5.15.070 Auctioneers, pawnbrokers, secondhand dealers and scrap dealers – Special requirements.
A. Fruits of a Crime. Pawnbrokers shall file reports with and in a manner approved by the police department consistent with all of the requirements contained in A.R.S. § 44-1625 as amended or as may be amended upon forms provided or approved by the police department. The required forms are paid for in advance at a location designated by the police department.
1. No article shall be sold or exchanged by any pawnbroker until it shall have been in the custody thereof for 20 calendar days after making out and delivering to the police department the report required under subsection (A) of this section. Any article held in custody pursuant to this subsection shall not be altered or transformed in any way but shall be held in the same condition in which it was delivered to the reporting party. This subsection shall not apply to redemption of pawned or pledged articles.
B. All auctioneers, pawnbrokers, secondhand dealers, and scrap dealers shall submit to a fingerprinting process as directed by the licensing office in accordance with this chapter.
C. Scrap dealers shall file reports with the police department consistent with all of the requirements contained in A.R.S. § 44-1644 as amended or as may be amended.
D. Secondhand dealers shall file reports with and in a manner approved by the police department consistent with all of the requirements contained in A.R.S. § 44-1602(C) as amended or as may be amended and the requirements of this chapter upon forms provided or approved by the police department. The required forms are paid for in advance at a location designated by the police department.
1. Any person subject to the provisions of this chapter who is engaged in the business of secondhand dealer shall, at the time of the transaction, include in the report all goods or articles received on deposit, consignment, trade, exchange or purchase which bear a serial number, owner applied number (O.A.N.) or have a fair market value in excess of one hundred dollars ($100.00).
2. A secondhand dealer shall retain any property obtained in a reportable transaction at its place of business or other storage location approved by the police department for a period of 10 calendar days after making out and delivering to the police department the report required under this subsection. Any article held in custody pursuant hereto shall not be altered or transformed in any way but shall be held in the same condition in which it was delivered to the reporting party. If a secondhand dealer comes into possession of abandoned property, the dealer shall turn over such property to the police department.
3. Notwithstanding the foregoing, the provisions of this subsection shall not apply to purchases by a secondhand dealer from a business with a fixed business location of either business inventory or business equipment; provided, that the licensee has acquired by the time of the transaction documentation of:
a. The name and address of the business;
b. The state and local privilege (sales) tax license number of the business, if applicable;
c. A copy of the invoice or other document showing the business’ bona fide purchase of or right to possess the article sold, or a representative of the business with authority to on its behalf had completed and signed the report required by this section in all its particulars, without regard to the amount of the transaction.
4. The provisions of this subsection shall not apply to secondhand dealers’ purchases of household items from a place of residence; provided, that:
a. The purchase is made by the licensee by check or other negotiable instrument made payable to the seller, or the purchase is made in cash and the licensee has obtained a receipt for that cash payment from the seller bearing the seller’s name and address verified to be accurate by the licensee;
b. The seller has produced for the licensee’s inspection documentary evidence which establishes that the seller is either the lawful occupant of the premises or has the legal right to sell the items offered for sale. The licensee shall record from the documentary evidence produced a description of the document, including the name or nature of the document, and, to the extent available, its date, the individual’s name and address thereon, and any account number;
c. Notwithstanding the fair market value of one hundred dollars ($100.00) or more rule contained in subsection (D)(1) of this section, the licensee records the serial numbers and descriptions of all items bearing serial numbers.
5. The provisions of this subsection shall not apply to consignments to secondhand dealers, other than a firearm; provided, that no payment is made by the licensee to the consignor for a period of 10 calendar days after the date of consignment.
6. The provisions of this subsection shall not apply to articles of used clothing or furniture received by a secondhand dealer in trade, exchange, purchase or on consignment, excluding electronic appliances and equipment.
7. The provisions of this subsection shall not apply to goods or articles received by a secondhand dealer in trade, exchange or by purchase from a business engaged in the lawful liquidation of its business.
8. The provisions of this subsection shall not apply to goods or articles received by a secondhand dealer in trade, exchange, purchase or on consignment from an auction house or pawnbroker possessing a valid license issued pursuant to this chapter.
9. The business premises of any secondhand dealer, along with their transaction records and stock of goods and articles, shall be open to reasonable inspection by any peace officer of this state when the business premises are lawfully occupied and during regular business hours. All documentation required to substantiate the above exclusions shall be retained on the business premises for a period of 24 months. Each secondhand dealer shall maintain a current copy of this chapter on the premises and shall make it available upon request to any employee or customer and to local law enforcement.
E. Auctioneers shall file true, complete, and legible reports with the police department of all goods and articles received except clothing, books, records, and audio tapes. The reports shall be made upon forms provided or approved by the police department and shall be delivered or postmarked within 24 hours after receipt of the property. An auctioneer shall describe the property using either of the following methods:
1. By attaching a legible copy of the auctioneer’s consignment agreement, purchase receipt, purchase invoice, or other similar document containing a property description; or
2. For groups of items that are received as part of one business transaction that are not readily distinguishable or identifiable as individual items, by furnishing on one report a general description of the group of items.
F. It shall not be considered a violation of this section if the violation is the result of a bona fide error; provided, that the pawnbroker, scrap dealer, secondhand dealer, or auctioneer maintains procedures reasonably adapted to avoid the occurrence of such bona fide error. For purposes of this section, “bona fide error” shall mean clerical, calculation, computer malfunction, programming, printing, and other similar errors.
G. Upon notification by any peace officer or representative of the police department that goods or articles received on deposit or consignment, in pawn, pledge, trade, or exchange, or by purchase are the fruits of a crime, no pawnbroker, scrap dealer, secondhand dealer, or auctioneer shall dispose of such property.
1. A peace officer or representative of the police department may place a hold on property in person, on the telephone, or by any other reasonable means if the pawnbroker, scrap dealer, secondhand dealer, or auctioneer is notified in writing within five working days after the hold is placed. This written notice shall include all of the following information:
a. The date of the hold;
b. A description of the property, including serial number if applicable;
c. The representative’s name and, if applicable, badge number;
d. The telephone number of the representative;
e. The police department report number.
2. If a peace officer or representative of the police department declares a “police hold” on the property, the person shall attach a tag supplied by the police department to the property. The tag shall include the representative’s name and serial number, telephone number, and the date of the hold. The tag shall remain on the property until the police department releases the hold or until the hold expires pursuant to subsection (G)(3) of this section.
3. A hold shall expire 90 days after the date of the hold. A hold may be extended by the police department in 90-day increments by written notification to the pawnbroker, scrap dealer, secondhand dealer, or auctioneer if the notification is received prior to the expiration of the hold.
4. Interest upon such goods and articles pawned or pledged shall cease to accrue on the date of official notification.
5. Upon receiving a receipt from any peace officer or representative of the police department, the pawnbroker, scrap dealer, secondhand dealer, or auctioneer shall turn over such items to the peace officer or representative of the police department.
H. The reporting requirements of this section on goods and articles received on deposit or consignment, trade or exchange, or by purchase shall not apply to organizations qualified under Section 501(C) of the Internal Revenue Code. [Ord. 18-16 § 1; Res. 18-29; Code 2004 § 8-3-7.]