Legislation # 13-0436 Enactment Number 13-0024
Type Ordinance - Coded Effective Date 1/1/2014
Introduction Date 11/13/2013
Title Ordinance To Amend And Reenact The Code Of The City Of Hampton, Chapter 27 Entitled "Pawnbrokers; Junk and Secondhand Dealers" And To Add Thereto A New Chapter 27.1 Entitled "Building Fixtures; Scrap Metal Purchasers And Precious Metal Dealers"
 
Legislation History 13-0436
DateNotice Of ActionDescription
11/19/2013 Enactment Number 13-0024
11/13/2013 Approved
11/5/2013 Received By Clerk's Office
 
View Attachments 13-0436
FileTypeSizeDescription
Chapter 27 & 27.1 redline.docx Other 55K Redline Version
Chapter 27 - Additional Background Information.doc Other 255K Additional Background Material
 
Legislation Text 13-0436

 

City of Hampton, Virginia

Ordinance - Coded

22 Lincoln Street

Hampton, VA 23669

www.hampton.gov

 

File Number: 13-0436

 

Enactment Number: 13-0024

 

Ordinance To Amend And Reenact The Code Of The City Of Hampton, Chapter 27 Entitled "Pawnbrokers; Junk and Secondhand Dealers" And To Add Thereto A New Chapter 27.1 Entitled "Building Fixtures; Scrap Metal Purchasers And Precious Metal Dealers"

 

BE IT ORDAINED by the City Council of Hampton, Virginia, that the Code of the City of Hampton, Virginia, be amended and re-enacted to read as follows:

 

Chapter 27 Pawnbrokers; Junk and Secondhand Dealers

 

Sec. 27-1. Definitions.

Sec. 27-2. Violations of chapter.

Sec. 27-3. - Officers may examine records or property; warrantless search and seizure authorized.

Sec. 27-4. Identification numbers on property acquired.

Sec. 27-5 Property pawned or purchased not to be disfigured or changed.

Sec. 27-6. Record of purchases.

Sec. 27-7. Prohibited purchases.

Sec. 27-8. Retention of purchases.

Sec. 27-9. Record of sales.

Sec. 27-10. Daily Reports.

Sec. 27-11. Memorandum to be given pledger; fee; lost ticket charge.

Sec. 27-12. Interest chargeable.

 

 

Sec. 27-1. Definitions.

 

Pawnbroker means any person who lends or advances money or other things for profit on the pledge and possession of tangible personal property, or other valuable things, other than securities or written or printed evidences of indebtedness or title, 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.

 

Secondhand dealer means any person who buys, sells, barters or exchanges used or secondhand articles, including but not limited to such items as firearms, office machines, household appliances, radios, television sets, cellphones, electronic equipment, sporting equipment, photographic equipment, or any other secondhand merchandise intended to be resold for use as such. This definition does not include those persons who exclusively buy, sell, barter or exchange used or secondhand clothing, furniture and nonelectronic children's articles; nor does it include those persons who buy, sell, barter or exchange used or secondhand items defined and regulated by chapter 27.1.

 

Sec. 27-2. Violations of chapter.

 

(a) Unless otherwise specifically provided in this chapter, a violation of any provisions of this chapter shall constitute a Class 4 misdemeanor.

 

(b) In addition to any penalty that may be imposed for a violation of this chapter, upon the second conviction of any pawnbroker or secondhand dealer for a violation of this chapter, the judge of a court of competent jurisdiction may, at his discretion, revoke or suspend the license of the offender.

 

Sec. 27-3. Officers may examine records or property; warrantless search and seizure authorized.

 

Every pawnbroker or secondhand dealer and every person in the employ of such pawnbroker or secondhand dealer shall admit to his place of business, during regular business hours, any duly authorized law-enforcement officer of the City of Hampton, Virginia, or any law-enforcement official of the state or federal government. The pawnbroker or secondhand dealer or their employee shall permit the officer to (i) examine all records required to be maintained 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.

 

Sec. 27-4. Identification numbers on property acquired.

 

No pawnbroker or secondhand dealer shall 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 pawnbroker or secondhand dealer, without the consent of the chief of police of Hampton, Virginia or his designee, nor shall such dealer knowingly take in pawn, buy or acquire or keep in his possession any such property, the serial or identification number of which has been removed, changed or altered, without the consent of the chief of police of Hampton, Virginia or his designee.

