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HomeMy WebLinkAbout10-95REVISED MARCH 9, 2010 MARCH 23, 2010 10 -83 10 -95 ORDINANCE FIRSTREADING SECOND READING (CARRIED 6 -0 LOST LAID OVER WITHDRAWN ) PURPOSE: AMEND ORDINANCE RELATING TO ELECTRONIC SUBMISSION OF PAWNSHOP & SECONDHAND ARTICLE AND SECONDHAND JEWELRY DEALER RECORDS AND HOLDING PERIODS FOR SECONDHAND ARTICLES AND SECONDHAND JEWELRY INITIATED BY: POLICE DEPARTMENT A GENERAL ORDINANCE OF THE CITY OF OSHKOSH REPEALING AND RECREATING SECTION 8 -64 AND SECTION 8 -65 OF THE CITY OF OSHKOSH MUNICIPAL CODE PERTAINING TO SUBMISSION OF PROPERTY TRANSACTION RECORDS FOR PAWNSHOPS AND SECONDHAND DEALERS AND HOLDING PERIODS FOR SECONDHAND ARTICLES AND SECONDHAND JEWELRY The Common Council of the City of Oshkosh does ordain as follows: SECTION 1. That Section 8 -64 of the Oshkosh Municipal Code pertaining to property transaction records for pawnshops, secondhand article and secondhand jewelry dealers is hereby repealed and recreated to read as follows: SECTION 8 -64 PROPERTY TRANSACTION RECORDS For each transaction of purchase, receipt, or exchange of any secondhand article or secondhand jewelry from a customer, a pawnbroker, secondhand article or secondhand jewelry dealer shall electronically submit the required property transaction information to an electronic reporting service specified by the Oshkosh Police Department by the close of business each day according to the following procedures. (a) Pawnbrokers, secondhand article and secondhand jewelry dealers using point of sale software shall ensure compatibility of their software with the specified electronic reporting service, and shall electronically transfer all required information from their computer to the specified electronic reporting service via internet connection. (b) Pawnbrokers, secondhand article and secondhand jewelry dealers not using point of sale software, but having 200 or more reportable transactions during the previous calendar year, shall either acquire point of sale software and adhere to the requirements set forth in paragraph (a) above; or, if the specified electronic MARCH 9, 2010 MARCH 23, 2010 10 -83 10 -95 ORDINANCE FIRSTREADING SECOND READING reporting service allows, manually enter all reportable transactions into the database via internet connection. (c) Pawnbrokers, secondhand article and secondhand jewelry dealers subject to electronic reporting shall take a color, digital photograph of every item purchased, received, or exchanged that does not have a unique serial or identification number affixed. This section specifically includes jewelry, coins, currency, and bullion. One group photo shall suffice for mass items acquired in one transaction. When a photograph is taken it must be maintained in such a manner that it can be readily matched and correlated with all other records of the same transaction, and must be made available for inspection by law enforcement for a period of not less than one year from the date of transaction. (d) Electronic submission of property transaction information and digital photography of property shall be encouraged but not required for pawnbrokers, secondhand article and secondhand jewelry dealers having fewer than 200 reportable transactions during the previous calendar year. When electronic submission of reportable transactions is not made according to the provisions set forth in paragraphs (a) or (b) above, Property Transaction Forms shall be manually completed and submitted according to the following procedures. (1) Forms shall be obtained from the Oshkosh Police Department. Forms are identified by number and the pawnbroker, secondhand article or secondhand jewelry dealer shall be solely responsible for each form. A copy of each form shall be provided to the Oshkosh Police Department upon request. Each form must be accounted for by the pawnbroker, secondhand article or secondhand jewelry dealer. (2) This form shall be completed by the pawnbroker or secondhand article or secondhand jewelry dealer and signed by the customer. (3) The form shall be completed in ink. Entries must be legible. No entry on such form may be erased, mutilated or changed. (4) The form shall be completed in its entirety. All articles must be described and documented in detail sufficient to differentiate the article from other like articles. If the item has a serial number or other identifying information or unique characteristics such information shall be noted on the form. (5) The pawnbroker, secondhand article or secondhand jewelry dealer shall retain an original of each form for not less than one year from the date