As used in this ordinance:

(a)   “Pawnbroker” means any person who loans money on deposit or pledge of personal property or other valuable thing, other than intangible personal property, or who deals in the purchase of personal property on the condition of selling the same back again at a stipulated price.

(b)   “Person” means any individual, firm, company, partnership, corporation or association.

(c)   “Precious metal” means gold, silver or platinum group metals or any used articles or other used personal property containing such metals, but shall not include coins purchased for their numismatic value rather than their metal content or ingots or other industrial residue or by-products composed of such metals purchased from manufacturing firms.

(d)   “Precious metal dealer” means any person who engages in the business of purchasing precious metal for the purpose of reselling such metal in any form.

(Ord. 4802-12)

(a)   Except as provided in subsection (g) of this section, no person shall conduct business as a pawnbroker or precious metal dealer within the City of Newton, Kansas, without first obtaining a license therefor from the City Clerk.

(b)   Licenses issued hereunder shall consist of the following:

(1)   A pawnbroker license, which shall permit the holder thereof to conduct business as a pawnbroker hereunder, but not as a precious metal dealer;

(2)   A precious metal dealer license, which shall permit the holder thereof to conduct business as a precious metal dealer hereunder, but not as a pawnbroker; or

(3)   A pawnbroker and precious metal dealer license, which shall permit the holder thereof of conduct business as both a pawnbroker and as a precious metal dealer.

(b)   Application for a license or for the renewal thereof shall be made in writing on a form provided for that purpose by the City Clerk, which shall include:

(1)   The full name and place of residence of the applicant;

(2)   If the applicant is a partnership, the name and place of residence of each member thereof;

(3)   If the applicant is a corporation or association, the name and place of residence of each officer, shareholder or member thereof, provided however that the shareholder information shall not be required as to stock which is publicly traded;

(4)   The address of each place in the City where the business is to be conducted;

(5)   The hours and days of the week during which the applicant proposes to engage in the business of pawnbroking or dealing in previous metals at each such place; and

(6)   Such other information as may be required by the City Clerk to determine the applicant’s qualifications for licensure pursuant to this ordinance.

(c)   An applicant shall also submit with such application the following:

(1)   An applicant for any of the licenses designated above shall submit a statement that the applicant is the holder of a valid registration certificate issued by the Kansas Director of Revenue pursuant to K.S.A. 79-3608 for each place of business for which application is made, along with disclosure of the applicant’s assigned sales tax registration number;

(2)   An applicant for a license permitting the conduct of pawnbroking activities shall submit a detailed inventory and description of all goods, wares, merchandise or other property held in pledge or for sale at the time of the application at each place of business identified in the application, indicating whether the same was received in pledge or purchased as secondhand merchandise for resale; provided, however, that no such submission shall be required if such applicant has been lawfully operating as a pawnbroker at the time of application, and if the chief of police verifies that the applicant is current on all reporting requirements.

(3)   An applicant for a license permitting the conduct of precious metal dealer activities shall submit a detailed inventory and description of all precious metals held by the applicant which were purchased by the applicant as part of a transaction regulated hereunder; provided, however, that no such submission shall be required if such applicant has been lawfully operating as a precious metal dealer at the time of application, and if the chief of police verifies that the applicant is current on all reporting requirements.

(4)   A license fee as follows:

(A)  $100.00 for a pawnbroker license;

(B)  $100.00 for a precious metal dealer license; or

(C)  $150.00 for a pawnbroker and precious metal dealer license.

(d)   Each license shall be issued for a term of one year from the date of issuance.

(e)   Any person engaged in business as a pawnbroker or precious metal dealer in the City on the effective date of this ordinance may, if such person submits an application for licensure hereunder within 30 days thereafter, continue to engage in such business unless and until such application is denied by the City. If a person so engaged fails to submit an application for licensure hereunder within 30 days from and after the effective date of this ordinance, such person shall cease to engage in such business on and after the thirty-first day after such effective date and shall not thereafter engage in any such business except pursuant to a license therefor issued by the City.