 

Sec. 27-5. Property pawned or purchased not to be disfigured or changed.

 

No property of any kind received on deposit or pledged or purchased by any pawnbroker shall be disfigured or its identity destroyed or affected in any manner whatsoever, (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.

 

Sec. 27-6. Record of purchases.

 

(a) Every pawnbroker or secondhand dealer shall keep at his place of business an accurate and legible record of every transaction where an article is taken in pawn, bought or acquired by such pawnbroker or secondhand dealer in the course of his business. The information shall be recorded at the time of the transaction, on a form approved by the chief of police of Hampton, Virginia or his designee, and shall include:

 

(1) A complete description and statement of ownership of each article taken in pawn, bought or acquired from the person selling or pledging the article and the price paid for such item. The description shall include all names, initials, serial numbers or other identifying marks or monograms on each article.

 

(2) The date, time, and place of receiving the article and the initials of the pawnbroker or secondhand dealer or employee receiving the article.

 

(3) The full name, residence address, telephone number, and drivers license number or other identifying credential, as defined in subsection (c), of the person selling or pledging the article, 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) Verification of the identification by the exhibition of an identifying credential, as defined in subsection (c). The record shall contain the type of identification exhibited, the issuing agency, and the number thereon;

 

(5) A digital image of the identifying credential used by the person involved in the transaction;

 

(6) All other facts and circumstances respecting such transaction.

 

(b) In addition to the information required by subsection (a), pawnbrokers shall include the following information in their account of the transaction:

 

(1) The amount of money loaned on the article at the time of pledging the same.

 

(2) The rate of interest to be paid on such loan.

 

(3) The terms and conditions of the loan, including the period for which any such loan may be made.

 

(4) All other facts and circumstances respecting such loan.

 

(c) An identifying credential is any valid operators license, any valid chauffeurs license, or any valid identification card issued by a governmental agency. The photograph, date of birth, and signature of the person attempting to pledge or sell an article under this section must be affixed on the operators license, chauffeurs license, or identification card in order for it to qualify as an identifying credential. No operators license, chauffeurs license, or identification card shall be considered valid for the purpose of qualifying as an identifying credential if presented to pawnbroker or secondhand dealer or employee after its date of expiration.

 

(d) All records required by this section shall be retained by the pawnbroker or secondhand dealer for not less than twenty-four (24) months. Such records may be maintained by the pawnbroker or secondhand dealer in an electronic format at his place of business.

 

Sec. 27-7. Prohibited purchases.

 

(a) No pawnbroker or secondhand dealer shall take in pawn, buy or acquire any secondhand article from any seller who is under the age of eighteen (18) years.

 

(b) No pawnbroker or secondhand dealer shall take in pawn, buy or acquire any secondhand article from any seller who the pawnbroker or secondhand dealer believes or has reason to believe is not the owner of such article, unless the seller has written and duly authenticated authorization from the owner permitting and directing such sale.

 

(c) No pawnbroker or secondhand dealer shall take in pawn, buy or acquire any secondhand article without first (i) ascertaining the identity of the seller by requiring an identifying credential as defined in section 27-6, and at least one other corroborating means of identification, and (ii) obtaining a statement of ownership from the seller.

 

Sec. 27-8. Retention of purchases.

 

(a) No pawnbroker shall sell any pawn or pledge until (i) it has been in his possession for the minimum term set forth in the memorandum, but not less than thirty (30) calendar days, plus a grace period of 15 calendar days and (ii) a statement of ownership is obtained from the pawner.

 

(b) Every secondhand dealer shall retain all secondhand articles acquired by him for a minimum of fifteen (15) calendar days from the date on which a copy of the daily report required by section 27-10 is received by the chief of police of Hampton, Virginia or his designee. Until the expiration of this period, the secondhand dealer shall not sell, alter or dispose of any acquired item, in whole or in part, or remove it from the City of Hampton, Virginia.

 

Sec. 27-9. Record of sales.

 

Every pawnbroker or secondhand dealer shall keep and maintain, for at least twenty-four (24) months, an accurate and legible record of the full name and residential address of every person to whom he sells any secondhand article in its original form after the waiting period required by section 27-8. This record shall also show the full name and residential address of the seller from whom the pawnbroker or secondhand dealer acquired such article.

