2013-O-06 ORDINANCE NO. 2013-0-06
AN ORDINANCE OF THE CITY OF EDGEWATER,
FLORIDA, AMENDING CHAPTER 11 (BUSINESS TAX
RECEIPTS AND BUSINESS REGULATIONS), ARTICLE II
(MISCELLANEOUS TAXES AND REGULATIONS),
SECTION 11-27 (PAWNBROKERS, SECONDHAND
DEALERS — RECORDS OF TRANSACTIONS OF
PAWNBROKERS) BY REVISING THE TITLE AND
ADDING SECTION 11-27.1 (DEFINITIONS), SECTION 11-
27.2 (LICENSE REQUIRED), SECTION 11-27.3
(ELIGIBILITY FOR LICENSE), SECTION 11-27.4
(PAWNBROKER TRANSACTION FORM), SECTION 11-
27.5 (HOURS OF OPERATION), SECTION 11-27.6
(RECORDKEEPING; REPORTING; HOLD PERIOD),
SECTION 11-27.7 (PLEDGED GOODS NOT REDEEMED),
SECTION 11-27.8 (PAWN SERVICE CHARGES), SECTION
11-27.9 (PROHIBITED ACTS), SECTION 11-27.10 (RIGHTS
TO REDEEM; LOST PAWNBROKER TRANSACTION
FORM), SECTION 11-27.11 (PAWNBROKER'S LIEN),
SECTION 11-27.12 (CLAIMS AGAINST PURCHASED
GOODS OR PLEDGED GOODS HELD BY
PAWNBROKERS), SECTION 11-27.13 (HOLD ORDERS;
ISSUANCE; REQUIRED INFORMATION; PROCEDURES),
SECTION 11-27.14 (INJUNCTIONS), SECTION 11-27.15
(CONFIDENTIALITY) AND SECTION 11-27.16
(ENFORCEMENT); PROVIDING FOR CONFLICTING
PROVISIONS, SEVERABILITY AND APPLICABILITY;
PROVIDING FOR AN EFFECTIVE DATE, ADOPTION
AND CODIFICATION.
WHEREAS, the City Council of the City of Edgewater, Florida, has made the following
determinations:
WHEREAS, Chapter 11 (Business Tax Receipts and Business Regulations), Article II
(Miscellaneous Taxes and Regulations), Section 11-27 (Pawnbrokers, Secondhand Dealers —
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Records of Transactions of Pawnbrokers) has not been modified since the City's Code of
Ordinances was adopted in 1963.
WHEREAS, in the best interests of business owners and patrons and to better protect the
health, safety and welfare of the public as a whole, the City of Edgewater finds that revisions to
Chapter 11, Article II, Section 11-27 are necessary to augment regulation of the business of
pawnbroking to mirror state laws and to more thoroughly regulate pawn transactions.
NOW, THEREFORE, BE IT ENACTED by the People of the City of
Edgewater, Florida:
PART A. AMENDING CHAPTER 11 (BUSINESS TAX
RECEIPTS AND BUSINESS REGULATIONS),
ARTICLE II (MISCELLANEOUS TAXES AND
REGULATIONS), SECTION 11-27
(PAWNBROKERS, SECONDHAND DEALERS —
RECORDS OF TRANSACTIONS OF
PAWNBROKERS) BY REVISING THE TITLE AND
ADDING SECTION 11-27.1 (DEFINITIONS),
SECTION 11-27.2 (LICENSE REQUIRED), SECTION
11-27.3 (ELIGIBILITY FOR LICENSE), SECTION 11-
27.4 (PAWNBROKER TRANSACTION FORM),
SECTION 11-27.5 (HOURS OF OPERATION),
SECTION 11-27.6 (RECORDKEEPING;
REPORTING; HOLD PERIOD), SECTION 11-27.7
(PLEDGED GOODS NOT REDEEMED), SECTION
11-27.8 (PAWN SERVICE CHARGES), SECTION 11-
27.9 (PROHIBITED ACTS), SECTION 11-27.10
(RIGHTS TO REDEEM; LOST PAWNBROKER
TRANSACTION FORM), SECTION 11-27.11
(PAWNBROKER'S LIEN), SECTION 11-27.12
(CLAIMS AGAINST PURCHASED GOODS OR
PLEDGED GOODS HELD BY PAWNBROKERS),
SECTION 11-27.13 (HOLD ORDERS; ISSUANCE;
REQUIRED INFORMATION; PROCEDURES),
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SECTION 11-27.14 (INJUNCTIONS), SECTION 11-
27.15 (CONFIDENTIALITY) AND SECTION 11-27.16
(ENFORCEMENT) OF THE CODE OF
ORDINANCES FOR THE CITY OF EDGEWATER,
FLORIDA.