of the transaction. Duplicate forms shall be provided to law enforcement agencies upon request. (6) Forms shall be made available for inspection during business hours by the Oshkosh Police Department or other law enforcement agency upon request. MARCH 9, 2010 MARCH 23, 2010 10 -83 10 -95 ORDINANCE FIRSTREADING SECOND READING (7) Each form shall be physically kept with the article(s) detailed upon the form for the required holding period. (8) The pawnbroker, secondhand article or secondhand jewelry dealer shall, in addition to the property transaction forms, keep a written inventory and records of declaration of ownership as required by state statute. SECTION 2. That Section 8 -65(b) of the Oshkosh Municipal Code pertaining to holding period for secondhand articles and secondhand jewelry is hereby repealed and recreated to read as follows: (b) Any secondhand article or secondhand jewelry, purchased or received by a secondhand dealer as a secondhand article shall be kept on the secondhand dealers premises or other place for safekeeping for not less than 21 days after the date of purchase or receipt. SECTION 3. That Sections 8 -65 (c) — (f) pertaining to the holding period for secondhand articles and secondhand jewelry be renumbered Sections 8 -65 (d) — (g). SECTION 4. That Section 8 -65 (c) pertaining to the holding period for secondhand articles and secondhand jewelry when submitting electronic reports is hereby created to read as follows: (c) If a pawnbroker, secondhand article or secondhand jewelry dealer is required or otherwise elects to submit electronic reports under section 8 -64, the secondhand article or secondhand jewelry purchased or received shall be kept on the pawnbroker's or secondhand dealer's premises or other place for safekeeping for not less than 7 days after the date of the purchase or receipt. SECTION 5. This ordinance shall be in full force and effect from and after its passage and publication. SECTION 4. Publication Notice. Please take notice that the City of Oshkosh enacted ordinance #10 -XXX AMEND ORDINANCE RELATING TO ELECTRONIC SUBMISSION OF PAWNSHOP & SECONDHAND ARTICLE AND SECONDHAND JEWELRY DEALER RECORDS AND HOLDING PERIODS FOR SECONDHAND ARTICLES AND SECONDHAND JEWELRY, on March 23, 2010. The ordinance would require pawnbrokers, secondhand article and secondhand jewelry dealers having 200 or more reportable transactions in a calendar year to electronically submit records relating to those transactions to an electronic reporting service designated by the police department. The ordinance also changes the holding period for secondhand articles or secondhand jewelry from 15 to 21 days if electronic reports are not submitted and 7 days if electronic reports are submitted. MARCH 9, 2010 MARCH 23, 2010 10 -83 10 -95 ORDINANCE FIRSTREADING SECOND READING The full text of the ordinance may be obtained at the Office of the City Clerk, 215 Church Avenue and through the City's website at www.ci.oshkosh.wi.us Clerk's phone 920/236-5011. MEMORANDUM TO: Honorable Mayor and Members of the Common Council FROM: Kelly Kent, Captain of Investigative Services Scott Greuel, Chief of Police DATE: March 17, 2010 RE: Proposed Change to Oshkosh City Ordinance Chapter 8, Article VIII On March 3, 2010 I submitted a memo to you outlining the background, analysis, fiscal impact and recommendation to amend City Ordinance Chapter 8, Article VIII relating to pawn brokers and secondhand article and jewelry dealers. The proposed amendment involves a change to Section 8 -64 requiring pawn brokers and secondhand article and jewelry dealers having more than two hundred reportable transactions in a year to report them electronically to a service designated by the Oshkosh Police Department. It's our intent to designate LeadsOnline for this purpose. The proposed amendment also includes a change to Section 8 -65 modifying the holding period that a business is required to keep newly acquired property on their premises before it can be sold. In my previous memo I noted that Wisconsin Statute 134.71(8)(d)2 and 134.71(8)(d)3 requires a holding period of twenty one days, but our current city ordinance only calls for a holding period of fifteen days. Our city ordinance needs to be modified to reflect the correct holding period. After further researching the holding period requirements, there is a new provision in State Statute 134.71(8)(d)3m that requires businesses subject to electronic reporting to hold property not less than seven days after the report is submitted. This point was overlooked in my previous memo and the attached draft copy of the ordinance contains language