including all names, initials or other identifying marks or monograms, serial number, true weight or carat of any gem, purchase price, and a statement of ownership of the goods, article or thing pawned or pledged or received on account of money loaned thereon, or bought or received in exchange; 2. The time, date and place of the transaction; 3. The full name, residence address, work place, and home and work telephone numbers of the person pawning or pledging or selling the goods, article or thing, together with a particular description, including the height, weight, date of birth, race, gender, hair and eye color, and any other identifying marks of such person; 4. The amount of any money loaned thereon at the time of pledging the same; 5. The rate of interest to be paid on any loan; 6. Verification of the identification by exhibition of a government-issued identification card such as a driver's license or military identification card. The record shall contain the type of identification exhibited, the issuing agency and the number thereon; 7. The terms and conditions of any loan, including the period for which any such loan may be made; and 8. All other facts and circumstances respecting any loan. B. The records described in this section shall be available for inspection during regular business hours by the Chief of Police or his designee. ( ; Ord. No , ; Ord. No , ) A. No person shall be licensed as a pawnbroker or engage in the business of a - 9 -

10 pawnbroker without having in existence a bond with surety in the minimum amount of $50,000 to secure the payment of any judgment recovered under the provisions of subsection B. B. Any person who recovers a judgment against a licensed pawnbroker for the pawnbroker's misconduct may maintain an action in his own name upon the bond of the pawnbroker or secondhand dealer if the execution issued upon such judgment is wholly or partially unsatisfied Report of Pawns and Purchases to be Furnished to the Chief of Police. Memorandum to be Given Pledgor; Fee; Lost Ticket Charge. A. All pawnbrokers and merchants dealing in secondhand articles shall furnish daily to the Chief of Police, upon forms to be prescribed by him, a record of all articles taken in pawn or bought or exchanged by such dealers. Reports of articles taken into pawn shall be filed by 12:00 noon of the day following the pawn or pledge. Reports of articles bought or exchanged by merchants shall be conveyed within twenty-four (24) hours of the time of the purchase or exchange. Reports of such transactions occurring on weekends or holidays shall be conveyed to the Chief of Police on the following business day. Such forms shall contain all the information required by subsections 62-4.A.1, 2 and 3. B. In the event stolen property or property believed to be stolen is located in the custody of a licensed merchant, the Chief of Police or his designee shall notify the merchant that the article or articles are stolen. No such article or articles shall be removed from the location specified on the business license until authorized by the Chief of Police or his designee. ( ; Ord. No , ; Ord. No , ) Every pawnbroker shall at the time of each loan deliver to the person pawning or pledging anything, a memorandum or note, signed by him, containing the information required by A lost-ticket fee of not more than five dollars ($5.00) may be charged, provided that the pawner is notified of the fee on the ticket Injuring, Concealing, Etc., Property Received on Deposit or Pledge by Pawnbrokers; Removing, Changing, Etc., Serial or Identification Numbers. Sale of Goods Pawned. A. No secondhand articles of any kind received on deposit or pledge by any pawnbroker or merchant shall be disfigured or its identity destroyed, changed or modified in any manner whatsoever so long as it continues in pawn or in the possession or such pawnbroker or merchant, nor shall any article be removed from the premises where received for any reason for a period of fifteen (15) days after the same shall have been received by such pawnbroker or merchant, unless redeemed by the pledger or seized by the police as stolen property, without the permission of the Chief of Police or his designee. B. It shall be unlawful for any pawnbroker or merchant dealing in secondhand articles to remove, change, alter or conceal any serial or other identification number which may be attached or affixed to any property of any kind received by such person, without the consent of the Chief of Police or his designee. Nor shall such person knowingly take in pawn, buy,