Chapter 11 (Business Tax Receipts and Business Regulations), Article II (Miscellaneous
Taxes and Regulations), Section 11-27 (Pawnbrokers, Secondhand Dealers —Records of
Transactions of Pawnbrokers) shall be amended as follows:
Sec. 11-27. Pawnbrokers, • . . . . . • . • ' • . . • . . . • . . •
It shall be the duty of all persons licensed in the city as pawnbrokers to keep a complete
date of purchase, and the date and to whom each article was sold. The record shall at all
business hours be open to inspection by the police officers of the city.
Sec. 11-27.1 Definitions.
As used in this section, the term:
(a) "Agency" means the Department of Agriculture and Consumer Services.
(b) "Appropriate law enforcement official" means the sheriff of the county in which a
pawnshop is located or, in case of a pawnshop located within a municipality, the police chief of
the municipality in which the pawnshop is located; however, any sheriff or police chief may
designate as the appropriate law enforcement official for the county or municipality, as
applicable, any law enforcement officer working within the county or municipality headed by
that sheriff or police chief. Nothing in this subsection limits the power and responsibilities of the
sheriff.
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(c) "Claimant" means a person who claims that his or her property was misappropriated.
(d) "Conveying customer" means a persons who delivers property into the custody of a
pawnbroker, either by pawn, sale, consignment, or trade.
(e) "Identification" means a government-issued photographic identification or an electronic
image taken from a government-issued photographic identification.
(f) "Misappropriated" means stolen, embezzled, converted, or otherwise wrongfully
appropriated against the will of the rightful owner.
(g) "Net worth" means total assets less total liabilities.
(h) "Pawn" means any advancement of funds on the security of pledged goods on condition
that the pledged goods are left in the possession of the pawnbroker for the duration of the pawn
and may be redeemed by the pledgor on the terms and conditions contained in this section.
(i) "Pawnbroker" means any person who is engaged in the business of making pawns; who
makes a public display containing the term "pawn," "pawnbroker," or "pawnshop" or any
derivative thereof; or who publicly displays a sign or symbol historically identified with pawns.
A pawnbroker may also engage in the business of purchasing goods which includes consignment
and trade.
(j) "Pawnbroker transaction form" means the instrument on which a pawnbroker records
pawns and purchases as provided in Section 11-27.5.
(k) "Pawn service charge" means a charge for investigating the title, storage, and insuring of
the security; closing the transaction; making daily reports to appropriate law enforcement
officials; expenses and losses; and all other services.
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(1) "Pawnshop" means the location at which a pawnbroker conducts business.
(m) "Permitted vendor" means a vendor who furnishes a pawnbroker with an invoice
specifying the vendor's name and address, the date of the sale, a description of the items sold,
and the sales price, and who has an established place of business, or, in the case of a secondhand
dealer as defined in S. 538.03, has represented in writing that such dealer has complied with all
applicable recordkeeping, reporting, and retention requirements pertaining to goods sold or
otherwise delivered to a pawnbroker.
(n) "Person" means an individual, partnership, corporation, joint venture, trust, association,
or other legal entity.
(o) "Pledged goods" means tangible personal property that is deposited with, or otherwise
delivered into the possession of a pawnbroker in connection with a pawn. "Pledged goods" does
not include titles or any other form of written security in tangible property in lieu of actual
physical possession, including, but not limited to, choses in action, securities, printed evidence of
indebtedness, or certificates of title and other instruments evidencing title to separate items of
property, including motor vehicles. For purposes of federal and state bankruptcy laws, a
pledgor's interest in his or her pledged goods during the pendency of a pawn is a right of
redemption only.
(p) "Pledgor" means an individuals who delivers pledged goods into the possession of a
pawnbroker in connection with a pawn.
(q) "Purchase" means the transfer and delivery of goods, by a person other than a permitted
vendor, to a pawnbroker by acquisition for value, consignment, or trade for other goods.
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(r) "Amount financed" is used interchangeably to mean the same as "amount of money
advanced" or "principal amount".
(s) "Default date" means that date upon which the pledgor's right of redemption expires and
absolute right, title, and interest in and to the pledged goods shall vest in and shall be deemed
conveyed to the pawnbroker by operation of law.
(t) `Beneficial owner" means a person who does not have title to property but has rights in
the property which are the normal incident of owning the property.
(u) "Operator" means a person who has charge of a corporation or company and has control
of its business, or of its branch establishments, divisions, or departments, and who is vested with
a certain amount of discretion and independent judgment.
Sec. 11-27.1 License required.
(a) A person may not engage in business as a pawnbroker unless the person has a valid
certificate of use issued by the city pursuant to section 11-9 and license issued by the Department
of Agriculture and Consumer Services. A separate certificate of use is required for each
pawnshop. The city must issue more than one certificate of use to a person if that person
complies with the requirements for each certificate of use.
