Last Modified on 05/07/2009 09:05:54Chapter 19 LICENSES*
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Cross references: Businesses, ch. 10; swap meet operations, § 10-33 et seq.; pawnbroker transaction fee, § 10-150 et seq.; business succession and liability law, § 13-4 et seq.; privilege and excise taxes, ch. 14; receiving property from minors, § 23-90; pawnshop hours of operation, § 23-92.
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Article I. In General
Sec. 19-1. Definitions.
Sec. 19-2. Compliance with departmental regulations.
Sec. 19-3. License required.
Sec. 19-4. Display of license; duration and renewal; transfer; proration of fee; change of information.
Sec. 19-5. Schedule of fees.
Sec. 19-6. Applications– Forms; fees.
Sec. 19-6.01. Applications; additional requirements.
Sec. 19-7. Applications– Statement of applicant's availability at premises.
Sec. 19-8. Applications– Processing and approval by departments.
Sec. 19-8.01. Applications– Criminal history record information review.
Sec. 19-8.02. Change of location.
Sec. 19-9. Revocation of license.
Sec. 19-10. Suspension of license.
Sec. 19-10.1. Consent agreements.
Sec. 19-10.2. Civil sanctions.
Sec. 19-10.3. Jurisdiction of court.
Sec. 19-10.4. Commencement of a civil action.
Sec. 19-10.5. Admission or denial of allegation in a civil complaint; hearing; findings of court; civil sanction.
Sec. 19-10.6. Appeal of court decision.
Sec. 19-11. Special requirements– Auction houses and secondhand dealers.
Sec. 19-11.1. Reserved.
Sec. 19-11.2. Special requirements– Scrap metal dealers.
Sec. 19-11.3. Police officer hold on property.
Sec. 19-11.4. Business succession and liability.
Article II. License Appeal Board
Sec. 19-12. Creation; membership; terms; duties.
Sec. 19-13. Appeals procedure.
Sec. 19-14. Hearing by Board.
Sec. 19-15. Notice of denial, nonrenewal, revocation or suspension– When final.
Sec. 19-16. Penalty.
Secs. 19-17– 19-19. Reserved.
Article III. Disposition of Allegedly Stolen Property
Sec. 19-20. Scope.
Sec. 19-21. Property included.
Sec. 19-22. Initiation of petition.
Sec. 19-23. Service of the petition; notice of hearing.
Sec. 19-24. Claimant's rights.
Sec. 19-25. Conduct of hearing.
Sec. 19-26. Hearing continuance.
Sec. 19-27. Judicial review.
Sec. 19-28. Hearing officer.
Sec. 19-29. Release of seized property.
Sec. 19-30. Release of unseized adjudicated property.
Sec. 19-31. Limited effect of hearing officer decision.
ARTICLE I.
IN GENERALSec. 19-1. Definitions.
In this article, unless the context otherwise requires:
1. Applicant means the person owning, operating, and/or conducting the business to be licensed, including all persons financially interested in the business, the manager(s) or other individual(s) principally in charge of the operation of the business, any authorized local agent(s), and the responsible managing officer designated pursuant to this article.
2. Auctioneer means any person who shall operate an auction house or who, as a principal or agent, shall offer any article for sale by public outcry and where such items offered at auction are sold immediately to the highest bidder.
3. Auction house means any establishment in which is carried on the business of auctioning articles for sale by public outcry and where such items offered for auction are sold immediately to the highest bidder.
4. Business records means records of any purchase, trade, barter or other transaction that involves the receipt of scrap metals and that is made in the ordinary course of business at or near the time of the purchase, trade, barter or transaction including receipts, books or similar records as prescribed by section 19-11.2 of this article, but do not include correspondence, tax returns or financial statements.
5. City Clerk means the City Clerk of the City Clerk Department of the City of Phoenix or his designee.
6. Ferrous metals means those metals that will attract a magnet.
7. Firearm means any loaded or unloaded pistol, revolver, rifle, shotgun or other weapon that will or is designed to or may readily be converted to expel a projectile by the action of an explosive, except that it does not include a firearm in permanently inoperable condition.
8. Industrial account means a person or business entity that files or is required to file monthly returns for that person's or entity's transaction privilege tax licenses or a governmental entity that sells scrap metal to a scrap metal dealer.
9. Nonferrous metals means those metals that will not normally attract a magnet, including copper, brass and aluminum.
10. Scrap metal dealer means a person or business entity, including all employees of the person or business entity, except automotive recyclers as defined and licensed pursuant to Title 28, Chapter 10, Arizona Revised Statutes, and whose primary business is the dismantling, selling or disposing of parts or accessories of motor vehicles, engaged in the business of purchasing, trading, bartering or otherwise receiving secondhand or cast-off material of any kind, except used beverage containers, which is commonly known as scrap metal.
11. Scrap metals includes insulated and uninsulated metallic cables.
12. Secondhand dealer/antique dealer means any person, other than a person who deals exclusively in secondhand books, magazines, handbills, and/or posters, engaged in conducting, managing, or carrying on the business of buying, selling, trading, or exchanging, or otherwise dealing in secondhand goods, wares, merchandise, or articles, whether such business be the principal or sole business so carried on, managed, or conducted or be merely incidental to, in connection with, or a branch or a department of some other business. This term shall not be construed to include trade-ins, dealers, or auctioneers in articles of property, the transfer of title to which is required by the laws of the State to be evidenced by written instrument and recorded in an appropriate office of State or County government.
13. Trade-in means the acceptance, sale, or disposal of used automobile tires or automobile batteries or farm implement parts or farm machinery parts or road equipment parts or mining equipment parts or automobile parts taken in part payment for new or reconditioned automobile tires or automobile batteries or farm implement parts or farm machinery parts or road equipment parts or mining equipment parts or automobile parts. Dealers exchanging articles in the course of service or construction work shall not be deemed to constitute the doing of any business defined under this term.