 

Sec. 27-10. Daily Reports.

 

(a) Every pawnbroker or secondhand dealer shall furnish each business day, by 1:00 p.m., to the chief of police of Hampton, Virginia or his designee, a true and correct report of all articles purchased, sold, bartered or exchanged or otherwise coming into his possession, during the preceding business day, except such as is purchased at public auction. The report shall include:

 

(1) The sellers or pledgers full name, residential address, and drivers license number or other identifying credential as defined in section 27-6;

 

(2) A digital image of the identifying credential used by the seller or pledger; and

 

(3) A description of the article sold or pledged. The description shall describe each article as accurately as possible and shall include any brand name, model number, serial number, initial or name or any other identifying marks found on the article.

 

(b) The report shall be submitted in an electronic format as provided by the chief of police of Hampton, Virginia or his designee.

 

(c) If the purchase, sale or acquisition occurs during a weekend or holiday, then the submittal of the electronic report required in subsection (a) shall be made no later than 1:00 p.m. the next regular business day.

 

Sec. 27-11. Memorandum to be given pledger; fee; lost ticket charge.

 

Every pawnbroker shall at the time of each loan deliver to the pawner a memorandum or note, signed by him, containing the information required by section 27-6. A lost-ticket fee of five dollars ($5.00) may be charged, provided that the pawner is notified of the fee on the ticket.

 

Sec. 27-12. Interest chargeable.

 

(a) No pawnbroker shall ask, demand or receive a greater rate of interest than ten percent per month on a loan of $25 or less, or seven percent per month on a loan of more than $25 and less than $100, or five percent per month on a loan of $100 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.

 

(b) An annual percentage rate computed and disclosed under the provisions of the federal Truth-in-Lending Act shall not be deemed a violation of this section.

 

 

Chapter 27.1 - Building Fixtures; Scrap Metal Purchasers and Precious Metal Dealers

 

Article I. Building Fixtures.

Sec. 27.1-1. Definitions.

Sec. 27.1-2. Permit required for trading in secondhand building fixtures.

Sec. 27.1-3. Permit issued by chief of police; revocation.

Sec. 27.1-4. Who deemed a dealer.

Sec. 27.1-5. Dealer required to show permit and identification.

Sec. 27.1-6. Recordkeeping requirements.

Sec. 27.1-7. Daily Reports.

Sec. 27.1-8. Records and places of business open to inspection.

Sec. 27.1-9. Exemptions from article.

Sec. 27.1-10. Penalty for violation.

 

Article II. Scrap Metal Purchasers.

Sec. 27.1-11. Definitions.

Sec. 27.1-12. Purchases of ferrous scrap.

Sec. 27.1-13. Purchases of nonferrous scrap, metal articles, and proprietary articles.

Sec. 27.1-14. Record of Purchases.

Sec. 27.1-15. Daily Reports.

Sec. 27.1-16. Records and places of business open to inspection.

Sec. 27.1-17. Purchases of materials from minors.

Sec. 27.1-18. Penalties.

 

Article III. Precious Metal Dealers.

Sec. 27.1-19. Definitions.

Sec. 27.1-20. Permit required; method of obtaining permit; no convictions of certain crimes; approval of weighing devices; renewal; permanent location required.

Sec. 27.1-21. Records to be kept; copy furnished to local authorities.

Sec. 27.1-22. Daily Reports.

Sec. 27.1-23. Officers may examine records or property; warrantless search and seizure authorized.

Sec. 27.1-24. Prohibited purchases.

Sec. 27.1-25. Dealer to retain purchases.

Sec. 27.1-26. Record of disposition.

Sec. 27.1-27. Exemptions from chapter.

Sec. 27.1-28. Penalties; first and subsequent offenses.

 

Article I. Building Fixtures.

 

Sec. 27.1-1. Definitions.

 

As used in this article, unless the context requires a different meaning:

 

Authorized scrap metal purchaser has the same meaning as provided for the term scrap metal purchaser in section 27.1-11.

 

Authorized scrap seller means any licensed plumber, electrical contractor, HVAC contractor, or building and construction contractor.

