Used Merchandise Dealer

4.989 Used Merchandise Dealer – Requirements.

(1) As used in this section, the following words and phrases mean:

(a) Approved identification. A currently valid identification issued by a government agency that includes a physical description and photograph of the person and bears the signature of the person.

(b) Chief of police. The person authorized by the city manager to carry out the duties of the chief of the Eugene Police Department, or his or her designee.

(d) Pawnbroker. A person, partnership, corporation or other business association licensed as a pawnbroker under ORS chapter 726.

(e) Pledge. Any article deposited with a pawnbroker in the course of the business of the pawnbroker as defined in paragraph (d) of this subsection.

(f) Precious metal. Gold in eight karat or greater purity, silver, platinum or palladium. Precious metal does not include unrefined metal ore, an electronic product or any part of a mechanical system on a motor vehicle that contains precious metal as a result of the vehicle manufacturing process.

(g) Purchase. The buying, exchanging, transferring, collecting, consigning or otherwise acquiring of regulated property from another person not a used merchandise dealer, for resale, exchange or transfer by the purchaser. It includes taking possession of regulated property with an expressed or implied agreement or understanding to return regulated property at a subsequent time at a stipulated price or for the payment of a storage or handling fee.

1. Except for property excluded in paragraph (h)2. below, any used or secondhand personal property, including, but not limited to, precious metals and gems; watches, jewelry, and household items containing precious metals or precious gems; audio and video equipment and media; photographic and optical equipment; electrical office equipment; yard and garden tools; power equipment and tools; hand tools; telephones or telephone equipment; musical instruments; firearms; and sporting equipment.

2. The term “regulated property” does not include any of the following property: vehicles required to be registered with the state Motor Vehicles Division; boats required to be certified by the state Marine Board; books; collectable trading cards (e.g., baseball trading cards or movie trading cards); glassware; furniture; clothes; refrigerators, stoves, washers, dryers, window air conditioner units, and other similar major household appliances; small kitchen appliances; or property that is purchased for investment purposes, limited to the following:

a. Gold bullion bars or rounds (0.995 fine or better);

b. Silver bullion bars or rounds (0.995 fine or better);

c. Palladium and platinum bars or rounds (0.995 fine or better);

d. All tokens, coins, or money, whether commemorative or an actual medium of exchange, adopted by a domestic or foreign government as part of its currency;

e. Postage stamps, stamp collections and philatelic items; or

f. Privately manufactured coins.

1. A person who engages in, conducts, manages, or carries on any business that, as part or all of its business:

a. Purchases regulated property; or

b. Lends money on security of regulated property.

2. A used merchandise dealer does not include:

a. A person who engages in, conducts, manages, or carries on any business that does not buy regulated property outright, but occasionally accepts in trade regulated property as part or full payment for new articles, where such business is incidental to the primary business of the sale of new articles;

b. A person who engages in, conducts, manages, or carries on any business that deals exclusively in the purchase and sale of used whole automobiles, books, trading cards and sports memorabilia, clothing, furniture, major household electric or gas appliances, or farm implements and machinery; or

c. A person who engages in, conducts, manages, or carries on any nonprofit corporation or association that purchases, sells or otherwise exchanges only donated articles.

(2) No person with a felony conviction for Burglary, Theft, Manufacture of a Controlled Substance or Schedule I or II Drug Possession may be permitted to own or operate a used merchandise business.

(a) At the time of purchase, a used merchandise dealer shall accurately record: the description of the regulated property purchase; the address, date of birth and current telephone number of the person from whom the regulated property was purchased; and the person’s approved identification.

(b) The used merchandise dealer shall record an identifying description and take a discernible, clear photograph of all jewelry, gems and precious metal items. Pawnbrokers accepting a pledge are not required to photograph the pledged item.

(c) Used merchandise dealers shall record purchases of regulated property via an automated electronic reporting system approved by the city.

(d) All records of purchases shall be kept in an orderly manner on the used merchandise dealer’s business premises and open for reasonable inspection by peace officers upon their demand. Each used merchandise dealer shall keep a paper record of each purchase bearing the signature of the customer for a period of one year.