to incorporate a new holding period of seven days for businesses that report their transactions electronically. Businesses with fewer than two hundred transactions in a year that elect to report using the paper system will still be subject to the twenty one day holding period. We ask the Common Council to include this latest revision in the amended ordinance to reflect the correct holding periods for all businesses. Respectfully Submitted, Kelly A. Kent Captain of Investigative Services r I - IT) A4, e, a t ( Scott D. Greuel Chief of Police Mark A• Rohloff City Manager MEMORANDUM TO: Honorable Mayor and Members of the Common Council FROM: Kelly Kent, Captain of Investigative Services Scott Greuel, Chief of Police DATE: March 3, 2010 RE: Proposed Change to Oshkosh City Ordinance Chapter 8, Article VIII BACKGROUND Criminals often sell stolen articles and jewelry to local pawn shops and secondhand dealers for a cash profit. Such transactions are governed by Wisconsin Statute 134.71 titled "Pawnbrokers and Secondhand Article and Jewelry Dealers." The statute defines the applicable terms, establishes licensing procedures and fees, describes transaction and reporting requirements, enumerates penalties for offenders, and authorizes municipalities to enact local ordinances. Wisconsin Statute 134.71 is adopted by Oshkosh City Ordinance Chapter 8, Article VIII, titled "Pawnbrokers and Secondhand Article and Jewelry Dealers." Among other things, the city ordinance specifies procedures for completing a Property Transaction Record of each reportable transaction and providing a paper copy to the Oshkosh Police Department. The City of Oshkosh currently has twelve licensed establishments that purchase secondhand property, listed in the following table: BUSINESS ADDRESS LICENSE A &E Jewelers 1755 W. 7 Av. 2" Hand Article & Jewelry Chief Coin Company 726 Powers St. 2" Hand Article & Jewelry Crescent Moon Antiques 537 N. Main St. 2" Hand Article GameStop 2087 Witzel Av. 2" Hand Article Hollywood Video /GameCrazy 1132 S. Koeller St. 2" Hand Article Hollywood Video /GameZone 1828 Jackson St. 2" Hand Article Main Street Resale 656 N. Main St. 2" Hand Article & Jewelry Mister Money 130 N. Koeller St. 2" Hand Article, Jewelry & Pawnbroker Originals Mall of Antiques 1475 S. Washburn St. Mall or Flea Market Precious Metal Recycling 1407 W. 4 Av. 2" Hand Article & Jewelry Reimer Jewelers 11 Waugoo Av. 2" Hand Jewelry Star Gallery 1112 Oregon St. 2" Hand Article & Jewelry Licensing fees are expressly established by Wisconsin Statute 134.71(11) as follows: Secondhand Article License: Secondhand Jewelry License: Mall or Flea Market License: Pawnbroker's License: ANALYSIS $27.50 per year $30.00 per year $165 per year $210.00 per year Following are the number of burglaries and thefts, excluding auto thefts, reported to the Oshkosh Police Department over the last five years. This table is included to put into perspective the potential number of paper records that must be examined by OPD Detectives each year. YEAR BURGLARIES THEFTS TOTAL 2005 297 1496 1793 2006 313 1748 2061 2007 392 1925 2317 2008 460 1 1767 12227 2009 359 1 1679 12038 Over this period, our clearance rate has averaged 24 %, which is higher than state and national averages but still lower than we would like. The reported value of property lost to theft in 2009 alone was $1,334,252, with 36% recovered by police. We would also like to see the percentage of recovered property increase. The Property Transaction Record forms completed by license holders are saved until they are picked up by an OPD Detective at an interval determined by the volume of business, or as needed on a case -by -case basis. Detectives will often have to sort through large stacks of papers looking for stolen property or suspicious transactions, a process that's extremely time - consuming and inefficient. Computer technology has improved since the city ordinance was first enacted, and options now exist for license holders to report transactions electronically to a secure, central database that can be searched by authorized law enforcement officers with an internet connection. Electronic reporting would allow us to search records much faster and more efficiently than we can with our current paper system. However, moving to an electronic reporting format would require a change to Section 8 -64 of our city ordinance. There are three electronic reporting services available in our area. First is the North -East Wisconsin Property Reporting System (NEWPRS), recently created by the Green Bay Police Department and primarily used by agencies in Brown County. Second is