11 exchange or keep in his possession any such property, the serial or other identification number of which has been removed, changed or altered, without the consent of the Chief of Police or his designee of any article offered for pawn, sale or exchange whose serial number or other identification number or name has been removed, changed or altered. ( ) No pawnbroker shall sell any pawn or pledge item until (i) it has been in his possession for the minimum term set forth in the memorandum, but not less than 30 days, plus a grace period of 15 days and (ii) a statement of ownership is obtained from the pawner. If a motor vehicle is pawned, the owner of the motor vehicle shall comply with all requirements of the Commonwealth regarding such transactions Inspection of Premises; Warrantless Search and Seizure Authorized. Interest Chargeable. Every pawnbroker or merchant dealing in secondhand articles and every employee of such pawnbroker or merchant shall admit to his place of business, during regular work hours, the Chief of Police or his agent or any law enforcement official of the state or federal government, shall permit such officer to examine all records required to be maintained under 62-4, and shall permit the officer to examine any article listed in a record which is believed by the officer to be missing or stolen and to search for and take into possession any article known to him to be missing or known or believed by him to have been stolen. ( ; Ord. No. 90-2, ; Ord. No , ) No pawnbroker shall ask, demand or receive a greater rate of interest than ten percent (10%) per month on a loan of twenty-five dollars ($25.00) or less, or seven percent (7%) per month on a loan of more than twenty-five dollars ($25.00) and less than one hundred dollars ($100.00), or five percent (5%) per month on a loan of one hundred dollars ($100.00) or more, secured by a pledge of tangible personal property. No loan shall be divided for the purpose of increasing the percentage to be paid the pawnbroker. Loans may be renewed based on the original loan amount. Loans may not be issued that compound the interest or storage fees from previous loans on the same item Purchase from Minors. Records of Transactions; Identification of Person Pawning Goods; Fee; Penalty. It shall be unlawful for any pawnbroker or merchant dealing in secondhand articles to take in pawn, buy or exchange any article of any kind from a person under eighteen (18) years of age. ( ) A. Every pawnbroker or secondhand dealer shall keep at his place of business an accurate and legible record of each loan or transaction in the course of his business, including transactions in which secondhand goods, wares, or merchandise is purchased for resale. The account shall be recorded at the time of the loan or transaction on a form approved by the chief of police and shall include:

12 1. A description, serial number, and a statement of ownership of the goods, article, or thing pawned or pledged or received on account of money loaned thereon or purchased for resale; A clear, legible, digital image of the item(s) being sold or pawned if they lack a serial number. 2. The time, date, and place of the transaction; 3. The amount of money loaned thereon at the time of pledging the same or paid as the purchase price; 4. The rate of interest to be paid on such loan; 5. The fees charged by the pawnbroker, itemizing each fee charged; 6. The full name, residence address, telephone number, and driver's license number or other form of identification of the person pawning or pledging or selling the goods, article, or thing, together with a particular description, including the height, weight, date of birth, race, gender, hair and eye color, and any other identifying marks, of such person; 7. Verification of the identification by the exhibition of a government-issued identification card bearing a photograph of the person pawning, pledging, or selling the goods, article, or thing, such as a driver's license or military identification card. The record shall contain the type of identification exhibited, the issuing agency, and the number thereon; No identification card, presented to a pawnbroker shall be considered valid if presented after its date of expiration. 8. A clear, legible, digital image of the form of identification used by the person involved in the transaction; A new copy of this image shall be taken each time a new transaction is conducted. At no time shall an image of an identification presented on a prior occasion be used to conduct a new transaction. 9. As to loans, the terms and conditions of the loan, including the period for which any such loan may be made; and 10. All other facts and circumstances respecting such loan or purchase. B. A pawnbroker shall maintain at his place of business an electronic record of each transaction involving goods, articles, or things pawned or pledged or purchased. A pawnbroker shall retain the electronic records for at least one year after the date of the transaction and make such electronic records available to any duly authorized law-enforcement officer upon request. C. For each loan or transaction, a pawnbroker may charge a service fee for making the daily electronic reports to the appropriate law-enforcement officers as required by 62-9, creating and maintaining the electronic records required under this section, and investigating the legal title to property being pawned or pledged or purchased. Such fee shall not exceed five percent (5%) of the amount loaned on such item or paid by the pawnbroker for such item or three