(Code 1962, § 24-1; Ord. No. G-1896, § 1; Ord. No. G-2524, § 1; Ord. No. G-2640, § 1; Ord. No. G-3073, § 1; Ord. No. G-3602, § 1; Ord. No. G-3683, § 40; Ord. No. G-3706, §§ 1, 2; Ord. No. G-3819, § 1; Ord. No. G-3875, §§ 1, 2; Ord. No. G-3896, § 1; Ord. No. G-4008, § 1, passed 5-7-1997, eff. 6-6-1997; Ord. No. G-4043, § 4, passed 10-1-1997, eff. 10-1-1997; Ord. No. G-4052, § 1, passed 10-22-1997, eff. 11-21-1997; Ord. No. G-4050, § 1, passed 11-5-1997, eff. 11-5-1997; Ord. No. G-4129, §§ 1, 2, passed 10-7-1998, eff. 11-6-1998; Ord. No. G-5188, § 1, adopted 6-18-2008, eff, 7-18-2008)
Cross references: Definitions and rules of construction generally, § 1-2.
Sec. 19-2. Compliance with departmental regulations.
All licensees who have been issued any of the licenses listed in section 19-5 shall conform to and comply with standards and regulations as may be required by administrative orders issued by such administrative departments of the City as have the responsibility of regulating licensees; provided, that such regulations shall be uniform in their application for every class of license.
(Code 1962, § 24-2)
Sec. 19-3. License required.
It shall be unlawful for any person to operate within the corporate limits of the City any of the mercantile businesses, as listed and defined in this article, without possessing a valid license as provided in this article. Applicants may elect to obtain either an antique dealer's license or a secondhand dealer's license. A person who deals exclusively in secondhand books, magazines, posters, and/or handbills is not required to obtain a license.
It shall further be unlawful for any person to operate a business which has been licensed under this article while the license for that business is suspended.
A separate license shall be required for each location.
License Type Application Fee License Fee Auctioneer $70.00 $30.00 annually Auction House $130.00 $30.00 annually Scrap metal dealer $170.00 $130.00 annually Secondhand dealer $130.00 $30.00 annually The City Clerk shall reduce the applicable application fee in the amount of sixty dollars for each license application for which a background check is not required.
(Code 1962, § 24-5; Ord. No. G-1896, § 2; Ord. No. G-2197, § 1; Ord. No. G-2448, § 1; Ord. No. G-2491, § 9; Ord. No. G-2524, § 1; Ord. No. G-2640, § 3; Ord. No. G-2758, § 5; Ord. No. G-3012, § 5; Ord. No. G-3131, § 5; Ord. No. G-3238, § 5; Ord. No. G-3336, § 8; Ord. No. G-3602, § 2; Ord. No. G-3706, § 3; Ord. No. G-3758, § 7; Ord. No. G-3896, § 4; Ord. No. G-4052, § 2, passed 10-22-1997, eff. 11-21-1997; Ord. No. G-4100, § 7, passed 6-10-1998, eff. 7-1-1998; Ord. No. G-4275, § 10, passed 6-14-2000, eff. 7-1-2000; Ord. No. G-4350, § 6, passed 5-16-2001, eff. 7-1-2001; Ord. No. G-4682, § 10, adopted 3-3-2005, eff. 7-1-2005; Ord. No. G-4909, § 1, adopted 5-30-2007, eff. 6-29-2007; Ord. No. G-5161, §§ 10, 11, adopted 5-28-2008, eff. 7-1-2008; Ord. No. G-5273, § 2, adopted 11-12-2008, eff. 12-12-2008; Ord. No. G-5331, § 1, adopted 4-1-2009, eff. 5-1-2009)
Editor's note: It should be noted that the rates in this section as amended by Ord. No. G-5331, are effective Oct. 1, 2009.
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Sec. 19-6. Applications– Forms; fees.
A. On a form provided by the City Clerk, an applicant for a license listed and defined in this article shall submit the following information to the City Clerk:
1. The full legal name, and all other names by which known.
2. Current residence address and telephone number.
3. The name(s) under which the prospective licensee will be doing business.
4. Valid proof of age.
5. Information as to whether the applicant has ever been refused any similar license or permit or has had any similar license or permit issued to such person in Phoenix or elsewhere revoked or suspended, and the reason therefor.
6. Information as to whether the applicant has ever entered into a consent agreement with the City Clerk pursuant to this article.
7. All prior criminal convictions, excluding those for traffic offenses.
8. Fingerprints.
9. If the applicant is a corporation, the name of the corporation shall be set forth exactly as shown in its articles of incorporation or charter, together with the state and date of incorporation, and the names, residence addresses, and dates of birth of each of its current officers and directors, and each stockholder holding more than five percent of the stock in the corporation. If the applicant is a partnership, the applicant shall set forth the names, residence addresses and dates of birth of each of the general partners. If one or more of the general partners in a partnership is a corporation, the provisions of this subsection pertaining to corporations shall apply. The corporation or partnership applicant shall designate one of its officers or general partners to act as its responsible managing officer. Such designated person shall complete and sign all application forms required of an applicant under this article.
B. The City Clerk shall have a reasonable period of time in which to investigate the application and background of the applicant and process the application through other City departments as necessary.
C. The City Clerk shall grant the license upon the following circumstances:
1. The required fees have been paid.
2. The application conforms in all respects to the provisions of this article.
3. The applicant has not made a material misrepresentation of fact in the application.
4. That neither the applicant, if an individual, nor any person financially interested if a business consisting of more than one individual, nor any of the general partners if a partnership, nor the manager or other individual principally in charge of the operation of the business, has been convicted of, pleaded nolo contendere to, or guilty to, any felony, or to a misdemeanor involving moral turpitude, within five years prior to the issuance of the license. This subsection shall be inapplicable to an individual whose civil rights have been restored in accordance with law, unless the conviction involves a criminal violation of this article.
5. The applicant has not violated any of the provisions of this article within the five-year period immediately preceding the date of the filing of the application.
6. The applicant has not had a license similar to the one issued pursuant to the provisions of this article issued by another authority, suspended or revoked within the five-year period immediately preceding the date of the filing of the application.
7. The applicant has not violated a consent agreement entered into with the City Clerk pursuant to this article within the previous two years.
8. The applicant is in compliance with all laws of the City, County and State.
9. The applicant is at least eighteen years of age.
D. The City Clerk shall deny the application if any of the requirements of subsection C of this section have not been met. In the event of denial, the applicant completing the application shall be notified by mail of the denial and the reasons therefor. The applicant may appeal such denial to the License Appeal Board pursuant to the provisions of chapter 19 of the Phoenix City Code, provided that a denial based in whole or in part upon paragraph (C)(7) of this section shall be appealable only by way of special action in the Superior Court.