(a) Within 12 hours of a purchase, a used merchandise dealer shall input and transmit the recorded information required under subsection (3) using the automated electronic reporting system approved by the city.

(b) Only reports containing complete information shall be deemed to comply with this section.

(c) In the event that the automated electronic reporting system becomes inoperable, a used merchandise dealer’s computer system becomes inoperable, or other event that makes reporting within the time allowed by subsection (a) of this subsection impossible, the used merchandise dealer shall immediately report the occurrence of such event to the chief of police. The chief of police may suspend the reporting requirements of subsection (a) of this subsection for a reasonable period until electronic reporting can resume. Once the chief of police determines that reporting can resume, used merchandise dealers must, within 12 hours, input and transmit the information required under subsection (3) for all purchases made during any period reporting was suspended by the chief of police using the approved automated electronic reporting system.

(5) Reporting fees. The city manager shall establish fees for the use of an automated electronic reporting system in accordance with the procedures of section 2.020 of this code. Such fees shall reflect the costs associated with providing electronic automated reporting system services to used merchandise dealers. Used merchandise dealers shall be charged the fees on an annual basis, and the fees shall become due 45 days after the date billed.

(a) A used merchandise dealer shall not:

1. Purchase regulated property with serial numbers, personalized inscriptions or initials, or other identifying marks, which are or have been altered, obliterated, removed, or otherwise rendered illegible;

2. Purchase regulated property from a person under the age of 18 years;

3. Purchase regulated property from a person who is obviously under the influence of drugs or intoxicating liquor;

4. Knowingly purchase regulated property from a person who is not the owner of the regulated property or parent or guardian of the owner of the regulated property; or

5. Remove gemstones from jewelry or alter jewelry at the time of purchase or thereafter, or ask the seller to remove gemstones or alter jewelry at time of purchase.

(b) A used merchandise dealer shall comply with all applicable federal, state, and local laws and regulations.

(a) Regulated property purchased by any used merchandise dealer shall not be sold for a period of 14 full days after the date the report required in subsection (4) is received by the city. The used merchandise dealer shall maintain the purchased property in substantially the same form as purchased and shall not commingle the property in a manner that precludes identification during this 14-day holding period. The purchased property shall be located on the business premises during normal business hours during this holding period so that it can be inspected as provided in subsection (8). The 14-day holding period does not apply to a pledge held by a pawnbroker.

(b) Upon reasonable belief that the purchased property is the subject of theft, the chief of police may provide notice to any used merchandise dealer not to dispose of any specifically described property purchased. The used merchandise dealer shall retain the property in substantially the same form as purchased and shall not remove gemstones from, or make other alterations to, pieces of jewelry. Upon receipt of notice pursuant to this subsection, the used merchandise dealer shall not sell, exchange, dismantle or otherwise dispose of the property for a period of time, as determined and stated in the notice by the chief of police, not to exceed 180 days from the date of purchase.

(8) Inspection of used merchandise dealers and regulated property. Upon presentation of official identification, any peace officer may enter onto the business premises of any used merchandise dealer to ensure compliance with the provisions of subsections (1) – (7). The inspection shall be for the limited purpose of inspecting any regulated property purchased by the dealer, held by the dealer pursuant to subsection (7), or the records incident thereto. Any inspection pursuant to this subsection shall only be authorized to occur during normal business hours.

(9) Administrative rules. The city manager or the manager’s designee is authorized to promulgate rules necessary to carry out the provisions of this section following the procedures of section 2.019 of this code.

(a) Any peace officer may enforce the provisions of this section 4.989.

(b) If it appears to the city manager that a used merchandise dealer has repeatedly and substantially violated this section or other laws applicable to used merchandise dealers, the city manager may initiate judicial proceedings for injunctive relief to prohibit the person from acting as a used merchandise dealer and to prohibit the purchase or sale of regulated property at the location where the violations occurred.

(11) Penalties. Violation of any of the requirements in subsections (1) – (8) of this section or the rules adopted pursuant to subsection (9) of this section is subject to punishment as provided in subsection 4.990(10). Each act that violates section 4.989 or any of the rules adopted pursuant to subsection (9) of this section is a separate offense.