(b) An owner/applicant who seeks to move a pawnshop to another location must give 30
day's prior written notice to the city by certified or registered mail, return receipt requested; and
the city must then amend the certificate of use to indicate the new location. The owner/applicant
must also give such written notice to the chief of police.
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(c) Each certificate of use remains in effect until it is relinquished, suspended, revoked or
expires as provided in section 11-16 seq. each owner/applicant shall annually pay a license
amount as provided in section 11-15 for each certificate of use held.
(d) A person must apply to the city for a new certificate of use upon any change, directly or
beneficially, in the ownership of any pawnshop. An application for a certificate of use or an
application to transfer an existing certificate of use is not required upon any change, directly or
beneficially, in the ownership of a pawnshop if one or more holders of at least 90 percent of the
outstanding equity interest of the pawnshop before the change in ownership continue to hold at
least 90 percent of the outstanding equity interest after the change in ownership.
(e) Any person applying for or renewing a local certificate of use to engage in business as a
pawnbroker must exhibit a current license from the agency before the local business tax receipt
may be issued or reissued.
Sec. 11-27.3 Eligibility for license.
(a) To be eligible for a pawnbroker's certificate of use, an applicant must:
(1) Be of good moral character.
(2) Have a net worth of at least $50,000.00 or file with the city a bond issued by a
surety company qualified to do business in this state in the amount of $10,000.00 for each
license. In lieu of the bond required in this subsection, the applicant may establish a certificate
of deposit or an irrevocable letter of credit in a state banking institution in the amount of the
bond. The original bond, certificate of deposit or letter of credit shall be filed with the city; and
the city shall be the beneficiary to the document. The bond, certificate of deposit or letter of
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credit shall be in favor of the city for the use and benefit of any consumer who is unjured by the
fraud, misrepresentation, breach of contract, financial failure or violation of any provision of this
section by the pawnbroker. Such liability may be enforced either by proceeding in an
administrative action or by filing a judicial suit at law in a court of competent jurisdiction.
However, in such court suit, the bond, certificate of deposit or letter of credit posted with the city
shall not be amenable or subject to any judgment or other legal process issuing out of or from
such court in connection with such lawsuit; but such bond, certificate of deposit or letter of credit
shall be amenable to and enforceable only by and through proceedings before the city. Such
bond, certificate of deposit or letter of credit shall be applicable and liable only for the payment
of claims duly adjudicated by order of the city. The bond, certificate of deposit or letter of credit
shall be payable on a pro rata basis as determined by the city, but the aggregate amount may not
exceed the amount of the bond, certificate of deposit or letter of credit.
(3) Not have been convicted of, or found guilty of, or pled guilty or nolo contendere
to, or not have been incarcerated within the last 10 years as a result of having previously been
convicted of, or found guilty of, or pled guilty or nolo contendere to, regardless of adjudication, a
felony within the last 10 years and not be acting as a beneficial owner for someone who has been
convicted of, or found guilty of, or pled guilty or nolo contendere to,regardless of adjudication, a
felony within the last 10 years; and
(4) Not have been convicted of, or found guilty of, or pled guilty or nolo contendere
to, or not have been incarcerated within the last 10 years as a result of having previously been
convicted of, or found guilty of, or pled guilty or nolo contendere to,regardless of adjudication, a
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crime that involves theft, larceny, dealing in stolen property, receiving stolen property, burglary,
embezzlement, obtaining property by false pretenses, possession of altered property, or any other
fraudulent or dishonest dealing within the last 10 years, and not be acting as a beneficial owner
for someone who has been convicted, of, or found guilty of, or pled guilty or nono contendere to,
or has been incarcerated within the last 10 years as a result of having been previously been
convicted of, or found guilty of, or pled guilty or nolo contendere to, regardless of adjudication, a
crime that involves theft, larceny, dealing in stolen property, receiving stolen property, burglary,
embezzlement, obtaining property by false pretenses, possession of altered property, or any other
fraudulent or dishonest dealing within the last 10 years.
(b) Any applicant claiming to have a net worth of$50,000 or more shall file with the city, at
the time of applying for a certificate of use, the following documentation:
(1) A current financial statement prepared by a Florida certified public accountant; or
(2) An affidavit stating the applicant's net worth is at least $50,000, accompanied by
supporting documentation; or
(3) If the applicant is a corporation, a copy of the applicant's most recently filed
federal tax return. If the city cannot verify that the applicant meets the net worth requirement for
a license, the city may require a finding, including the presentation of a current balance sheet, by
an accounting firm or individual holding a permit to practice public accounting in this state, that
the accountant has reviewed the books and records of the applicant and that the applicant meets
the net worth requirement.