(Code 1962, § 24-6; Ord. No. G-2197, § 12; Ord. No. G-3896, § 5)
Sec. 19-6.01. Applications; additional requirements.
A. No license shall be issued to an individual if the individual does not present any of the following documents to the City Clerk indicating that the individual's presence in the United States is authorized under Federal Law:
1. An Arizona driver license issued after 1996 or an Arizona nonoperating identification license.
2. A driver license issued by a state that verifies lawful presence in the United States.
3. A birth certificate or delayed birth certificate issued in any state, territory or possession of the United States.
4. A United States certificate of birth abroad.
5. A United States passport.
6. A foreign passport with a United States Visa.
7. An I-94 Form with a photograph.
8. A United States citizenship and immigration services employment authorization document or refugee travel document.
9. A United States certificate of naturalization.
10. A United States certificate of citizenship.
11. A tribal certificate of Indian blood
12. A tribal or Bureau of Indian Affairs Affidavit of Birth.
B. This section does not apply to an individual, if all of the following apply:
1. The individual is a citizen of a foreign country or, if at the time of application, the individual resides in a foreign country.
2. The benefits that are related to the license do not require the individual to be present in the United States in order to receive those benefits.
(Ord. No. G-5224, § 16, adopted 9-3-2008, eff. 9-3-2008)
Sec. 19-7. Applications– Statement of applicant's availability at premises.
The application for a license under this article shall have on it provisions for a statement by the applicant of at least three different times during the business day, within a seven-day period, when he will be available at the premises to be inspected and to meet with the proper City officials making the inspection. Failure of the applicant to be at the premises at the times stated in his application shall be grounds, if the City Clerk in her discretion finds that such absences were without sufficient excuse, for cancellation of the application and forfeiture of the application fee.
(Code 1962, § 24-7; Ord. No. G-3683, § 40)
Sec. 19-8. Applications– Processing and approval by departments.
Every application filed pursuant to this article shall be reviewed and approved by the Police Department and Neighborhood Services Department of the City of Phoenix.
(Code 1962, § 24-8; Ord. No. G-3896, § 6)
Sec. 19-8.01. Applications– Criminal history record information review.
The licensing authority as designated in this chapter or as otherwise designated in the Phoenix City Code may review the criminal history record information, including conviction and non-conviction data, of license applicants for the purpose of evaluating the fitness of prospective licensees. Such information shall be used only for the purpose of such evaluation.
(Ord. No. G-1753, § 2)
Sec. 19-8.02. Change of location.
A. A license may be transferred from one location within the City of Phoenix to another location within the City of Phoenix.
B. On a form provided by the City Clerk, the licensee shall submit such information as the City Clerk shall require in order to process a request for change of location.
C. The City Clerk shall process the change of location application through such departments as necessary to ensure compliance with all laws of the City, County, and State.
D. A nonrefundable fee of ninety-five dollars shall be submitted with each application for a change of location.
(Ord. No. G-3896, § 7)
Sec. 19-9. Revocation of license.
Any license issued under the provisions of this article may be revoked by the City Clerk in the event of refusal on the part of a licensee to comply with the provisions of this article. No license revoked shall be reissued until a full license fee has been paid.
(Code 1962, § 24-9; Ord. No. G-3683, § 42)
Sec. 19-10. Suspension of license.
Any license issued under the provisions of this article may be suspended by the City Clerk for a prescribed period of time, not to exceed fourteen days, in the event of a failure on the part of a licensee to comply with the provisions of this article. No license suspended shall be reinstated until an application fee has been paid.
(Code 1962, § 24-10; Ord. No. G-3683; § 43; Ord. No. G-3706, § 4)
Sec. 19-10.1. Consent agreements.
A. The City Clerk may, either before or after the issuance of a notice of suspension or revocation, provide for informal disposition of the matter by consent agreement.
B. The license of any person violating any of the terms of a consent agreement reached pursuant to this section shall be revoked for a period of one year.
(Ord. No. G-3706, § 5)
Sec. 19-10.2. Civil sanctions.
A. The remedies provided for in this section are cumulative with those provided for in section 19-10, Phoenix City Code.
B. Any licensee who violates any provision of this article is subject to a civil sanction of not less than twenty-five dollars per violation nor more than two hundred fifty dollars per violation.
(Ord. No. G-3706, § 6)
Sec. 19-10.3. Jurisdiction of court.
A. Jurisdiction of all proceedings to enforce the provisions of section 19-10.2 of this article shall be in the Municipal Court of the City of Phoenix.
B. Civil actions to enforce section 19-10.2 of this article may be adjudicated by a judge or a court hearing officer.
(Ord. No. G-3706, § 7)
Sec. 19-10.4. Commencement of a civil action.
Any civil action to enforce a civil sanction imposed pursuant to this article shall be commenced and summons shall be issued in accordance with the procedures set forth in the Arizona Revised Statutes.
(Ord. No. G-3706, § 8)
Sec. 19-10.5. Admission or denial of allegation in a civil complaint; hearing; findings of court; civil sanction.
A. A person served with a civil complaint shall appear at the time and place stated in the summons, or may appear prior to that time, and upon the directions contained in the summons, and admit or deny the allegations of the complaint. Allegations not denied at the time of appearance are deemed admitted.
B. If the allegations are admitted, the court shall enter judgment for the City and impose a civil sanction.
C. If the person denies the allegations of the complaint, the court shall set the matter for hearing. Civil hearings are informal and held without a jury, and the City is required to prove the violation charged by a preponderance of the evidence. Technical rules of evidence do not apply, except for statutory provisions relating to privileged communications. If the person elects to be represented by counsel, the person shall so notify the court at least ten days prior to the hearing date. Hearings may be recorded. If the court finds in favor of the person, the court shall enter an order dismissing the complaint. If the court finds in favor of the City, the court shall enter judgment for the City and impose a civil sanction.
D. If the person served with a civil complaint fails to appear on or before the time directed to appear or at the time set for hearing by the court, the allegations in the complaint shall be deemed admitted and the court shall enter judgment for the City and impose a civil sanction.