13 dollars ($3.00), whichever is less. Any person, firm, or corporation violating any of the provisions of this section is guilty of a Class 4 misdemeanor. D. No goods, article, or thing shall be pawned or pledged or received on account of money loaned or purchased for resale if the original serial number affixed to the goods, article, or thing has been removed, defaced, or altered Purchases to be Retained for Inspection. Daily Reports. Every pawnbroker and merchant dealing in secondhand articles shall retain in his possession, at the location specified in his business license, and open to the inspection of the Chief of Police or any designated member of the Arlington Police Department, all such articles so purchased or acquired by such person for at least fifteen (15) days before disposing of the same, unless otherwise authorized by the Chief of Police or his designee. ( ) A. Every pawnbroker shall prepare a daily report of all goods, articles, or things pawned or pledged with him or sold to him that day and shall file such report by noon of the following day with the chief of police or designated agent. The report shall include the pledgor's or seller's name, residence, and driver's license number or other form of identification; a photograph or digital image of the form of identification used by the pledgor or seller; and a description of the goods, articles, or other things pledged or sold. Daily reports shall be filed electronically through the use of a disk, electronic transmission, or any other electronic means of reporting approved by the chief of police. B. Any person, firm, or corporation violating any of the provisions of this section is guilty of a Class 4 misdemeanor Permit Required. Officers May Examine Records or Property; Warrantless Search and Seizure Authorized. No pawnbroker or merchant shall transact any business, regardless of the quantity, in the County of Arlington of buying or acquiring secondhand articles without first obtaining a permit therefor from the Chief of Police or his designee. Such permit shall be necessary in addition to any required business license. ( ) Every pawnbroker and every employee of the pawnbroker or secondhand dealer shall admit to the pawnbroker's or secondhand dealer s place of business during regular business hours, any duly authorized law-enforcement officer of the jurisdiction where the business is being conducted, or any law-enforcement official of the state or federal government. The pawnbroker or secondhand dealer or employee shall permit the officer to (i) examine all records required by this chapter and any article listed in a record which is believed by the officer to be missing or stolen and (ii) search for and take into possession any article known to him to be missing, or known or believed by him to have been stolen. However, the officer shall not take possession of any article without providing to the pawnbroker or secondhand dealer a receipt

14 To Whom License Issued. Property Pawned or Purchased Not to be Disfigured or Changed. The Chief of Police or his designee shall grant a permit to any established merchant, as defined above, or any person seeking to become an established merchant in Arlington County desiring to engage in the business of buying or acquiring secondhand articles upon proof of good character. Permits shall be issued to itinerant merchants upon proof of good character, designation of the premises on which the person shall conduct business and specification of the date or dates upon which such business shall be conducted. Good character shall be considered proved if neither the merchant, or any of its principals, agents or employees who perform any functions related to the activities regulated by this chapter, have been convicted of any crime involving moral turpitude within the last ten (10) years if the crime was a felony and within five (5) years if the crime was a misdemeanor. The burden shall be on the merchant to prove good character, and any applicant shall produce necessary releases, so appropriate record checks can be made. ( ) No property received on deposit or pledged or purchased by any pawnbroker shall be disfigured or its identity destroyed or affected in any manner (i) so long as it continues in pawn or in the possession of the pawnbroker while in pawn or (ii) in an effort to obtain a serial number or other information for identification purposes How Permits Are Obtained. Care of Tangible Personal Property; Evaluation Fee. The Chief of Police, or his designee, shall process applications on Monday through Friday between the hours of 8:00 a.m. and 4:00 p.m. at the Police Department. Permits shall be issued to established merchants, as defined above, for a charge of ten dollars ($10.00). Itinerant merchants and persons desiring to become an established merchant shall pay a fee of fifty dollars ($50.00), payable to the Treasurer of Arlington County, for such permit. Permits issued to established merchants shall be valid indefinitely, provided that such merchant does not change the nature of his business or its address. Established merchants who change their address or the nature of their business must reapply for such permit and pay a fee of ten dollars ($10.00). Permits shall be issued to itinerant merchants only for the period specified in the application. Itinerant merchants must obtain a permit for each period of operation in Arlington County. Each applicant must specify on the application the identity of all corporations, firms or businesses with which they are affiliated, and their authorized agents. Permits are not transferable. ( ) A. Pawnbrokers shall store, care for and protect all of the tangible personal property in the pawnbroker's or secondhand dealer s possession and protect the property from damage or misuse. B. Nothing in this chapter shall be construed to mean that pawnbrokers are insurers of pawned property in their possession