(Ord. 4802-12)

No license or any renewal thereof shall be granted to:

(a)   Any person who is not a citizen of the United States;

(b)   Any person who has not been an actual resident of the state of Kansas for at least two (2) years immediately preceding the date of application;

(c)   Any person who has been convicted of or has pleaded guilty to a felony under the laws of this state, or any other state, or of the United States, or shall have forfeited a bond to appear in court to answer charges for any such offense within the ten (10) years immediately prior to such person’s application for a license;

(d)   Any person who has had their license revoked for cause under the provisions of this act;

(e)   Any person who is not at least twenty-one (21) years of age;

(f)   Any person who at the time of application for renewal of any license issued hereunder would not be eligible for such license upon a first application;

(g)   Any person who does not own the premises for which a license is sought, unless that person can provide a written lease therefor for at least three-fourths of the period for which the license is to be issued;

(h)   Any person whose spouse would be ineligible to receive a license hereunder for any reason other than the age, citizenship and residence requirements;

(i)    Any partnership, unless all of the partners shall be eligible to receive a license as an individual; or

(j)    A corporation, if any officer, manager, director or stockholder would be ineligible to receive a license as an individual.

(Ord. 4802-12)

(a)   The license of each pawnbroker or precious metal dealer shall state:

(1)   The address at which the business is to be conducted;

(2)   The full name of the licensee;

(3)   If the licensee is a partnership, the name of the members thereof; and

(4)   If the licensee is a corporation, the date and place of its incorporation and the names of all shareholders thereof.

(b)   Such license shall be kept conspicuously posted in the licensed place of business of the licensee and shall not be assignable nor transferable to any other party or to any other locations.

(c)   Not more than one place of business shall be maintained under the same license, but more than one license may be issued to the same licensee upon compliance with all the requirements for issuance of an initial license.

(Ord. 4802-12)

(a)   A licensee shall in all respects comply with each of the provisions and requirements of this article, and of K.S.A. 16-709, et seq., as the same may now provide or as they may hereafter be amended or replaced, with said statutory requirements are hereby incorporated herein by reference.

(b)   In relation to the reporting requirements of K.S.A. 16-715, a licensee is hereby required to submit to the chief of police a report by 5:00 p.m. on each business day of the prior business day’s transactions which are required to be reported. Such reports shall be submitted in such form and by such means as the chief of police may prescribe from time to time. 

(c)   Failure to comply with any such provisions or requirements shall constitute cause for the suspension or revocation of the license. A pawnbroker license may be suspended or revoked due to violation of regulations pertaining to precious metal dealing, and a precious metal dealer license may be suspended or revoked due to violation of regulations pertaining to pawnbroking.

(d)   A license issued pursuant to this ordinance may be suspended or revoked, after due notice and public hearing thereon before the governing body, if the licensee:

(1)   Has failed to pay the annual license fee;

(2)   Has violated any provision of this ordinance; or

(3)   Has been convicted of or has pleaded guilty to a felony under the laws of Kansas or any other state, or of the United States, or shall have forfeited a bond to appear in court to answer charges for any such offense, if such conviction or plea occurred subsequent to or within the 10 years immediately preceding the date of the licensee’s application hereunder.

(e)   A license issued pursuant to this ordinance shall be revoked, after due notice and hearing thereon before the governing body, if it shall be proved by a preponderance of evidence that the licensee sold any handgun to a minor.

(f)   Hearings pursuant to this ordinance shall be held within 30 days after written notice thereof to the licensee, and a written decision on the alleged violation shall be issued by the governing body within sixty (60) days after the conclusion of the hearing. No suspension, revocation or surrender of any such license shall impair or affect any obligation created by a preexisting lawful contract between the licensee and a borrower.

(Ord. 4802-12)

The violation of any provision of this ordinance shall be a class “B” violation under the penalty provisions of the Uniform Public Offense Code as adopted by reference pursuant to Section 17-101 of the Code of the City of Newton, Kansas.

(Ord. 4802-12)

(a)   On or after January 1, 2012, it shall be unlawful for any person or business in the City to engage in the business of being a “scrap metal dealer” as that term is defined in K.S.A. 50-6,109(a) without having first registered each place of business as herein provided. Violations of this provision shall be punishable in the manner prescribed for a class A violation under the Uniform Public Offense Code as adopted by the City pursuant to Section 17-101 of this Code.