(Ord. No. G-3706, § 9)
Sec. 19-10.6. Appeal of court decision.
Any party may appeal the judgment of the court to the Superior Court. Appeals from civil proceedings shall be in accordance with the Superior Court Rules of Appellate Procedure– Civil.
(Ord. No. G-3706, § 10)
Sec. 19-11. Special requirements– Auction houses and secondhand dealers.
A. Every person, except nonprofit organizations, engaged in the business of auction house or secondhand dealer shall make out at the time of the transaction a true, complete, and legible report of all goods or articles, received on deposit or consignment, trade or exchange, or by purchase, which bear a serial number or have a fair market value in excess of $100.00. The report shall be made upon forms furnished by the Police Department, and shall be delivered to the Police Department within twenty-four hours after receipt of the property concerned. Delivery of the report to the Police Department is accomplished when the report is delivered in person or when the report is deposited in the United States mail. The reporting party shall retain on the premises of the business for six months from the date of the transaction his copy of the report. Each report shall contain for each item received:
(1) An accurate description of the property, including brand name and serial number, if any. The word "scrap" shall not constitute a description under this subsection.
(2) The amount paid for the property, or amount allowed in trade.
(3) The date and time when the property was received.
(4) A statement in ten-point bold type, signed by the person from whom the property was received, which reads as follows:
All information in this report is complete and accurate. I am the owner of goods described in this report that I pledged, sold, or consigned or I am authorized to enter into this pawn, sale, or consignment transaction on behalf of the owner of the goods described in this report. I understand that I will be guilty of a Class 1 misdemeanor if the information in this report is not complete and accurate or I am not the owner of the goods pledged, sold, or consigned or I am not authorized to enter into the pawn, sale or consignment transaction on behalf of the owner of such goods.
(5) The name (printed), address and age of such person. Before accepting the property, the reporting party shall require the person who is delivering the property to identify himself with a valid motor vehicle operator's license, valid motor vehicle nonoperating identification license, valid armed forces identification card or other valid photo identification sufficient to verify the information required by the subsection.
(6) The serial number of the identification card provided pursuant to paragraph (5), above.
(7) A description of such person, consisting of height, weight, race, complexion and hair color.
B. An auction house or secondhand dealer shall retain any property obtained in a reportable transaction at its place of business, or other storage location approved by the Police Department, for a period of ten calendar days after making out and delivering to the Police Department the report required under subsection A above. Any article held in custody pursuant to this subsection shall not be altered or transformed in any way but shall be held in the same condition in which it was delivered to the reporting party.
C. Subsections A and B of this section shall not apply to transactions falling within any one or more of the following categories:
1. Purchases by a secondhand dealer or auction house from a business with a fixed business location of either business inventory or business equipment, provided that the licensee acquires at, or has previously acquired by, the time of the transaction, all of the following:
i. The name and address of the business.
ii. The State and local privilege (sales) tax license number of the business, if applicable.
iii. A copy of the invoice or other document showing the business' bona fide purchase of or right to possess the article sold, or a representative of the business with apparent authority to act in behalf of the business for purposes of this subsection has completed and signed the report required in subsection A of this section in all its particulars, notwithstanding the amount of the transaction.
2. Purchases of household items by a secondhand dealer or auction house from a place of residence, provided that all of the following apply:
i. The purchase is made by the licensee by check or other negotiable instrument made payable to the seller, or the purchase is made in cash and the licensee has obtained a receipt for that cash payment from the seller bearing the seller's name and address, verified to be accurate by the licensee from identification of the type listed in subsection (A)(5) of this section.
ii. The seller has produced for the licensee's inspection documentary evidence which would establish to the satisfaction of a reasonable person that the seller is either the lawful occupant of the premises or has the legal right to sell the items being offered for sale. The licensee shall record from the documentary evidence produced a description of the document, including the name or nature of the document, and, to the extent available, its date, the individual's name and address thereon, and any account number appearing thereon.
iii. Notwithstanding the twenty-five dollar rule of subsection A, the licensee records the serial numbers and descriptions of all items bearing serial numbers.
3. Consignments, other than a firearm consigned to an auction house or secondhand dealer, provided that no payment is made by the licensee to the consignor for a period of three calendar days after the date of the consignment.
4. Any firearm consigned to a licensee by a pawnbroker, secondhand dealer, or auction house licensed by the State of Arizona or any City within the State of Arizona.
5. Articles of used clothing received in trade, exchange, by purchase, or on consignment.
6. Articles of furniture received in trade, exchange, by purchase, or on consignment, excluding electronic appliances and equipment.
7. Goods or articles received in trade, exchange, or by purchase from a business engaged in the lawful liquidation of its business.
8. Goods or articles received in trade, exchange, by purchase, or on consignment from a secondhand dealer or auction house possessing a valid license issued pursuant to this article, or a pawnbroker possessing a valid license issued pursuant to A.R.S. § 44-1627.
All documentation obtained pursuant to this subsection shall be retained on the business premises for a period of twenty-four months and shall be made available for reasonable inspection by any peace officer of this State when the business premises are lawfully occupied and during regular business hours.
D. Every person engaged in the business of secondhand dealer shall record the description of every article sold for an amount of one hundred dollars or more. He shall also record the name and address of the purchaser of such articles. This record shall be held by the secondhand dealer for at least thirty days after the sale.
This subsection shall not apply to any of the purchases, consignments, trades, or exchanges listed in subsection C of this section.
E. Each auction house and secondhand dealer shall maintain a copy of this Code section on the premises at all times and shall make it available upon request to any employee or customer of that auction house or secondhand dealer and to local law enforcement.
F. Every person engaged in the business of auction house or secondhand dealer who, in the conduct of his business, comes into possession of abandoned property, shall turn over such property to the Police Department. If ownership of such property is not established within ninety days after delivery to the Police Department, the property shall be returned to the person from whom the Police Department obtained possession.
G. The business premises of any auction house or secondhand dealer, along with their transaction records and stock of goods and articles, shall be open to reasonable inspection by any peace officer of this State when the business premises are lawfully occupied and during regular business hours.
H. Any person violating any of the provisions of this section shall be strictly liable. No culpable mental state is required.