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(c) If an applicant for a pawnbroker's certificate of use is not an individual, the eligibility
requirements of this subsection, other than the requirements of subsection (a)(2), apply to each
operator of the pawnshop and to each direct or beneficial owner of at least 10 percent of the
outstanding equity interest of the pawnshop and, if the applicant is a corporation, to each officer
and director of the corporation.
Sec. 11-27.4 Application for certificate of use.
(a) An application for a pawnbroker's certificate of use, for the transfer of an existing
pawnbroker's certificate of use, or for the approval of a change in the ownership of a licensee's
pawnshop must be under oath and must state the full name and place of residence of the
applicant, the place where the business is to be conducted, and other relevant information
required by F.S. §539.001(5).
Sec. 11-27.5 Pawnbroker transaction form.
(a) At the time the pawnbroker enters into any pawn or purchase transaction, the pawnbroker
shall complete a state approved pawnbroker transaction form for such transaction, including an
indication of whether the transaction is a pawn or a purchase, and the pledgor or seller shall sign
such completed form, which must elicit the information required under this section. In
completing the pawnbroker transaction form, the pawnbroker shall record the information
required in subsection (b), which must be typed or written indelibly and legibly in English.
(b) A pawnbroker transaction form must include:
(1) The name and address of the pawnshop.
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(2) A complete and accurate description of the pledged goods or purchased goods,
including the following information, if applicable:
a. Brand name.
b. Model number.
c. Manufacturer's serial number.
d. Size.
e. Color, as apparent to the untrained eye.
f. Precious metal type, weight and content, if known.
g. Gemstone description, including the number of stones.
h. In the case of firearms, the type of action, caliber or gauge, number of
barrels,barrel length, and finish.
i. Any other unique identifying marks, numbers, names, or letters.
Notwithstanding subsections (2)a. — i., in the case of multiple items of a similar nature
delivered together in one transaction that do not bear serial or model numbers and that do not
include precious metals or gemstones, such as musical or video recordings, books, and hand
tools, the description of the items i4 is adequate if it contains the quantity of items and a
description of the type of items delivered.
(3) The name, address, home telephone number,_place of employment, place of birth,
physical description and right thumbprint of the pledgor or seller.
(4) The date and time of the transaction.
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(5) The type of identification accepted from the pledgor or seller, including the
issuing agency and the identification number.
(6) In the case of a pawn:
a. The amount of money advanced, which must be designated as the amount
financed;
b. The maturity date of the pawn, which must be 30 days after the date of the
pawn;
c. The default date of the pawn and the amount due on the default date;
d. The total pawn service charge payable on the maturity date, which must be
designated as the finance charge;
e. The amount financed plus the finance charge that must be paid to redeem
the pledged goods on the maturity date, which must be designated as the total of payments;
f. The annual percentage rate, computed according to the regulations
adopted by the Federal Reserve Board under the Federal Truth in Lending Act; and
g. The front or back of the pawnbroker transaction form must include a
statement that:
1. Any personal property pledged to a pawnbroker within this state
which is not redeemed within 30 days following the maturity date of the pawn, if the 30th day is
not a business day, then the following business day, is automatically forfeited to the pawnbroker,
and absolute right, title, and interest in and to the property vests in and is deemed conveyed to
the pawnbroker by operation of law, and no further notice is necessary;
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2. The pledgor is not obligated to redeem the pledged goods; and
3. If the pawnbroker transaction form is lost, destroyed, or stolen, the
pledgor must immediately advise the issuing pawnbroker in writing by certified or registered
mail, return receipt requested, or in person evidenced by a signed receipt.
4. A pawn may be extended upon mutual agreement to the parties.
(7) In the case of a purchase, the amount of money paid for the goods or the monetary
value assigned to the goods in connection with the transaction.
(8) A statement that the pledgor or seller of the item represents and warrants that it is
not stolen, that is has no liens or encumbrances against it, and that the pledgor or seller is the
rightful owner of the goods and has the right to enter into the transaction.
(9) A pawnbroker transaction form must provide a space for the imprint of the right
thumbprint of the pledgor or seller and a blank line for the signature of the pledgor or seller.
(10) At the time of the pawn or purchase transaction, the pawnbroker shall deliver to
the pledgor or seller an exact copy of the completed pawnbroker transaction form.
Sec. 11-27.6 Hours of operation.
No pawnbroker shall engage in or conduct business as a pawnbroker between the hours
of 12:00 midnight and 6:00 a.m.
Sec. 11-27.7 Recordkeeping; reporting; hold period.