 

Secondhand building material means any secondhand heating or plumbing fixture or supplies, electric fixtures, or any wiring, gas fixtures or appliances, water faucets, pipes, locks, or any other secondhand fixtures of any kind or description used in the construction of a building, including air conditioning coils and air conditioning compressors.

 

Person means any individual, corporation, partnership, association, cooperative, limited liability company, trust, joint venture, or other private commercial entity.

 

Regularly engaged with respect to purchasing or acquiring secondhand building material means having conducted transactions involving, or having offered for sale, more than 600 pounds combined weight of secondhand building material or enters into more than 26 combined transactions annually.

 

Sec. 27.1-2. Permit required for trading in secondhand building fixtures.

 

Except as otherwise provided in this article, no person shall offer for sale or acquire any secondhand building material, fixtures or supplies without first obtaining a permit for the sale or acquisition of the same from the chief of police of Hampton, Virginia or his designee.

 

Sec. 27.1-3. Permit issued by chief of police; revocation.

 

The chief of police of Hampton, Virginia or his designee may issue, to persons regularly engaged in the business of collecting secondhand building materials for resale, a semiannual or annual permit covering all sales and acquisitions made by such persons. The chief of police may refuse to issue a permit, and may revoke any permit issued, to any person convicted of a felony or crime of moral turpitude within the three years prior to the request for the permit. The applicant shall file with the chief of police, or his designee, an application form that shall include the applicant's full name, any aliases, current address, age, date of birth, sex, and fingerprints; the name, address, and telephone number of the applicant's employer(s), if any; and the location of the applicant's place of business. A permit shall be valid for one (1) year from the date of issuance and may be renewed in the same manner as such permit was initially obtained. A fee of fifty dollars ($50) shall be charged annually for the issuance of the permit.

 

Sec. 27.1-4. Who deemed a dealer.

 

Every person who is regularly engaged in the purchasing or acquiring of secondhand building material for the purpose of resale or installation on the property of another shall be deemed a dealer within the meaning of the provisions of this article.

 

Sec. 27.1-5. Dealer required to show permit and identification.

 

Every dealer making a sale or purchase of a secondhand fixture pursuant to the provisions of this article shall first display the permit required by section 27.1-2 and also display positive photo identification to the purchaser or seller of such fixture.

 

Sec. 27.1-6. Recordkeeping requirements.

 

(a) At the time of purchasing, collecting, receiving, or acquiring a secondhand building fixture, the dealer shall be required to provide:

 

(1) The date and time of the secondhand building fixture's acquisition; and

 

(2) The address from which the property was acquired and, if available, a driver's license or other form of government identification to include the full name and date of birth of the person from whom the material was collected.

 

(b) Every dealer shall keep at his place of business an accurate and legible record of every transaction involving a secondhand building fixture that is collected, received, acquired, or purchased by the dealer in the course of his business. The account shall be recorded at the time of the transaction, on a form approved by the chief of police of Hampton, Virginia or his designee, and shall include:

 

(1) A complete and accurate description of the secondhand building fixture that is the subject of the transaction;

 

(2) All information prescribed in subsection (a) regarding date, time, location and, if available, the full name and date of birth of the person with whom the dealer conducted the transaction;

 

(3) The license plate number of the automobile or other vehicle in which the secondhand building fixture was delivered or received; and

 

(4) The number of the permit issued pursuant to section 27.1-3 in which the transaction involving a secondhand building fixture occurred.

 

(c) Records required by subsection (b) shall be maintained by the dealer at its normal place of business or at another readily accessible and secure location for a period of twenty-four (24) months. Such records may be maintained by the dealer in an electronic format.

 

Sec. 27.1-7. Daily Reports.

 

(a) Every dealer shall furnish each business day, by 1:00 p.m., to the chief of police of Hampton, Virginia or his designee, a true and correct report of every secondhand building fixture purchased, acquired, or received by him during the preceding business day. The report shall include:

 

(1) An accurate description of each secondhand building fixture purchased, acquired, or received by him;

 

(2) The date, time and location of the secondhand build fixtures acquisition;

 

(3) The number of the dealers permit issued pursuant to section 27.1-3;

 

(4) The license plate number of any automobile or other vehicle in which the secondhand building fixture was collected or received; and

 

(5) If available, the full name and date of birth of the person with whom the dealer conducted the transaction.

 

(b) The report shall be submitted in an electronic format as provided by the chief of police of Hampton, Virginia or his designee.