I. Notwithstanding any other provisions of this section, the license of any auction house or secondhand dealer may be suspended for a period not to exceed one year upon a showing that the operator or any employee of such establishment has been convicted of violating any of the provisions of chapter 19 of the Phoenix City Code, or A.R.S. §§ 13-1802 and 13-2307, in the conduct of business of such establishment. The conviction of an employee under A.R.S. § 13-1802 for an act of theft committed against that employee's own auction house or secondhand dealer shall not be the basis for suspension under this subsection.
J. No person engaged in the business of auction house or secondhand dealer shall knowingly permit a person whose license is under suspension under subsection (H) above to be employed in any capacity of such establishment.
K. The reporting requirements of section 19-11(A) on goods and articles received on deposit or consignment, trade or exchange, or by purchase, shall not apply to organizations qualified under section 501(c), Internal Revenue Code of 1986.
L. An auction house or secondhand dealer shall pay to the City of Phoenix a fee in the amount of three dollars for each report required to be prepared pursuant to paragraph A of this section. The fee shall be due on the last business day of the month following the month in which the reports are required to be completed pursuant to this section. The fees payable and paid shall be recorded on a form prescribed by the City and shall be considered as filed only when the accuracy of the return has been attested to, by signature upon the form, by the auction house or secondhand dealer, or its authorized agent, and has been received by the City.
(Code 1962, §§ 24-11, 24-12, 24-13, 24-14, 24-15; Ord. No. G-914, § 1; Ord. No. G-1358, § 1; Ord. No. G-1896, § 3; Ord. No. G-2252, §§ 1, 2; Ord. No. G-2494, §§ 1, 2; Ord. No. G-3012, § 7; Ord. No. G-3073, §§ 3, 4; Ord. No. G-3131, § 7; Ord. No. G-3238, § 7; Ord. No. G-3336, § 9; Ord. No. G-3580, § 1; Ord. No. G-3602, § 2; Ord. No. G-3706, § 11; Ord. No. G-3819, § 2; Ord. No. G-3896, § 8; Ord. No. G-4052, § 3, passed 10-22-1997, eff. 11-21-1997; Ord. No. G-4131, §§ 2, 3, passed 11-4-1998, eff. 12-4-1998)
State law references: Jewelry auctions, A.R.S. § 44-1671 et seq.
Sec. 19-11.1. Reserved.
Editor's note: Section 19-11.1 was repealed; see Ord. No. G-4052, § 4, passed 10-22-1997, eff. 11-21-1997.
Sec. 19-11.2. Special requirements– Scrap metal dealers.
A. Every scrap metal dealer shall keep on the business premises a book or other similar record legibly printed or written in ink in the English language of each transaction exceeding twenty-five dollars involving the receipt of scrap metal except used aluminum beverage containers and materials consisting of a metal product in its original manufactured form that is comprised of no more than twenty percent by weight nonferrous metal. the record of each receipt of scrap metal shall include the following information:
1. A photograph and an identifying description and weight of the specific scrap metal received.
2. The date, time, and place of the transaction.
3. The seller's name, physical address, physical description including gender, height, weight, race, eye and hair color, date of birth, signature and a photocopy of a current driver license, nonoperating identification card issued pursuant to Section 28-3165, Arizona Revised Statutes, or a photo identification card issued by a Tribal Government or the United States Military. The scrap metal dealer must validate the recorded information by using the seller's current driver license, nonoperating identification license issued pursuant to Section 28-3165, Arizona Revised Statutes, or photo identification card issued by a Tribal Government or the United States Military.
4. The dollar amount of the transaction.
5. The number and state of issuance of the license on the vehicle used to deliver the scrap metal.
6. The seller's state transaction privilege tax number, if applicable.
7. A photograph, video record or digital record of the seller involved in the transaction.
8. A right index fingerprint of the seller.
B. The record and entries required by Subsection A of this section shall be retained in a book or similar record at the business premises for one year after making the final entry of any transaction and shall be retained either at the business premises or any other reasonably available location for an additional year.
C. A scrap metal dealer shall not purchase materials for which a record is required to be kept by Subsection A of this section in a series of purchases under twenty-five dollars in order to avoid the requirements of this section.
D. Within twenty-four hours of receipt of scrap metals, except from an industrial account or a scrap metal dealer, for which a record is required to be kept by subsection A of this section, a scrap metal dealer shall either deliver to the Department of Public Safety the reporting required by Section 44-1644, Arizona Revised Statutes, in the electronic format necessary to permit the Department of Public Safety to upload the information without separate data entry or deliver to the local law enforcement agency a record of the receipt of the scrap metals. The record shall include the following information:
1. The date, time and place of the receipt of the scrap metal.
2. An identifying description of the specific scrap metal received including the weight and amount of the transaction or other consideration given.
3. A description of the person delivering the metal to the scrap metal dealer including the person's gender, height, weight, race and hair and eye color, address and date of birth and a photocopy of a current driver license, nonoperating identification license issued pursuant to Section 28-3165, Arizona Revised Statutes, or photo identification card issued by a Tribal Government or the United States Military.
4. The number and state of issuance of the license on the vehicle used to deliver the scrap metal.
E. For copper, aluminum wire with a diameter of at least three-eighths of an inch and transactions with a value over one hundred dollars, a scrap metal dealer shall hold in its custody in the same size, shape and condition in which the scrap metal was received on its business premises any scrap metal received in a reportable transaction for seven days after filing the report prescribed by Subsection D of this section. This subsection does not apply to transactions with industrial accounts, other scrap metal dealers or purchases by scrap metal dealers of used aluminum beverage containers or ferrous scrap metals and of scrap metal authorized for release by a peace officer of that jurisdiction. A scrap metal dealer shall not purchase materials that are subject to the hold rule of this subsection in a series of transactions with a value of one hundred dollars or less in order to avoid the requirements of this subsection.
F. A scrap metal dealer shall not provide payment for any scrap metal on site at the time of the scrap metal transaction. Payment shall be made by mailing a check or money order to a physical address provided by the seller through a current driver license or other identification prescribed in Paragraph 3 of Subsection A of this section. The check or money order shall be made payable to the business name for an industrial account. This subsection:
1. Except as provided in Paragraphs 2 and 3 of this subsection, only applies to industrial accounts, copper and aluminum wire with a diameter of at least three-eighths of an inch.