(a) A pawnbroker must maintain a copy of each completed pawnbroker transaction form on
the pawnshop premises for at least 1 year after the date of the transaction. On or before the end
of each business day, the pawnbroker must deliver to the appropriate law enforcement official
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the original pawnbroker transaction forms for each of the transactions occurring during the
previous business day, unless other arrangements have been agreed upon between the
pawnbroker and the appropriate law enforcement official. If the original transaction form is lost
or destroyed by the appropriate law enforcement official, a copy may be used by the pawnbroker
as evidence in court. When an electronic image of a pledgor or seller identification is accepted
for a transaction, the pawnbroker must maintain the electronic image in order to meet the same
recordkeeping requirements as for the original transaction form. If a criminal investigation
occurs, the pawnbroker shall, upon request, provide a clear and legible copy of the image to the
appropriate law enforcement official.
(b) All goods delivered to a pawnbroker in a pawn or purchase transaction must be securely
stored and maintained in an unaltered condition within the jurisdiction of the appropriate law
enforcement official for a period of 30 calendar days after the transaction. Those goods
delivered to a pawnbroker in a purchase transaction may not be sold or otherwise disposed of
before the expiration of such period. The pawnbroker shall make all pledged and purchased
goods and all records relating to such goods available for inspection by the appropriate law
enforcement official during normal business hours throughout such period. The pawnbroker
must store and maintain pledged goods for the period prescribed in subsection 27-8 unless the
pledged goods are redeemed earlier; provided, however, that within the first 30 days after the
original pawn, the pledged goods may be redeemed only by the pledgor or the pledgor's attorney
in fact.
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Sec. 11-27.8 Pledged goods not redeemed.
Pledged goods not redeemed by the pledgor on or before the maturity date of a pawn
must be held by the pawnbroker for at least 30 days following such date or until the next
business day if the 30th day is not a business day. Pledged goods not redeemed within the 30 day
period following the maturity date of a pawn are automatically forfeited to the pawnbroker;
absolute right, title and interest in and to the goods shall vest in and shall be deemed conveyed to
the pawnbroker by operation of law; and no further notice is necessary. A pledgor has no
obligation to redeem pledged goods or make any payment on a pawn.
Sec. 11-27.9 Pawn service charges.
(a) In a pawn transaction, a pawnbroker may contract for and receive a pawn service charge.
The interest component of the pawn service charge shall be deemed to be two percent of the
amount financed for each 30 day period in a pawn transaction. The pawnbroker may charge any
amount of pawn service charge, so long as the total amount, inclusive of the interest component,
does not exceed 25 percent of the amount financed for each 30 day period in a pawn transaction,
except that the pawnbroker is entitled to receive a minimum pawn service charge of $5.00 for
each such 30 day period.
(b) The default date of any pawn may be extended to a subsequent date by mutual agreement
between the pledgor and the pawnbroker; except the pawnbroker may not impose a minimum
duration of more than 30 days, evidenced by a written memorandum, a copy of which must be
supplied to the pledgor, which must clearly specify the new default date, the pawn service
charges paid for the extension, and the pawn services charges owed on the new default date. In
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this event, the daily pawn service charge for the extension shall be equal to the pawn service
charge for the original 30 day period divided by 30 days (i.e., 1/30 of the original total pawn
service charge). There is no limit on the number of extensions the parties may agree to.
(c) The total amount of pawn service charges that a pawnbroker may collect in the case of
pledged goods redeemed at any time within 30 days after the date of the pawn is the amount
provided in subsection (a) of this section. The total amount of pawn service charges that a
pawnbroker may collect in the case of redemptions occurring at any time more than 30 days after
the date of the pawn is twice the amount provided in subsection (a) of this section; except that,
for redemptions occurring more than 60 days after the date of the pawn, pawn service charges
continue to accrue from and after the 60th day at the daily rate determined as provided in
subsection (b) of this section. Any unused pawn service charge paid in advance by the pledgor
shall be refunded by the pawnbroker.
(d) Pledged goods may be redeemed by mail by agreement between the pledgor and the
pawnbroker. The pledgor must pay in advance all moneys due and a reasonable charge assessed
by the pawnbroker to recover its cost and expenses involved in the packaging, insuring and
shipping of the pledged goods. If the pawnbroker insures the pledged goods in an amount not
less than the amount advanced to the pledgor in the pawn transaction, the pawnbroker's liability
for loss or damage in connection with the shipment of such pledged goods is limited to the
amount of the insurance coverage obtained.
(e) Any interest, charge or fees contracted for or received, directly or indirectly, in excess of
the amounts authorized under this section are prohibited, may not be collected, and render the
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dawn transaction voidable, in which case the pawnbroker shall forfeit the right to collect twice
the amount of the pawn service charge contracted for in thepawn and, upon the pledgor's written
request received by the pawnbroker within 30 days after the maturity date, shall be obligated to
return to the pledgor the pledged goods delivered to the pawnbroker in connection with the pawn
upon payment of the balance remaining due, provided that there shall be no penalty for a
violation resulting from an accidental and bona fide error that is corrected upon discovery. Any
action to circumvent the limitation on pawn service charges collectible under this section is
voidable. If a pledgor makes a partial payment on a pawn that reduces the amount financed, any
additional pawn service charges shall be calculated on the remaining balance of the original
amount financed.
