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CITY COUNCIL WORK SESSION <br />Topic Report: Pawn/Secondhand Goods Dealers <br />By: Jim Way, Chief of Police <br /> <br />Background: <br /> <br />The Ramsey City Code 7.13 currently covers pawn dealers and secondhand goods <br />dealers. Both businesses include the selling of previously owned property that is <br />purchased by the business. One of the major differences is that pawn dealers are <br />allowed to make loans and secondhand goods dealers are not. Another difference is <br />that some of the items that a pawn shop can receive, a secondhand goods dealer <br />cannot. <br /> <br />Secondhand goods dealers consign or purchase goods for resale. Sporting goods, <br />clothing, antiques, and media are commonly sold by these dealers. <br /> <br />By City Code, both currently pay $5000 per year for a license. The license amount is <br />to cover the costs of the police department's added filing time and investigative time <br />spent dealing with these types of businesses. <br /> <br />Secondhand Dealer Ordinance <br /> <br />Staff has reviewed the pawnbroker code, to determine if there is a perceived undo <br />hardship on secondhand goods dealers. After reviewing the code, it appears because <br />of the differences in these businesses, that a new ordinance should be created <br />specifically for secondhand dealers. The license fee, which is charged for the <br />department's investigative time could be decreased. Time would be reduced due to <br />decreased volume, value of property, and monitoring fewer types of property. <br /> <br />Pawnbroker Ordinance <br /> <br />Staff is reviewing this ordinance to determine if implementation of an Automated <br />Pawn System would enhance the police department's investigative capabilities, in a <br />cost effective manner. <br /> <br />The APS Automated Pawn System® (APS) was initiated in 1997 by the Minneapolis <br />Police Department. APS decreases and stabilizes the cost of regulation and <br />enforcement of the city's pawn and secondhand dealer ordinances; improves police <br />service and effectiveness; enables law enforcement agencies to share <br />pawn/secondhand transaction information electronically; and increased the recovery <br />of stolen property. <br /> <br /> <br />