(b)   Registration shall be submitted on forms provided by the City Clerk and approved by the Attorney General for the State of Kansas, and shall be filed with the City Clerk on behalf of the governing body. A separate registration must be submitted for each separate location, and each registration shall be accompanied by a fee of $400.00.

(c)   Registrations shall be verified, and shall contain all of the information as required by K.S.A. 50-6,109, et seq., as amended by HB 2312 as published in Chapter 86 of the 2011 Session Laws of Kansas, or as the same may hereafter be amended.

(d)   After examining the information contained in a registration filing and determining the registration meets all applicable requirements for such registration, the filing shall be accepted and the scrap metal dealer shall be deemed to be properly registered. The governing body hereby delegates such examination responsibilities to the City Clerk, who shall be authorized to accept or reject a filing on the governing body’s behalf. However, the City Clerk may refer any filing to the governing body to determine any issues of compliance or eligibility.

(e)   Unless forfeited, suspended or revoked, a registration shall be good for a term of 10 years, and may be renewed for successive 10-year terms thereafter. A submission for a renewal shall be made in the same manner as for an original registration, and shall be subject to all of the same requirements and qualification standards, except that the registration renewal fee shall be $50.00.

(f)   No registration hereunder shall be transferable to another person or party or to another location.

(g)   A business licensed under the vehicle sales and manufacturer licensure provisions of K.S.A. 8-2404, and amendments thereto, shall be exempt from the registration requirements hereunder unless such business buys or recycles regulated scrap metal, as defined in K.S.A. 50-6,109(c), which are not motor vehicle components.

(h)   The City Clerk shall provide the Sheriff and Chief of Police written notice of the filing of registration by a scrap metal dealer within 10 days of registration or renewal.

(Ord. 4793-11)

(a)   No scrap metal dealer registration shall be accepted for any person or entity which does not meet the qualifications as applicable and as set forth in K.S.A. 50-6,109, et seq., as amended by HB 2312 as published in Chapter 86 of the 2011 Session Laws of Kansas, or as the same may hereafter be amended.

(b)   The governing body, upon five days’ notice to a registrant, may suspend the scrap metal dealer registration for up to 30 days for any one of the following reasons:

(1)   A conviction of the registrant for violating any of the provisions of K.S.A. 50-6, 109, et seq., or of Sections 6.24 or 6.25 of the Uniform Public Offense Code as adopted by the City pursuant to Section 17-101 of this Code.

(2)   The employment or continuation in employment of a person by a registrant if the registrant knows such person has, within the 24 months prior to the notice of suspension or revocation action, been convicted of violating any of the provisions of K.S.A. 50-6,109, et seq., and amendments thereto, or of Sections 6.24 or 6.25 of the Uniform Public Offense Code as adopted by the City pursuant to Section 17-101 of this Code, or of the laws of another state comparable to such provisions; or

(3)   Permitting any criminal activity under the Kansas criminal code, or similar ordinance, or rules or regulations made by the City, in or upon the registrant’s place of business.

(c)   The governing body may revoke the registration of a scrap metal dealer who has had its registration suspended three or more times within a 24-month period.

(d)   The governing body, upon five days’ notice to the registrant, shall revoke or suspend the registration for any one of the following reasons:

(1)   The registrant has fraudulently registered by knowingly giving materially false information on the registration form;

(2)   The registrant is or has become ineligible to obtain a registration under this Section 12-710 of this Code; or

(3)   The nonpayment of any registration fees after receiving written notice that such registration fees are more than 30 days past due.

(e)   Within 20 days after the order of the City Clerk or the governing body denying, revoking or suspending any registration, the registrant may appeal to the district court and the district court shall proceed to hear such appeal as though the court had original jurisdiction of the matter. Upon request by the registrant, the district court may enjoin the revocation or suspension of a registration until final disposition of any action brought hereunder.

(f)   Any such suspension or revocation proceedings brought as to actions committed only as to a single registered site shall be brought only as to the registration of that site and not against the registrations of any other scrap metal sites or locations which have been registered by the same individual, company or business entity.

(Ord. 4793-11)