the Automated Pawn System (APS), created by the Minneapolis Police Department and primarily used by agencies in Minnesota and western Wisconsin. Both services offer 2 geographically restricted records, limited searching capabilities, and may require a portion of the cost to be paid by the licensed businesses that are required to report. The third service, and by far the best option, is LeadsOnline which is headquartered in Dallas, Texas and which provides nationwide coverage. LeadsOnline has the largest database and most comprehensive searching features among all the service providers. It's also the only service that's paid for entirely by law enforcement with no cost to local businesses. LeadsOnline is already used extensively by other law enforcement agencies in the Fox Valley, including the Appleton, Grand Chute, Menasha, Omro, and Winneconne Police Departments. In addition, the Fox Valley's largest pawnbrokers and secondhand dealers are already reporting electronically to LeadsOnline. This includes all Mister Money and Gamestop stores, which account for a majority of reportable transactions in Oshkosh. It also includes Pawn America in Grand Chute, Fast -N -Easy in Menasha, and all other secondhand dealers in Appleton. These are all stores where criminals from Oshkosh commonly go to sell their stolen property. FISCAL IMPACT The annual subscription to LeadsOnline is $4,308.00. This cost includes unlimited searching of records throughout Wisconsin and adjoining states, with the ability to save searches and receive email alerts when stolen property is received. After completing a free trial period with LeadsOnline, the OPD is convinced of its value and secured alternative funding to pay the subscription for 2010. We plan to budget for continued service thereafter. The cost of this subscription will be offset by the savings in man-hours spent searching paper records. The hourly pay rate for a Detective is $29.68 and for a Detective II is $30.37. If we can assume an average pay rate of $30.00 per hour, the $4,308.00 subscription would pay for itself after 143.6 hours. This translates to 24 minutes a week for each of our seven Detectives. More importantly, the enhanced searching capabilities will allow us to improve our clearance rates and recover a higher percentage of stolen property, resulting in dollars saved for those members of the community who are victims of crime. All of this will be accomplished at no cost to local businesses. I have contacted ownership or management at all of our licensed pawnshops and secondhand dealers to make them aware of this proposed change, and none of them have expressed opposition. RECOMMENDATION Based on the above information, it's our recommendation that Oshkosh City Ordinance Chapter 8, Article VIII, be amended to reflect the changes noted on the attached draft copy. The primary change is a requirement under Section 8 -64 for all licensed pawnbrokers and secondhand article and jewelry dealers having more than 200 reportable 3 transactions in a calendar year to electronically submit the required property transaction information to an electronic reporting service specified by the Oshkosh Police Department. The Oshkosh Police Department intends to specify LeadsOnline as the electronic reporting service, at no cost to local businesses. Smaller businesses having fewer than 200 reportable transactions in a calendar year would be allowed to continue using the paper format. One additional recommended change is under Section 8 -65 to bring the holding period required for secondhand dealers in line with the requirement under Wisconsin Statute 134.71(8)(d)2. A holding period specifies the amount of time a business is required to keep newly acquired property on their premises before it can be sold, and exists so that law enforcement has time to investigate suspicious transactions while the property is still on site. City ordinance currently calls for a holding period of 15 days but Wisconsin Statute requires a holding period of 21 days. The city ordinance needs to be changed to comply with the holding period required by state statute. It's our hope the Common Council agrees with our assessment and approves the changes recommended above. Respectfully Submitted, Kelly A. Kent Captain of Investigative Services Scott D. Greuel Chief of Police Mark R. Rohloff City Manager 4 PROPOSED CHANGES: OSHKOSH CITY ORDINANCE CHAPTER 8, ARTICLE VIII ARTICLE VIII. PAWNBROKERS AND SECONDHAND ARTICLE AND JEWELRY DEALERS SECTION 8 -62 STATE STATUTES ADOPTED Except as otherwise specifically provided by this article, all provisions of Section 134.71 