 

(c) If the purchase or acquisition occurs during a weekend or holiday, then the submittal of the electronic report required in subsection (a) shall be made no later than 1:00 p.m. the next regular business day.

 

Sec. 27.1-8. - Records and places of business open to inspection.

 

The records required by this article to be kept, and the places of business of all persons engaged in the acquiring, selling, receiving, or purchasing, secondhand building materials shall at all reasonable times be open to the inspection of any duly authorized law enforcement officer of the City of Hampton, Virginia, or any law enforcement official of the state or federal government.

 

Sec. 27.1-9. Exemptions from article.

 

The provisions of this article shall not apply to:

 

(1) The sale of secondhand building material taken from premises occupied by the owner, when sold by such owner on the premises, or the sale of such articles when purchased from a public utility corporation at its place of business or a governmental agency;

 

(2) Scrap metal purchasers;

 

(3) Authorized scrap sellers;

 

(4) Public utilities;

 

(5) Public transportation companies;

 

(6) Industrial and manufacturing companies;

 

(7) Marine, automobile, and aircraft salvage and wrecking companies; or

 

(8) Governmental entities.

 

Sec. 27.1-10. Penalty for violation.

 

Any person who violates this article shall be guilty of a Class 3 misdemeanor. A person convicted of a second or subsequent offense under this article is guilty of a Class 1 misdemeanor.

 

 

Article II. Scrap Metal Purchasers.

 

Sec. 27.1-11. Definitions.

 

For the purpose of this article:

 

Authorized scrap seller means licensed plumbers, electricians, HVAC contractors, building and construction contractors, demolition contractors, construction and demolition debris contractors, public utilities, transportation companies, industrial and manufacturing companies, marine, automobile, and aircraft salvage and wrecking companies, and government entities.

 

Broker means any person or his authorized agent who negotiates, purchases, sells, or offers for sale any scrap metal either directly or through an authorized agent without obtaining title to or ownership of the scrap metal.

 

Ferrous scrap means any scrap metal consisting primarily of iron, steel, or both, but excluding any scrap metal consisting primarily of stainless steel. Ferrous scrap includes large manufactured articles such as automobile bodies that may contain other substances to be removed and sorted during normal operations of scrap metal processors.

 

Metal article means any manufactured item, consisting of metal, that is usable for its originally intended purpose without processing, repairs, or alteration and that is not otherwise excluded by the definitions in this section. Examples include, without limitation, railings, copper or aluminum wire, copper pipe and tubing, plumbing fixtures, copper and aluminum gutters, copper and aluminum downspouts, and cast-iron radiators.

 

Nonferrous scrap means any scrap metal consisting primarily of (i) stainless steel or (ii) any metal other than iron or steel. Nonferrous scrap does not include aluminum beverage cans; postconsumer household items such as pots, pans, barbecue grills, and lawn chairs; used flashing removed during building renovation or demolition; or small quantities of nonferrous metals contained in large manufactured articles, such as automobile bodies and appliances.

 

Proprietary article means (i) any metal article stamped, engraved, stenciled, or otherwise marked so as to identify it as being or having been the property of a governmental entity or public utility or transportation, shipbuilding, ship repair, mining, or manufacturing company; (ii) any hard drawn copper electrical conductor, cable, or wire that is three-eighths of one inch or greater in diameter, stranded or solid; (iii) any aluminum conductor, cable, or wire three quarters of one inch or greater in diameter, stranded or solid; (iv) stainless steel beer kegs; (v) any catalytic converter from a motor vehicle exhaust system that has been detached from a motor vehicle; (vi) any telecommunications cable that is one-half of one inch or greater in diameter and that contains 50 or more individual strands of solid, insulated, color-coded copper wire, including such telecommunication cable that has been unsheathed or burned; (vii) any manhole cover; (viii) any bronze or copper cemetery plaque, urn, or marker; (ix) aluminum bleacher seats or guardrails; or (x) any mining cable that is one-half inch or greater in diameter and is composed of one or more stranded copper conductors and stamped, engraved, stenciled, or otherwise marked with Mine Safety and Health Administration or MSHA.