15 C. A pawnbroker may charge a monthly storage fee for any items requiring storage, which fee shall not exceed five percent of the amount loaned on such item False Statements on Application. Penalties. The application shall state thereon that "it is unlawful for any person to make a false statement on this application and discovery of a false statement shall constitute grounds for denial of any application or revocation of a permit." Any false statement made on the application form will constitute a misdemeanor punishable under ( ) Except as otherwise provided in 62-3, any licensed pawnbroker who violates any of the provisions of Article II of this chapter shall be guilty of a Class 4 misdemeanor. In addition, the court may revoke or suspend the pawnbroker's license for second and subsequent offenses. Additionally, any violation of the provisions of this Article shall constitute a violation of the Virginia Consumer Protection Act ( et seq.). ARTICLE III. DEALERS IN PRECIOUS METALS AND GEMS Bond Requirement. Authority. In addition to all other requirements, all itinerant vendors shall be required to post a bond with surety in a form acceptable to the County Attorney in the amount of ten thousand dollars ($10,000.00) before a permit is issued. The surety shall be a bank authorized to do business in Virginia. In lieu of a bond with surety, an irrevocable letter of credit in a form acceptable to the County Attorney may be provided. The period of the bond or letter of credit shall extend for a period of two (2) years beyond the last day on which the merchant transacts any business regulated by this chapter. The bond or letter of credit shall indemnify all persons who suffer any loss resulting from the failure of the merchant to abide by the provisions of this chapter. ( ) This article is adopted pursuant to the authority of Chapter 41, Title 54.1, , of the Code of Virginia, 1950, as amended Revocation of Permit. Definitions. A. The Chief of Police shall revoke the permit of any person after notice and hearing if the Chief finds that such person has knowingly violated any provisions of this chapter. B. Notice of the hearing before the Chief for revocation of the permit shall be given in writing to the permit holder at the last known address of the permit holder which shall be mailed by certified mail to the permit holder at least eight (8) days prior to the hearing and no more than thirty (30) days prior to the hearing. Said notice shall set forth the grounds of the proposed revocation and the time and place of the meeting. C. At the hearing, the permit holder may be represented by counsel, may cross

16 examine witnesses, and may present evidence in his or her favor. D. The Chief shall submit his decision to the permit holder within five (5) days of his decision or within thirty (30) days of the hearing, whichever is sooner. E. In the case of an itinerant merchant, the Chief of Police may forthwith revoke such permit if the Chief finds that such person has knowingly violated the provisions of this chapter. Any itinerant merchant who has had his or her permit revoked by the Chief may demand notice and hearing as described above within forty-eight (48) hours of the next business day following revocation. At such hearing, the itinerant merchant shall be afforded all of the rights and privileges described above. ( ) For the purposes of this chapter, unless the context requires a different meaning: "Coin" means any piece of gold, silver or other metal fashioned into a prescribed shape, weight and degree of fineness, stamped by authority of a government with certain marks and devices, and having a certain fixed value as money. "Dealer" means any person, firm, partnership, or corporation engaged in the business of (i) purchasing secondhand precious metals or gems; (ii) removing in any manner precious metals or gems from manufactured articles not then owned by the person, firm, partnership, or corporation; or (iii) buying, acquiring, or selling precious metals or gems removed from manufactured articles. "Dealer" includes all employers and principals on whose behalf a purchase is made, and any employee or agent who makes any purchase for or on behalf of his employer or principal. The definition of "dealer" shall not include persons engaged in the following: 1. Purchases of precious metals or gems directly from other dealers, manufacturers, or wholesalers for retail or wholesale inventories, provided that the selling dealer has complied with the provisions of this chapter. 2. Purchases of precious metals or gems from a qualified fiduciary who is disposing of the assets of an estate being administered by the fiduciary. 3. Acceptance by a retail merchant of trade-in merchandise previously sold by the retail merchant to the person presenting that merchandise for trade-in. 4. Repairing, restoring or designing jewelry by a retail merchant, if such activities are within his normal course of business. 5. Purchases of precious metals or gems by industrial refiners and manufacturers, insofar as such purchases are made directly from retail merchants, wholesalers, dealers, or by mail originating outside the Commonwealth. 6. Persons regularly engaged in the business of purchasing and processing