Sec. 11-27.10 Prohibited acts.
A pawnbroker, or an employee or agent of a pawnbroker, may not:
(a) Falsify or intentionally fail to make an entry of any material matter in a pawnbroker
transaction form.
(b) Refuse to allow the agency, the appropriate law enforcement official, or the state
attorney, or any of their designated representatives having appropriate jurisdiction, to inspect
completed pawnbroker transaction forms or pledged or purchased goods during the ordinary
hours of the pawnbroker's business or other time acceptable to both parties.
(c) Obliterate, discard or destroy a completed pawnbroker transaction form sooner than three
(3)years after the date of the transaction.
(d) Accept a pledge or purchase property from a person under the age of 18 years.
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(e) Make any agreement requiring or allowing the personal liability of a pledgor or the
waiver of any of the provisions of this section.
(f) Knowingly enter into a pawn or purchase transaction with any person who is under the
influence of alcohol or controlled substances when such condition is apparent, or with any
person using the name of another or the registered name of another's business.
(g) Conduct any pawn or purchase transaction at a drive-through window or similar device in
which the customer remains in a vehicle while conducting the transaction.
(h) Fail to return or replace pledged goods to a pledgor upon payment of the full amount due
the pawnbroker unless the pledged goods have been placed under a hold order under section 11-
27.4 taken into custody by a court or otherwise disposed of by court order, or lost or damaged.
(i) Sell or otherwise charge for insurance in connection with a pawn transaction, except in
connection with the shipment of pledged goods redeemed by mail as provided in section 11-27.9.
(j) Engage in title loan transactions at a licensed pawnshop location.
(k) Lease pledged goods to the pledgor or any other party.
(I) Knowingly hire anyone to work in a pawnshop who has been convicted of, or entered a
plea of guilty or nolo contendere to, or had adjudication withheld for a felony within the last 5
years, or been convicted of, or entered a plea of guilty or nolo contendere to, or had adjudication
withheld for a crime within the last 5 years which involves theft, larceny, dealing in stolen
property, receiving stolen property, burglary, embezzlement, obtaining property by false
pretenses, possession of altered property, or any fraudulent, or dishonest dealing.
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(m) Knowingly accept or receive misappropriated property from a conveying customer in a
pawn or purchase transaction.
Sec. 11-27.11 Right to redeem; lost pawnbroker transaction form.
(a) Only a pledgor or a pledgor's authorized representative is entitled to redeem the pledged
goods described in the pawnbroker transaction form; however, if the pawnbroker determines that
the person is not the original pledgor, or the pledgor's authorized representative, the pawnbroker
is not required to allow the redemption of the pledged goods by such person. The person
redeeming the pledged goods must sign the pledgor's copy of the pawnbroker transaction form,
which the pawnbroker may retain as evidence of the person's receipt of the pledged goods. If the
person redeeming the pledged goods is the pledgor's authorized representative, that person must
present notarized authorization from the original pledgor and show identification to the
pawnbroker and the pawnbroker shall record that person's name and address on the pawnbroker
transaction form retained by the pawnshop. It is the pawnbroker's responsibility to verify that
the person redeeming the pledged goods is either the pledgor or the pledgor's authorized
representative.
(b) If a pledgor's copy of the pawnbroker transaction form is lost, destroyed or stolen, the
pledgor must notify the pawnbroker in writing by certified or registered mail, return receipt
requested, or in person evidenced by a signed receipt; and receipt of this notice invalidates the
pawnbroker transaction form if the pledged goods have not previously been redeemed. Before
delivering the pledged goods or issuing a new pawnbroker transaction form, the pawnbroker
must require the pledgor to make a written statement of the loss, destruction or theft of the
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pledgor's copy of the pawnbroker transaction form. The pawnbroker must record on the written
statement the type of identification and the identification number accepted from the pledgor, the
date the statement is given, and the number of the pawnbroker transaction form that was lost,
destroyed or stolen. The statement must be signed by the pawnbroker or the pawnshop employee
who accepts the statement from the pledgor. A pawnbroker is entitled to a fee not to exceed
$2.00 in connection with each lost, destroyed or stolen pawnbroker transaction form and the
taking of a property prepared written statement.
(c) Sales tax is not due or collectible in connection with the redemption of pledged goods.
(d) If pledged goods are lost or damaged while in the possession of the pawnbroker, the
pawnbroker may satisfy the pledgor's claim by replacing the lost or damaged goods with like
kinds of merchandise of equal value, with which the pledgor can reasonably replace the goods.
Such an offer of replacement is a defense to any prosecution based upon the loss or damage of
the goods.