 

Scrap metal means any manufactured item or article consisting of or containing metal; any metal removed from or obtained by cutting, demolishing, or disassembling any building, structure, manufactured item, or article; and any other metal that is no longer used for its original purpose and that can be processed for reuse in mills, foundries, and other manufacturing facilities.

 

Scrap metal processor means a business entity in good standing authorized to conduct business in the Commonwealth that regularly utilizes machinery and equipment at one or more established locations in the normal course of business for processing and manufacturing scrap metal into prepared grades for sale as raw material to mills, foundries, and other manufacturing facilities.

 

Scrap metal purchaser means any person or business, other than an authorized scrap seller or a broker buying or selling processed scrap metal, who purchases scrap metal either directly or through an authorized agent in excess of $20,000 during any 12-month period.

 

Sec. 27.1-12. Purchases of ferrous scrap.

 

Except as provided in section 27.1-17, scrap metal processors may purchase ferrous scrap directly from any person.

 

Sec. 27.1-13. Purchases of nonferrous scrap, metal articles, and proprietary articles.

 

(a) Except as provided in section 27.1-17, scrap metal purchasers may purchase nonferrous scrap, metal articles, and proprietary articles from any person who is not an authorized scrap seller or the authorized agent and employee of an authorized scrap seller only in accordance with the following requirements and procedures:

 

(1) At the time of sale, the scrap metal purchaser shall verify the identity of the seller of any nonferrous scrap, metal article, or proprietary article by requiring a drivers license or other identifying credential, as defined in subsection (d), and at least one other corroborating means of identification; and

 

(2) The scrap metal purchaser shall record the transaction in accordance with the requirements of section 27.1-14.

 

(b) Upon compliance with the other requirements of this section and section 27.1-14 and 27.1-17, a scrap metal purchaser may purchase proprietary articles from a person who is not an authorized scrap seller or the authorized agent and employee of an authorized scrap seller if the scrap metal purchaser complies with one of the following:

 

(1) The scrap metal purchaser receives from the person seeking to sell the proprietary articles documentation, such as a bill of sale, receipt, letter of authorization, or similar evidence, establishing that the person lawfully possesses the proprietary articles to be sold; or

 

(2) The scrap metal purchaser shall document a diligent inquiry into whether the person selling or delivering the same has a legal right to do so, and, after purchasing a proprietary article from a person without obtaining the documentation described in subdivision (1), shall submit a report to the chief of police of Hampton, Virginia or his designee in accordance with section 27.1-15, and hold the proprietary article for not less than fifteen (15) days following purchase.

 

(c) The scrap metal purchaser may purchase nonferrous scrap, metal articles, and proprietary articles directly from an authorized scrap seller and from the authorized agent or employee of an authorized scrap seller.

 

(d) An identifying credential shall be any valid operators license, any valid chauffeurs license, or any valid identification card issued by a governmental agency. The photograph, date of birth, and signature of the person attempting to sell an article under this section must be affixed on the operators license, chauffeurs license, or identification card in order for it to qualify as an identifying credential. No operators license, chauffeurs license, or identification card shall be considered valid for the purpose of qualifying as an identifying credential if presented to a scrap metal purchaser or employee after its date of expiration.

 

Sec. 27.1-14. Record of Purchases.

 

(a) Every scrap metal purchaser shall keep at his place of business an accurate and legible record of every transaction where nonferrous scrap, metal articles, or proprietary articles are purchased or acquired by the scrap metal purchaser from any person who is not an authorized scrap seller or the authorized agent and employee of an authorized scrap seller. The account shall be recorded at the time of the transaction, on a form approved by the chief of police of Hampton, Virginia or his designee, and shall include:

 

(1) A complete and accurate description of every article that is the subject of the transaction;

 

(2) The date, and time, and place of receiving the article;

 

(3) The full name, residence address, telephone number, and drivers license number or other identifying credential, as defined in section 27.1-13, of the person selling the article, 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) Verification of the identification by the exhibition of an identifying credential, as defined in section 27.1-13. The record shall contain the type of identification exhibited, the issuing agency, and the number thereon;

 

(5) A digital image of the identifying credential used by the person involved in the transaction;

 

(6) The license plate number of the automobile or other vehicle in which the article was delivered;

 

(7) For all propriety articles, a digital image that is of sufficient quality to reasonably identify the subject of the image; and

 

(8) All other facts and circumstances respecting such transaction.