17 nonprecious scrap metals which incidentally may contain traces of precious metals recoverable as a by-product. "Gems" means any item containing precious or semiprecious stones customarily used in jewelry. "Precious metals" means any item except coins composed in whole or in part of gold, silver, platinum, or platinum alloys Penalties. Records to be Kept; Copy Furnished to Chief of Police. Any person violating the provisions of this chapter shall, upon conviction, in addition to having his or her permit revoked, be punished by confinement in jail for a period not exceeding six (6) months or by a fine not to exceed one thousand dollars ($1,000.00), either or both. ( ) A. Every dealer shall keep at his place of business an accurate and legible record of each purchase of precious metals or gems. The record of each purchase shall be retained by the dealer for at least 24 months and shall set forth the following: 1. A complete description of all precious metals or gems purchased from each seller. The description shall include all names, initials, serial numbers, or other identifying marks or monograms on each item purchased, the true weight or carat of any gem, and the price paid for each item; 2. The date, time, and place of receiving the items purchased; 3. The full name, residence address, work place, home and work telephone numbers, date of birth, sex, race, height, weight, hair and eye color, and other identifying marks of the person selling the precious metals or gems; 4. Verification of the identification by the exhibition of a government-issued identification card bearing a photograph of the person selling the precious metals or gems, such as a driver's license or military identification card. The record shall contain the type of identification exhibited, the issuing agency, and the number thereon; No identification card, presented to a dealer shall be considered valid if presented after its date of expiration. 5. A statement of ownership from the seller; and 6. A clear, legible, digital image of the form of identification used by the person involved in the transaction. A new copy of this image shall be taken each time a new transaction is conducted. At no time shall an image of an identification presented on a prior occasion be used to conduct a new transaction. B. The information required by subdivisions A 1 through A 3 shall appear on each bill of sale for all precious metals and gems purchased by a dealer, and a copy shall be mailed or delivered within 24 hours of the time of purchase to the chief of police or designated agent

18 Severability. Officers May Examine Records or Property; Warrantless Search and Seizure Authorized. Should any clause, sentence, paragraph or part of this chapter or the application thereof to any person or circumstance be adjudged by a court of competent jurisdiction to be unconstitutional or invalid, said judgment shall not affect, impair or invalidate the remainder of this chapter or the application of such provisions to other provisions or circumstances, but shall be confined in its application to the clause, sentence, paragraph or part thereof directly involved in the controversy in which said judgment shall have been rendered and the person or circumstances involved. ( ) Every dealer or his employee shall admit to his place of business during regular business hours the chief of police or his designee or any law-enforcement officer of the state or federal government. The dealer or his employee shall permit the officer to (i) examine all records required by this chapter and any article listed in a record which is believed by the officer to be missing or stolen and (ii) search for and take into possession any article known to him to be missing, or known or believed by him to have been stolen Credentials and Statement of Ownership Required from Seller. No dealer shall purchase precious metals or gems without first (i) ascertaining the identity of the seller by requiring an identification issued by a governmental agency with a photograph of the seller thereon, and at least one other corroborating means of identification, and (ii) obtaining a statement of ownership from the seller Prohibited Purchases. A. No dealer shall purchase precious metals or gems from any seller who is under the age of eighteen. B. No dealer shall purchase precious metals or gems from any seller who the dealer believes or has reason to believe is not the owner of such items, unless the seller has written and duly authenticated authorization from the owner permitting and directing such sale Dealer to Retain Purchases. A. The dealer shall retain all precious metals or gems purchased for a minimum of 15 calendar days from the date on which a copy of the bill of sale is received by the chief of police or designated agent. Until the expiration of this period, the dealer shall not sell, alter, or dispose of a purchased item in whole or in part, or remove it from the Arlington County. B. If a dealer performs the service of removing precious metals or gems, he shall retain the metals or gems removed and the article from which the removal was made for a period of 15 calendar days after receiving such article and precious metals or gems Record of Disposition