2. Except as provided in Paragraph 3 of this subsection, applies to all scrap metal transactions of three hundred dollars or more.
3. Does not apply to industrial accounts if the industrial accounts annually preregister employees who are authorized sellers on behalf of the industrial accounts.
G. Subsection F does not apply to transactions involving used aluminum beverage containers or materials consisting of a metal product in its original manufactured form that is comprised of no more than twenty percent by weight nonferrous metal.
H. A scrap metal dealer shall provide a receipt to the seller on site at the time of the scrap metal transaction for every transaction, except those involving used aluminum beverage containers or materials consisting of a metal product in its original manufactured form that is comprised of no more than twenty percent by weight nonferrous metal, and shall include the following information:
1. The date, time and place of the transaction.
2. An identifying description and weight of the specific scrap metal received.
3. The dollar amount of the transaction.
I. A scrap metal seller shall not participate in more than one cash transaction per day for scrap metal, excluding used aluminum beverage containers and materials consisting of a metal product in its original manufactured form that is comprised of no more than twenty percent by weight nonferrous metal.
J. A scrap metal seller shall be at least sixteen years old, excluding transactions for used aluminum beverage containers and materials consisting of a metal product in its original manufactured form that is comprised of no more than twenty percent by weight nonferrous metal.
K. A scrap metal dealer shall not purchase or otherwise receive metallic wire that was burned in whole or in part to remove insulation unless the scrap metal dealer receives from the scrap metal seller written evidence identifying the person who delivers the wire to the scrap metal dealer that includes evidence that the wire was lawfully burned.
L. A scrap metal dealer shall not accept aluminum wire with a diameter of at least three-eighths of an inch or any copper wire that has had the insulation removed and shall not remove the insulation from the wire until after the seven day period prescribed by this section.
M. Subsections K and L of this section do not apply to transactions with industrial accounts or to transactions between scrap metal dealers.
N. No culpable mental state need be shown in order to take civil enforcement action against a scrap metal dealer licensee as provided in City Code Sections 19-10 and 19-10.2, provided that any civil enforcement action taken as a result of the destruction of any record required to be kept pursuant to this section shall require a showing that the action was taken knowingly.
O. A scrap metal dealer shall maintain a copy of this Code section on the premises at all times and shall make it available upon request to any employee or customer of that scrap metal dealer and to local law enforcement.
P. A scrap metal dealer who, in the conduct of his business, comes into possession of abandoned property, shall turn over such property to the Police Department. If ownership of such property is not established within ninety days after delivery to the Police Department, the property shall be returned to the person from whom the Police Department obtained possession.
Q. A scrap metal dealer's business premises, business records relating to scrap metal transactions, including a book or similar record prescribed by this section, and business inventory shall be open during regular business hours for reasonable inspection by a peace officer. Before an inspection shall take place a peace officer shall first identify himself and the purpose for the inspection to the scrap metal dealer, dealer's manager or other responsible person and comply with all reasonable and customary safety requirements of that scrap metal dealer for the business premises inspected. The scrap metal dealer may require the peace officer to sign an inspection log that includes the officer's name and serial or badge number and the time, the date and the purpose for the inspection.
R. A scrap metal dealer who fails in any respect to keep a book or similar record prescribed by this section or to set out in a book or similar record any matter this section requires or who refuses, upon demand of any peace officer of this State, to exhibit a book or similar record, business record, receipt or transaction record, or who knowingly destroys a book or similar record within two years after making the final entry of any transaction or who otherwise fails to comply with this article, is guilty of a Class 1 misdemeanor.
S. Notwithstanding any other provisions of this section, the license of any scrap metal dealer may be suspended for a period of not to exceed one year upon a showing that the operator or any employee of such establishment has been convicted of violating any of the provisions of of the Phoenix City Code, or any of the provisions of A.R.S. §§ 13-1802, 13-2307, 28-2094, 28-2531, 44-1642, 44-1643, 44-1644, or 44-1646 in the conduct of business of such establishment. The conviction of an employee under A.R.S. § 13-1802 for an act of theft committed against that employee's own scrap metal dealer shall not be the basis for suspension under this subsection.
T. No person engaged in the business of scrap metal dealer shall knowingly permit a person whose scrap metal dealer license is under suspension to be employed in any capacity of such establishment.
U. The reporting requirements of Subsection A of this section for any article received by a scrap metal dealer in trade, exchange, or by purchase, shall not apply to organizations qualified under section 501(c), Internal Revenue Code of 1986.
(Ord. No. G-3706, § 12; Ord. No. G-3875, § 3; Ord. No. G-4129, § 3, passed 10-7-1998, eff. 11-6-1998; Ord. No. G-5188, § 2, adopted 6-18-2008, eff, 7-18-2008)
Sec. 19-11.3. Police officer hold on property.
A. Whenever any peace officer has probable cause to believe that property in the possession of a pawnbroker, secondhand dealer, scrap metal dealer, or auction house is stolen, the peace officer may place a hold on the property for a period not to exceed ninety days. The hold shall be effective immediately upon oral or written notice. If the hold is placed orally, it shall be followed by a written notice mailed to the pawnbroker, secondhand dealer, scrap metal dealer, or auction house within two days, excluding weekends and City holidays. The written notice of hold shall accurately describe the property, providing the item's brand name and serial number, if applicable. During the hold period the pawnbroker, secondhand dealer, scrap metal dealer or auction house shall not release or dispose of the property, except pursuant to a court order or upon receipt of a written authorization signed by any peace officer who is a member of the law enforcement agency of which the peace officer placing the hold on the property is a member. At the time of receipt of the written hold, the pawnbroker, secondhand dealer, scrap metal dealer, or auction house shall tag and mark the item placed on hold with the following information: date and time of hold, name of law enforcement agency placing the hold, and law enforcement report number. A pawnbroker, secondhand dealer, scrap metal dealer, or auction house shall not be subject to civil liability for compliance with this section.
B. Whenever property that is in the possession of a pawnbroker, secondhand dealer, scrap metal dealer, or auction house is subject to a hold and the property is required by a peace officer in a criminal investigation, the pawnbroker, secondhand dealer, scrap metal dealer, or auction house, upon reasonable notice, shall produce the property at reasonable times and places or may deliver the property to any peace officer upon the request of any peace officer who is a member of the law enforcement agency or which the peace officer placing the hold on the property is a member.