Sec. 11-27.12 Pawnbroker's lien.
A pawnbroker has a possessory lien on the pledged goods pawned as security for the
funds advanced, the pawn service charge owed, and the other charges authorized under this
section, but not for other debts due to the pawnbroker. A pawnbroker has no recourse against a
pledgor for payment on a pawn transaction except for the pledged goods themselves. Except as
otherwise provided in this section, the pawnbroker must retain possession of the pledged goods
until the lien is satisfied or until the default date. The pawnbroker may be compelled to
relinquish possession of the pledged goods only after receipt of the applicable funds advanced
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plus the accrued service charge and other authorized charges, upon court order, or as otherwise
provided by law.
Sec. 11-27.13 Claims against purchased goods or pledged goods held by pawnbrokers.
(a) To obtain possession of purchased or pledged goods held by a pawnbroker that a claimant
claims to be misappropriated, the claimant must notify the pawnbroker by certified mail, return
receipt requested, or in person evidenced by signed receipt, of the claimant's claim to the
purchased or pledged goods. The notice must contain a complete and accurate description of the
purchased or pledged goods and must be accompanied by a legible copy of the applicable law
enforcement agency's report on the misappropriation of such property. If the claimant and the
pawnbroker do not resolve the matter within 10 days after the pawnbroker's receipt of the notice,
and if the pledged goods are not under a hold order under section 11-27.14, the claimant may
petition the court to order the return of the property, naming the pawnbroker and the conveying
customer as a defendant, and must serve the pawnbroker and the conveying customer with a
copy of the petition. The pawnbroker shall hold the property described in the petition until the
right to possession is resolved by the parties or by a court of competent jurisdiction. The court
shall waive any filing fee for the petition to recover the property, and the sheriff shall waive the
service fees.
(b) If after notice and a hearing the court finds that the property was misappropriated and
orders the return of the property to the claimant:
(1) The claimant may recover from the pawnbroker the cost of the action, including
the claimant's reasonable attorney's fees; and
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(2) If the conveying customer is convicted of theft, a violation of this section, or
dealing in stolen property, the court shall order the conveying customer to repay the pawnbroker
the full amount the conveying customer received from the pawnbroker for the property, plus all
applicable pawn service charges. As used in this paragraph, the term "convicted of' includes a
plea of nolo contendere to the charges or any agreement in which adjudication is withheld; and
(3) The conveying customer shall be responsible to pay all attorney's fees and taxable
costs incurred by the pawnbroker in defending a replevin action or any other civil matter wherein
it is found that the conveying customer was in violation of this paragraph.
(c) If the court finds that the claimant failed to comply with the requirements in subsection
(a) of this section or otherwise finds against the claimant, the claimant is liable for the
defendant's costs, including reasonable attorney's fees.
(d) The sale, pledge or delivery of tangible personal property to a pawnbroker by any person
in this city is considered to be:
(1) An agreement by the person who sells, pledges or delivers the tangible personal
property that the person is subject to the jurisdiction of the court in all civil actions and
proceedings arising out of the pledge or sale transaction filed by either a resident or nonresident
plaintiff;
(2) An appointment of the secretary of state by any nonresident of this state as that
person's lawful attorney and agent upon whom may be served all process in suits pertaining to
the actions and proceedings arising out of the sale, pledge or delivery; and
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(3) Any agreement by any nonresident that any process in any suit so served has the
same legal force and validity as if personally served in this state.
Sec. 11-27.14 Hold orders; issuance; required information; procedures.
(a) Placing of hold order. When a law enforcement officer has probable cause to believe
that property in the possession of a pawnbroker is misappropriated, the law enforcement officer
may place a written hold order on the property. The written hold order may impose a holding
period not to exceed 90 days unless extended by court order. The law enforcement agency may
place only one hold order on property.
(b) Expiration. Upon the expiration of the holding period, the pawnbroker may notify, in
writing, the appropriate law enforcement official by certified mail, return receipt requested, that
the holding period has expired. If, on the 10th day after the written notice has been received by
the appropriate law enforcement offical, the pawnbroker has not received from a court an
extension of the hold order on the property, title to the property shall vest in and be deemed
conveyed by operation of law to the pawnbroker, free of any liability for claims but subject to
any restrictions contained in the pawn transaction contract and subject to the provisions of this
section.
(c) Contents. A hold order must specify:
(1) The name and address of the pawnbroker.
(2) The name, title and identification number of the representative of the law
enforcement agency or the court placing the hold order.
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(3) If applicable, the name and address of the law enforcement agency or court to
which such representative is attached and the number, if any, assigned to the claim regarding the
property.
(4) A complete description of the property to be held, including model number and
serial number if applicable.
(5) The name of the person reporting the property to be misappropriated.