19 Each dealer shall maintain for at least twenty-four months an accurate and legible record of the name and address of the person, firm, or corporation to which he sells any precious metal or gem in its original form after the waiting period required by This record shall also show the name and address of the seller from whom the dealer purchased the item Bond or Letter of Credit Required of Dealers When Permit Obtained. A. Every dealer shall secure a permit as required by 62-24, and each dealer at the time of obtaining such permit shall enter into a recognizance to the Commonwealth secured by a corporate surety authorized to do business in this Commonwealth, in the penal sum of $10,000, conditioned upon due observance of the terms of this chapter. In lieu of a bond, a dealer may cause to be issued by a bank authorized to do business in the Commonwealth a letter of credit in favor of Arlington County for $10,000. B. A single bond upon an employer or principal may be written or a single letter of credit issued to cover all employees and all transactions occurring at a single location Private Action on Bond or Letter of Credit. Any person aggrieved by the misconduct of any dealer which violated the provisions of this chapter may maintain an action for recovery in any court of proper jurisdiction against the dealer and his surety. Recovery against the surety shall be only for that amount of the judgment which is unsatisfied by the dealer Permit Required; Method of Obtaining Permit; No Convictions of Certain Crimes; Approval of Weighing Devices; Renewal; Permanent Location Required. A. No person shall engage in the activities of a dealer as defined in without first obtaining a permit from the chief of police or designee. B. To obtain a permit, the dealer shall file an application form with the chief of police or designee which includes the dealer's full name, any aliases, address, age, date of birth, sex, and fingerprints; the name, address, and telephone number of the applicant's employer, if any; and the location of the dealer's place of business. Upon filing this application and the payment of a $200 application fee, the dealer shall be issued a permit by the chief of police or designee, provided that the applicant has not been convicted of a felony or crime of moral turpitude within seven years prior to the date of application. The permit shall be denied if the applicant has been denied a permit or has had a permit revoked under any ordinance similar in substance to the provisions of this chapter. C. Before a permit may be issued, the dealer must have all weighing devices used in his business inspected and approved by local or state weights and measures officials and present written evidence of such approval to the chief of police or designee. D. This permit shall be valid for one year from the date issued and may be renewed in the same manner as such permit was initially obtained with an annual permit fee of $200. No permit shall be transferable

20 E. If the business of the dealer is not operated without interruption, with Saturdays, Sundays, and recognized holidays excepted, the dealer shall notify the chief of police or designee of all closings and reopenings of such business. The business of a dealer shall be conducted only from the fixed and permanent location specified in his application for a permit. F. The chief of police may waive the permit fee for retail merchants that are not required to be licensed as pawnbrokers provided the retail merchant has a permanent place of business and purchases of precious metals and gems do not exceed five percent of the retail merchant's annual business Penalties; First and Subsequent Offenses. A. Any person convicted of violating any of the provisions of Article II of this chapter shall be guilty of a Class 2 misdemeanor for the first offense. Upon conviction of any subsequent offense he shall be guilty of a Class 1 misdemeanor. B. Upon the first conviction of a dealer for violation of any provision of Article II of this chapter, the chief of police may revoke the dealer's permit for one full year from the date the conviction becomes final. Such revocation shall be mandatory for two full years from the date the conviction becomes final upon a second conviction. ARTICLE IV. DEALERS IN FIREARMS Definitions. For the purpose of this chapter, unless the context requires a different meaning: "Dealer in firearms" means (i) any person, firm, partnership, or corporation engaged in the business of selling, trading or transferring firearms at wholesale or retail; (ii) any person, firm, partnership, or corporation engaged in the business of making or fitting special barrels, stocks, or trigger mechanisms to firearms; or (iii) any person, firm, partnership, or corporation that is a pawnbroker. "Engaged in business" means as applied to a dealer in firearms a person, firm, partnership, or corporation that devotes time, attention, and labor to dealing in firearms as a regular course of trade or business with the principal objective of livelihood and profit through repetitive purchase or resale of firearms, but such term shall not involve a person who makes occasional sales, exchanges, or purchases of firearms for the enhancement of a personal collection or for a hobby, or who sells all or part of his personal collection of firearms. "Firearms show" means any gathering or exhibition, open to the public, not occurring on the permanent premises of a dealer in firearms, conducted principally for the purposes of exchanging, selling or trading firearms as defined in Virginia Code : Inspection of Records