 

(b) All records required by this section shall be retained by the scrap metal purchaser for not less than twenty-four (24) months. Such records may be maintained by the scrap metal purchaser in an electronic format at his place of business.

 

Sec. 27.1-15. Daily Reports.

 

(a) Every scrap metal purchaser shall furnish each business day, by 1:00 p.m., to the chief of police of Hampton, Virginia or his designee, a true and correct report of all nonferrous scrap, metal articles, or proprietary articles purchased or acquired by the scrap metal purchaser from any person who is not an authorized scrap seller or the authorized agent and employee of an authorized scrap seller during the preceding business day. The report shall include:

 

(1) The sellers full name, residential address, and drivers license number or other identifying credential as defined in section 27.1-13;

 

(2) A digital image of the identifying credential used by the seller;

 

(3) A complete and accurate description of the articles purchased; and

 

(4) For all propriety articles, a digital image that is of sufficient quality to reasonably identify the subject of the image

 

(b) The report shall be submitted in an electronic format as provided by the chief of police of Hampton, Virginia or his designee.

 

(c) If the purchase or acquisition occurs during a weekend or holiday, then the submittal of the electronic report required in subsection (a) shall be made no later than 1:00 p.m. the next regular business day.

 

Sec. 27.1-16. Records and places of business open to inspection.

 

The records required by this article to be kept, and the places of business of all scrap metal purchasers, shall at all reasonable times be open to the inspection of duly authorized law-enforcement office of the City of Hampton, Virginia, or any law-enforcement official of the state or federal government.

 

Sec. 27.1-17. Purchases of materials from minors.

 

Scrap metal purchasers shall not purchase ferrous scrap, nonferrous scrap, metal articles, proprietary articles, or other scrap metal from any person under the age of 18 years.

 

Sec. 27.1-18. Penalties.

 

(a) Any scrap metal purchaser who violates any provisions of this article may be assessed a civil penalty not to exceed $7,500 for each violation. Any attorney for the City of Hampton, Virginia may bring a civil action to recover such a civil penalty. The civil penalty shall be paid into the local treasury.

 

(b) Any scrap metal purchaser who knowingly violates any provisions of this article is guilty of a Class 1 misdemeanor.

 

Article III. Precious Metal Dealers.

 

Sec. 27.1-19. Definitions.

 

For the purposes of this article, 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 article.

 

(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 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.

 

Sec. 27.1-20. 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 section 27.1-19 without first obtaining a permit from the chief of police of Hampton, Virginia or his designee.

 

(b) To obtain a permit, the dealer shall file with the chief of police an application form which includes the dealer's full name, any aliases, residential address, age, date of birth, sex, and fingerprints; the name, address, and telephone number of the applicant's employer(s), if any; and the location of the dealer's place of business. Upon filing this application and the payment of a two hundred dollar ($200) application fee, the dealer shall be issued a permit by the chief of police, provided that the applicant has not been convicted of a felony or crime of moral turpitude within seven (7) 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 article.

 

(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 of Hampton, Virginia or his designee.

 

(d) This permit shall be valid for one (1) 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 two hundred dollar ($200). No permit shall be transferable.

 

(e) Every dealer at the time of obtaining such permit shall obtain and provide to the City of Hampton, Virginia a bond secured by a corporate surety authorized to do business in this Commonwealth, in the penal sum of ten thousand dollars ($10,000.00), conditioned upon strict compliance with the terms of this article. 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 the City of Hampton, Virginia for ten thousand dollars ($10,000.00).

 

(f) 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 of Hampton, Virginia or his 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.

 

Sec. 27.1-21. Records to be kept; copy furnished to local authorities.

 

(a) Every dealer shall keep at his place of business an accurate and legible record of each purchase of precious metals or gems. The account shall be recorded at the time of the transaction, on a form approved by the chief of police of Hampton, Virginia or his designee, and shall include:

 

(1) A complete description and statement of ownership 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, telephone numbers, and drivers license number or other identifying credential, as defined in subsection (d), of the person selling or pledging the article, together with a particular description, including height, weight, date of birth, race, gender, hair and eye color, and any other identifying marks, of such person;

 

(4) Verification of the identification by the exhibition of an identifying credential, as defined in subsection (d). The record shall contain the type of identification exhibited, the issuing agency, and the number thereon;

 

(5) A digital image of the form of identification used by the person involved in the transaction; and

 

(6) All other facts and circumstances respecting such transaction.