(6) The mailing address of the pawnbroker where the property is held.
(7) The expiration date of the holding period.
(d) Receipt. The pawnbroker or the pawnbroker's representative must sign and date a copy
of the hold order as evidence of receipt of the hold order and the beginning of the 90-day holding
period.
(e) Release or disposal of property.
(1) Except as provided in subsection (e)(2) of this section, a pawnbroker may not
release or dispose of property subject to a hold order except pursuant to a court order, a written
release fofni from the chief of police, or the expiration of the holding period of the hold order.
(2) While a hold order is in effect, the pawnbroker may release the property subject to
the holder order to the custody of the law enforcement official for use in a criminal investigation.
The release of the property to the custody of the law enforcement official is not considered a
waiver or release of the pawnbroker's property rights or interest in the property. Upon
completion of the criminal investigation, the property must be returned to the pawnbroker unless
the court orders other disposition. When such other disposition is ordered, the court shall
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additionally order the conveying customer to pay restitution to the pawnbroker in the amount
received by the conveying customer for the property together with reasonable attorney's fees and
costs.
Sec. 11-27.15 Injunctions.
When the city has reasonable cause to believe that a person is violating this section, the
city may enter an order requiring the person to stop the violation. The city may petition the court
to enjoin the person from engaging in the violation, continuing the violation, or doing any act in
furtherance of the violation. The court may order a preliminary or permanent injunction.
Sec. 11-27.16 Confidentiality.
All records relating to pawnbroker transactions delivered to the appropriate law
enforcement official pursuant to this section are confidential and exempt from the provisions of
Fla. Const., art. I, § 24(a), and F.S. §119.07(1) and may be used only for official law
enforcement purposes. This section does not prohibit the disclosure by the appropriate law
enforcement officials of the name and address of the pawnbroker, the name and address of the
conveying customer, or a description of pawned property to the alleged owner of pawned
property.
Sec. 11-27.17 Enforcement.
(a) Enforcement of this section shall be by the police department. Upon conviction, violators
may be subject to penalties provided in section 1-14. Violations of this section that also
constitute criminal violations of F.S. ch. 539 may be punished asprovided in F.S. § 539.001(17).
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(b) Additionally, violators may be subject to certificate of use revocation procedures as set
forth in section 11-16 and suits for injunctive relief
PART B. CONFLICTING PROVISIONS.
All conflicting ordinances and resolutions, or parts thereof, in conflict with this
ordinance, are hereby superseded by this ordinance to the extent of such conflict.
PART C. SEVERABILITY AND APPLICABILITY.
If any portion of this ordinance is for any reason held or declared to be unconstitutional,
inoperative, or void by a court of competent jurisdiction, such holding shall not affect the
remaining portions of this ordinance. If this ordinance or any provisions thereof shall be held to
be inapplicable to any person, property, or circumstances by a court of competent jurisdiction,
such holding shall not affect its applicability to any other person, property, or circumstance.
PART D. CODIFICATION.
Provisions of this ordinance shall be incorporated in the Code of Ordinances of the City
of Edgewater, Florida, and the word "ordinance", may be changed to "section", "article", or
other appropriate word, and the sections of this ordinance may be renumbered or relettered to
accomplished such intention; provided, however, that Parts B through F shall not be codified.
PART E. EFFECTIVE DATE.
This Ordinance shall take place upon adoption.
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PART F. ADOPTION.
After Motion to approve by Councilwoman Bennington, with Second by Councilwoman
Power, the vote on the first reading of this ordinance held on July 15, 2013, was as follows:
AYE NAY
Mayor Mike Thomas X
Councilwoman Christine Power X
Councilwoman Gigi Bennington X
Councilman Mike Ignasiak EXCUSED
Councilman Gene Emter X
After Motion to approve by alined rnaA ,- ,r with Second by
Ccu,, Aer, the vote on the second reading/public hearing of this ordinance held on
September 9, 2013 was as follows:
AYE NAY
Mayor Mike Thomas �(
Councilwoman Christine Power }(
Councilwoman Gigi Bennington }C
Councilman Mike Ignasiak X
Councilman Gene Emter
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PASSED AND DULY ADOPTED this 9th day of September, 2013.
ATTEST: CITY COUNCIL OF THE
CITY OF EDGEWA ER, FL!RIDA
-nox\N-NL (JD OINNWO By. _ 41Ik •i•
Bonnie Wenzel ike
City Clerk I ayor
Robin L. Matusick
Paralegal
For the use and reliance only by the City of Approved by the City Council of the City of
Edgewater, Florida. Approved as to form and Edgewater at a meeting held on this 9th day of
legality by: Aaron R. Wolfe, Esquire September, 2013 under Agenda Item No.
City Attorney 8b .
Doran, Sims, Wolfe& Kundid
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