Wis. Stats. defining and describing the regulations with respect to pawnbrokers and secondhand article and secondhand jewelry dealers are hereby adopted by reference and made a part of this code as if fully set forth herein. It is the intention of this article to include within such references all provisions of section 134.71 Wis. Stats. in effect at the time of adoption of this article together with any applicable revisions and all future recodifications, renumberings, and amendments unless otherwise expressly provided in such references. It is the intention of this article that any act required to be performed or prohibited by section 134.71 Wis. Stats. presently in effect or as may be amended in the future is an act required to be performed or is an act prohibited by this section. City of Oshkosh Municipal'Codes Revisions thru 08/28/07 City of Oshkosh Chapter 8 — Page 22 Municipal Codes SECTION 8 -63 LICENSE REQUIRED No person shall carry on the business of a pawnbroker, or secondhand article or secondhand jewelry dealer within the city without first having obtained a license therefor. SECTION 8 -63.1 DEFINITIONS (a) "Article" means any of the following articles except jewelry: (1) Audio - visual equipment, including but not limited to stereos, cassette recorders, compact disc players,'stereo components, cameras, videotape recorders, video cameras, portable stereos, audio tapes, compact discs, recording tapes, video tapes, albums, visual or electromagnetic tapes, and similar materials. (2) Bicycles. (3) China. (4) Computers, printers, software, hardware, and computer supplies. (5) Computer games and toys. (6) Crystal. (7) Electronic equipment. (8) Fur coats and other fur clothing. (9) Ammunition and knives. (10) Microwave ovens. (11) Office equipment. (12) Pianos, organs, guitars, keyboards and other musical instruments. (13) Silverware and flatware. (14) small electrical appliances. (15) telephones and answering machines. (b) Any word not defined herein shall have that meaning specified within section 134.71 Wis. Stats. SECTION 8 -64 PROPERTY TRANSACTION RECORDS For each transaction of purchase, receipt, or exchange of any secondhand article or secondhand jewelry, from a customer, a pawnbroker, secondhand article or secondhand jewelry dealer shall GOFnpleete electronically submit the Vie required property transaction ferm information to an electronic reporting service specified by the Oshkosh Police Department by the close of business each day according to the following procedures (a) Pawnbrokers secondhand article and secondhand iewelry dealers using point of sale software shall ensure compatibility of their software with the specified electronic reporting service, and shall electronically transfer all required information from their computer to the specified electronic reporting service via internet connection. (b) Pawnbrokers secondhand article and secondhand jewelry dealers not using point of sale software but having 200 or more reportable transactions during the previous calendar year, shall either acquire point of sale software and adhere to the requirements set forth in paragraph (a) above; or, if the specified electronic reporting service allows, manually enter all reportable transactions into the database via internet connection. (c) Pawnbrokers, secondhand article and secondhand jewelry dealers subject to electronic reporting shall take a color, digital photograph of every item purchased, received, or exchariged that does not have a unique serial or identification number photo shall suffice for mass items acquired in one transaction. When a photograph taken it must be maintained in such a manner that it can be readily matched and correlated with all other records of the same transaction, and must be made available for inspection by law enforcement for a period of not less than one year from the date of transaction. (d) Electronic submission of property transaction information and digital photography of Property shall be encouraged but not required for pawnbrokers, secondhand article and secondhand iewelry dealers having fewer than 200 reportable transactions during the previous calendar year. When electronic submission of reportable transactions is not made according to the provisions set forth in paragraphs (a) or (b) above, Property Transaction Forms shall be manually completed and submitted according to the following procedures. (e1) Forms shall be obtained from the Oshkosh Police Department. Forms are identified by number and the pawnbroker, secondhand article or secondhand jewelry dealer shall be solely responsible for each form. A copy of each form