C. Whenever property that is in the possession of a pawnbroker, secondhand dealer, scrap metal dealer, or auction house is subject to a hold and the property is no longer required for the purpose of criminal investigation, the law enforcement agency that placed the hold on the property shall undertake the following:
(1) With respect to the property being held, if the law enforcement agency no longer has probable cause to believe that the property on hold is stolen, the hold shall be released.
(2) If the law enforcement agency has knowledge that property has been reported stolen, the law enforcement agency may either utilize the provisions of article III of this chapter, if otherwise applicable, or give written notification to the person who reported the stolen property of the name and address of the pawnbroker, secondhand dealer, scrap metal dealer, or auction house holding the property, authorize the release of the property to that person, and advise the person that the law neither requires nor prohibits payment of a fee or any other condition in return for the surrender of the property. A copy of the notice with the address of the claimant deleted shall be mailed to the pawnbroker, secondhand dealer, scrap metal dealer, or auction house who is in possession of the property. The person who reported the stolen property shall present a police hold release to the pawnbroker, secondhand dealer, scrap metal dealer, or auction house prior to the person receiving the item. Notwithstanding the foregoing, if the alleged owner does not choose to participate in the prosecution of an identified alleged thief, the alleged owner shall pay the pawnbroker, secondhand dealer, scrap metal dealer, or auction house the "out of pocket" expenses paid in the acquisition of the allegedly stolen property in return for the surrender of the property. If no action is taken to recover the property by the person who reported the property stolen within sixty days after the date that the notice was mailed, or if the property was not placed on hold, sixty days after a law enforcement officer advised the pawnbroker, secondhand dealer, scrap metal dealer, or auction house that the property may be stolen property, the pawnbroker, secondhand dealer, scrap metal dealer, or auction house in possession of the property may treat the property as regularly acquired in the due course of business.
(3) If a pledger seeks to redeem property that is subject to a hold, the pawnbroker, secondhand dealer, scrap metal dealer, or auction house shall advise the pledger of the name and badge number of the peace officer who placed the hold on the property and the name of the law enforcement agency of which the officer is a member. If the property is not required to be held pursuant to a criminal prosecution, the hold shall be released.
D. Whenever any property is taken from a pawnbroker, secondhand dealer, scrap metal dealer, or auction house by a peace officer which is alleged to be stolen property, the police officer shall give the pawnbroker, secondhand dealer, scrap metal dealer, or auction house a receipt for the property which shall contain an accurate description of the property, including brand name and serial number, if any, the reason for seizure, and the names of the pawnbroker, secondhand dealer, scrap metal dealer, or auction house, and the officer.
(Ord. No. G-3706, § 13; Ord. No. G-3857, § 1)
Cross references: Disposition of allegedly stolen property, § 19-20 et seq.
Sec. 19-11.4. Business succession and liability.
The provisions of the City of Phoenix Finance Code, article IV, chapter 14, relating to business succession and liability, shall be applicable to all application fees, licenses, and license fees imposed under this chapter.
(Ord. No. G-2075, § 5; Ord. No. G-3819, § 3)
ARTICLE II.
LICENSE APPEAL BOARD*------------
Cross references: Administration, ch. 2; amusements, ch. 7; businesses, ch. 10; street and sidewalk vending, § 31-22 et seq.
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Sec. 19-12. Creation; membership; terms; duties.
(a) A License Appeal Board is hereby created. The Board shall consist of seven members to be appointed by the City Council for terms of four years. The terms of members sitting on the Board on the effective date of this ordinance shall be as specified in Ordinance No. S-17465. Any vacancy shall be filled by the City Council for the unexpired term.
(b) The Board shall select its own chairman, adopt its own procedural rules and shall keep a record of its proceedings and transactions.
(c) The majority of the members of the Board shall constitute a quorum, and the Board shall hear, review and decide all appeals properly brought before it under the provisions of this article.
(d) The decisions of the Board shall be based upon the requirements and regulations as stated in Article I of this Chapter, Articles I, II and III of Chapter 7; Articles I, III, IV, V, VI and VII of Chapter 10; Division 2, Article III of Chapter 2, and Article II of Chapter 31 of this Code.
(Code 1962, § 24-84; Ord. No. G-879, § 1; Ord. No. G-1174, § 1; Ord. No. G-1455, § 1; Ord. No. G-1601, § 1; Ord. No. G-3068, § 1; Ord. No. G-4571, § 2, passed 1-21-2004, eff. 1-21-2004)
Sec. 19-13. Appeals procedure.
(a) When the designated or authorized City official, as listed in Article I of this Chapter; Articles I, II and III of Chapter 7; Articles I, III, IV, V, VI and VII of Chapter 10; Division 2, Article III of Chapter 2; and Article II of Chapter 31 of this Code, shall issue an order of denial, nonrenewal, suspension or revocation by sending notice thereof to the applicant or licensee by registered mail or by hand delivery, the applicant or licensee may appeal said notice of denial, nonrenewal, revocation or suspension to the License Appeal Board within ten days of receipt of said notice.
(b) The notice of appeal shall be in writing and shall be addressed to the License Appeal Board, in care of the City Clerk, Phoenix City Hall, 200 W. Washington, 15th Floor, Phoenix, Arizona 85003.
(c) Time for appeal shall be computed under the Federal Rules of Civil Procedure, Rule 6(a). The tenth day shall end at 5:00 p.m. MST. Any letters or requests for appeal submitted after said time or not in conformity with these provisions shall not be heard.
(Code 1962, § 24-85; Ord. No. G-1601, § 1; Ord. No. G-3667, § 5; Ord. No. G-3683, § 44; Ord. No. G-3836, § 1; Ord. No. G-4292, § 1, passed 8-30-2000, eff. 8-30-2000; Ord. No. G-4571, § 3, passed 1-21-2004, eff. 1-21-2004)
Sec. 19-14. Hearing by Board.
A. The hearing process shall be conducted informally and the technical rules of evidence shall not apply, provided that the decision of the Board shall in all cases be based upon substantial and reliable evidence. All parties shall have the right to be represented by counsel and to present evidence and testimony in support of their position.