 

(b) All records required by this section shall be retained by the dealer for not less than twenty-four (24) months. Such records may be maintained by the dealer in an electronic format at his place of business.

 

(c) 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.

 

(d) An identifying credential shall be any valid operators license, any valid chauffeurs license, or any valid identification card issued by a governmental agency. The photograph, date of birth, and signature of the person attempting to sell an article under this section must be affixed on the operators license, chauffeurs license, or identification card in order for it to qualify as an identifying credential. No operators license, chauffeurs license, or identification card shall be considered valid for the purpose of qualifying as an identifying credential if presented to dealer or employee after its date of expiration.

 

Sec. 27.1-22. Daily Reports.

 

(a) Every dealer shall furnish each business day, by 1:00 p.m., to the chief of police of Hampton, Virginia or his designee, a true and correct report of all precious metal or gems items purchased or acquired by the dealer during the preceding business day. The report shall include:

 

(1) The sellers full name, residential address, and drivers license number or other identifying credential as defined in section 27.1-21;

 

(2) A digital image of the identifying credential used by the seller; and

 

(3) A description of the article purchased. The description shall describe each article as accurately as possible and shall include any names, initials, serial numbers, or other identifying marks or monograms on each article purchased, and the true weight or carat of any gem.

 

(b) The report shall be submitted in an electronic format as provided by the chief of police of Hampton, Virginia or his designee.

 

(c) If the purchase or acquisition occurs during a weekend or holiday, then the submittal of the electronic report required in subsection (a) shall be made no later than 1:00 p.m. the next regular business day.

 

Sec. 27.1-23. Officers may examine records or property; warrantless search and seizure authorized.

 

Every dealer or his employee shall admit to his place of business, during regular business hours, any duly authorized law enforcement officer of the City of Hampton, Virginia, 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 article 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 dealer a receipt.

 

Sec. 27.1-24. 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.

 

(c) No dealer shall purchase precious metals or gems without first (i) ascertaining the identity of the seller by requiring an identifying credential as defined in section 27.1-20, and at least one other corroborating means of identification, and (ii) obtaining a statement of ownership from the seller.

 

Sec. 27.1-25. Dealer to retain purchases.

 

(a) The dealer shall retain all precious metals or gems purchased for a minimum of twenty (20) calendar days from the date on which a copy of the daily report required by section 27.1-21 is received by the chief of police of Hampton, Virginia or his designee. 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 City of Hampton, Virginia.

 

(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 twenty (20) calendar days after receiving such article and precious metals or gems.

 

Sec. 27.1-26. Record of disposition.

 

Each dealer shall maintain for at least twenty-four (24) months an accurate and legible record of the full 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 section 27.1-25. This record shall also show the full name and address of the seller from whom the dealer purchased the item.

 

Sec. 27.1-27. Exemptions from chapter.

 

(a) The chief of police of Hampton, Virginia or his designee, may waive by written notice implementation of any one or more of the provisions of this article, except section 27.1-24, for particular numismatic, gem, or antique exhibitions or craft shows sponsored by nonprofit organizations, provided that the purpose of the exhibitions is nonprofit in nature, notwithstanding the fact that there may be casual purchases and trades made at such exhibitions.

 

(b) The provisions of this article shall not apply to the sale or purchase of coins.

 

(c) The provisions of this article shall not apply to any bank, branch thereof, trust company or bank holding company, or any wholly owned subsidiary thereof, engaged in buying or selling gold and silver bullion.

 

Sec. 27.1-28. Penalties; first and subsequent offenses.

 

(a) Any person convicted of violating any of the provisions of this article 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 this chapter, the chief of police of Hampton, Virginia may revoke the dealer's permit for one (1) full year from the date the conviction becomes final. Such revocation shall be mandatory for two (2) full years from the date the conviction becomes final upon a second conviction.

 

Adopted at the regular meeting of the City Council of the City of Hampton, Virginia held on November 13, 2013. Effective date January 1, 2014.

 

Signed by ____________________________ Date _________________

George E. Wallace, Mayor

 

 

Attested by ____________________________ Date _________________

Katherine K. Glass, CMC

Clerk of the Council