shall be provided to the Oshkosh Police Department upon request. Each form must be accounted for by the pawnbroker, secondhand article or secondhand jewelry dealer. (b2) This form shall be completed by the pawnbroker or secondhand article or secondhand jewelry dealer and signed by the customer. (s3) The form shall be completed in ink. Entries must be legible. No entry on such form may be erased, mutilated or changed. City of Oshkosh Municipal Codes Revisions thru 08128107 City of Oshkosh Chapter 8 — Page 23 Municipal Codes (d4) The form shall be completed in its entirety. All articles must be described and documented in detail sufficient to differentiate the article from other like articles. If the item has a serial number or other identifying information or unique characteristics such information shall be noted on the form. (efj) The pawnbroker, secondhand article or secondhand jewelry dealer shall retain an original of each form for not less than one year from the date of the transaction. Duplicate forms shall be provided to law enforcement agencies upon request. ( #6) Forms shall be made available for inspection during business hours by the Oshkosh Police Department or other law enforcement agency upon request. (g7) Each form shall be physically kept with the article(s) detailed upon the form for the required holding period. ( #8) The pawnbroker, secondhand article or secondhand jewelry dealer shall, in addition to the property transaction forms, keep a written inventory and records of declaration of ownership as required by state statute. SECTION 8 -65 HOLDING PERIODS (a) Any secondhand article or secondhand jewelry purchased or received by a pawnbroker as a secondhand article shall be kept on the pawnbroker's premises or other place for safekeeping for not less than 30 days after the date of purchase or receipt, unless the person known by the pawnbroker to be the lawful owner of the secondhand article or secondhand jewelry recovers it. (b) Any secondhand article or secondhand jewelry, purchased or received by a secondhand dealer as a secondhand article shall be kept on the secondhand dealers premises or other place for safekeeping for not less than 4 -5-21 days after the date of purchase or receipt. (c) Subsections (a) and (b) above shall not apply to articles consigned to a pawnbroker, secondhand article or secondhand jewelry dealer. (d) During the holding period the secondhand article or secondhand jewelry shall be held separate and apart from any other merchandise carried by the dealer and shall not be altered or modified in any manner. (e) During the holding period the pawnbroker, secondhand article or secondhand jewelry dealer shall permit any law enforcement officer to inspect the article. Articles held off premises shall be made available for inspection under this section within 24 hours, or a reasonable time in the case of weekends or holidays, of a request by a law enforcement officer. (f) Any law enforcement officer who has reason to believe any secondhand article or secondhand jewelry was not sold or exchanged by the lawful owner may direct a pawnbroker, secondhand article or secondhand jewelry dealer to hold that article for a reasonable length of time which the law enforcement officer considers necessary to identify it. SECTION 8 -66 MINORS No pawnbroker, secondhand article or secondhand jewelry dealer shall engage in a transaction of purchase, exchange or receipt of any secondhand article or secondhand jewelry from a minor unless the minor is accompanied by the minor's parent or guardian. City of Oshkosh Municipal Codes Revisions thru 08128107 City of Oshkosh Chapter 8 — Page 24 Municipal Codes SECTION 8 -67 COINS, CURRENCY, AND BULLION Any pawnbroker, secondhand article or secondhand jewelry dealer receiving any coin or currency, any gold or silver coin or gold or silver bullion shall not be required to comply with the holding periods within section 8 -65 but shall otherwise be required to comply with the provisions of this article. SECTION 8 -67.1 RIGHT TO INSPECT A license holder under this article shall make available for inspection, by any law enforcement officer at any reasonable time, the licensed premises and any items on the licensed premises. Any items stored offpremises shall be made available for inspection under this section upon request by a law enforcement officer. SECTION 8 -68 PENALTIES (a) Upon conviction for a first offense under this article, a person shall forfeit not less than $75 nor more than $1000. (b) Upon conviction for a second offense under this article, a person shall forfeit not less than $525 nor more than $2000.