B. The Board in its sound discretion may uphold the notice of revocation or reduce said notice of revocation to a suspension of license not exceeding sixty days. The Board may also reduce a notice of suspension in the number of days said license is to be suspended.
C. The decision of the Board shall be final.
D. When the decision to suspend a license or revoke a license becomes final, the licensee against whom this action has been taken shall have the right to seek judicial review of the decision by way of special action or other available remedy in the Superior Court.
(Code 1962, § 24-86; Ord. No. G-3667, § 6; Ord. No. G-3706, § 14)
Sec. 19-15. Notice of denial, nonrenewal, revocation or suspension– When final.
The notice of denial, nonrenewal, revocation or suspension by the designated City official, once served upon the applicant or licensee, shall become final only after:
(a) The ten days expire within which to appeal said notice; or
(b) A decision of the Board following the hearing, upholding the designated City official's notice of denial, nonrenewal, suspension or revocation is issued.
(Code 1962, § 24-87; Ord. No. G-3667, § 7)
Sec. 19-16. Penalty.
Any person violating the rule of the Board under the terms of this article shall be guilty of a misdemeanor.
(Code 1962, § 24-89; Ord. No. G-1868, § 3)
Secs. 19-17– 19-19. Reserved.
ARTICLE III.
DISPOSITION OF ALLEGEDLY STOLEN PROPERTY*------------
Cross references: Police Department, § 2-119 et seq.; disposition of unclaimed money and personal property, § 2-301 et seq.; police hold on property, § 19-11.3.
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Sec. 19-20. Scope.
A. Property which is in the possession of the Police Department and which has all of the characteristics set forth in section 19-21 of this Code shall be disposed of pursuant to this article.
B. Property which is in the possession of a business regulated by chapter 19 of this article and which has characteristics B through E of section 19-21 of this Code may be disposed of pursuant to this article.
(Ord. No. G-3813, § 1)
Sec. 19-21. Property included.
A. The property has come into the possession of the Police Department by means of seizure by the Department or some other law enforcement agency.
B. The City has reason to believe that the property has been stolen.
C. No Arizona court has before it a petition against a suspect alleged to have stolen the property.
D. Two or more persons are known or believed to have made, or can reasonably be anticipated to make, a claim for possession of the property.
E. The City of Phoenix makes no claim to possession of the property.
F. The property will not be required to be retained for use as evidence in any legal proceeding other than the hearing under this article.
(Ord. No. G-3813, § 1)
Sec. 19-22. Initiation of petition.
The Police Department shall file a petition with the hearing officer which shall set forth the following:
A. The facts establishing compliance with the basis for the action under section 19-21.
B. The name and address of each person described in section 19-21(D) above.
C. An accurate description of the property, any identifying marks or serial numbers, the police identification number(s), the location where seized, and the person from whom seized.
(Ord. No. G-3813, § 1)
Sec. 19-23. Service of the petition; notice of hearing.
A. The petition shall be served by first class mail, postage prepaid, return receipt requested, upon all persons known to have an interest in the property, each person described and named in section 19-21(D) and section 19-22(B) above and, in all cases, from the person from whom the property was obtained if a seizure has been made.
B. A copy of this article shall be served with each petition.
C. There shall be served with the petition and copy of this article a notice of hearing setting forth the date, time and place for the conduct of the hearing to determine the right of possession of the property, which hearing date shall not be sooner than twenty-five nor more than sixty calendar days after the date of service of the petition and notice.
D. Service shall be made to the last known address of all persons included in subsection A of this section.
E. Service shall be complete upon receipt.
F. Proof of service upon each potential claimant shall be delivered to the hearing officer.
(Ord. No. G-3813, § 1)
Sec. 19-24. Claimant's rights.
A. Any person claiming an interest in the property shall be known as a respondent.
B. A respondent or any other person claiming any ownership interest of any kind, or possessory right to the property, shall have the right to appear at the hearing and to present any and all evidence in support of such person's claim to the property.
C. Except as provided in section 19-25(B) of this article, the failure of any person to appear at such hearing shall constitute a waiver of any claim to the property by such person as against the City of Phoenix, and shall authorize the hearing officer to enter a ruling consistent therewith.
(Ord. No. G-3813, § 1)
Sec. 19-25. Conduct of hearing.
A. The hearing shall be conducted informally and the technical rules of evidence shall not apply, provided that the decision of the hearing officer shall in all cases be based upon substantial and reliable evidence. All parties shall have the right to be represented by counsel, to present evidence and testimony in support of their position, and to cross examine adverse witnesses. All witnesses shall be placed under oath before testifying.
B. The burden of proof shall be at all times upon the person or persons challenging the possession of the regulated business, or the party from whom the property was taken by the Police Department, even if the regulated business or the party from whom the property was taken does not appear at the hearing.
C. The hearing shall be recorded electronically or by other means.
D. The decision of the hearing officer shall be issued within ten calendar days of the close of the record. The decision shall be in writing, and shall be mailed postage prepaid to each respondent or claimant appealing.
E. The decision of the hearing officer shall be final upon issuance.
(Ord. No. G-3813, § 1)
Sec. 19-26. Hearing continuance.
The hearing officer may grant no more than two continuances, on good cause shown, with not less than three calendar days' notice to the City and all claimants.
(Ord. No. G-3813, § 1)
Sec. 19-27. Judicial review.
Any respondent or other party participating in the hearing who is aggrieved by the decision of the hearing officer may seek judicial review by a special action proceeding in Superior Court.
(Ord. No. G-3813, § 1)
Sec. 19-28. Hearing officer.
All petitions filed pursuant to this article shall be assigned to and considered by a hearing officer designated by the City Manager. Such hearing officer or designee shall in no event be an employee of the Police Department.
(Ord. No. G-3813, § 1)
Sec. 19-29. Release of seized property.
A. Any person prevailing in a hearing or uncontested proceeding convened pursuant to section 19-21(A) of this article shall be entitled to receive the property described in the petition after producing a copy of the decision in their favor and appropriate identification to the property's custodian.
B. No property may be released pursuant to this section until the expiration of twenty calendar days from the date of the hearing officer's decision.