Memorandum
City of Lawrence
City Attorney's Office
TO: David Corliss, City Manager
FROM: Maria Kaminska, Assistant City Attorney
CC: Toni Wheeler, City Attorney; Tarik Khatib, Police Chief
DATE: December 30, 2013
RE: Pawnbrokers and precious metal dealers
_____________________________________________________________
Staff recommends adopting Ordinance 8925, which provides three major amendments to Chapter 6, Article 5 (Pawnbrokers). The first defines precious metal dealers, and mirrors language from state statute K.S.A. 16-706. This term has been added since the proposed language would directly affect precious metal dealers in addition to pawnbrokers in Lawrence. The second amendment requires pawnbrokers and precious metal dealers to automatically submit online descriptions of received property within the preceding week. The third establishes a penalty section for violations of Chapter 6, Article 5. The second and third amendments are discussed in more detail below.
Routine Online Submissions
Lawrence pawnbrokers and precious metal dealers do not routinely submit to the Chief of Police descriptions of received property, despite statutory language requiring them to do so. See K.S.A. 16-715 (pawnbrokers or precious metal dealers must submit regular reports of received property within preceding week; city ordinance may prescribe manner of submission). Based upon this statutory authority, staff recommends that the City Commission adopt Ordinance 8925, which requires pawnbrokers and precious metal dealers to routinely submit a list of received property online to a website designated by the police department. Mandatory routine and online reporting may assist law enforcement recover stolen property or at the very least provide a gateway to solving crimes generally. A recent trial-run with an online database system helps illustrate this point.
The Lawrence Police Department obtained a free trial period of LeadsOnline, an online service that works nationally with law enforcement agencies and businesses when the businesses are mandated by law to report their transactions. The trial period ran from October 17, 2012 until November 20, 2012, and proved to be successful in recovering stolen property. The Douglas County Sheriff’s Office also recently subscribed to LeadsOnline after its trial period yielded similar success.
Other cities also using LeadsOnline include Olathe (Olathe Ord. 5.42.140 [reports must be submitted weekly in a computer format that meets specification of police department]); Kansas City (Kansas City Kansas Ord. 36-24[i] (Pawnbrokers must maintain an electronic inventory-tracking system and report such inventory to the police via internet website approved by the police department); Overland Park, Lenexa, and Johnson County. See also Wyandotte County Ord. 36-25 (pawnbroker must maintain “neat” handwritten copy of records as well as electronic records; must submit records to police chief or designee using internet website approved by the chief).
Mandating compliance with this new reporting system is not unduly burdensome. The Lawrence Police Department reports that it would pay for the online service, which is estimated to cost approximately $9,588/annual subscription, and that the pawnbrokers and precious metal dealers would gain access to the department’s data entry website through a password provided by the Department. After reaching out to and meeting with a number of pawnbroker and precious metal dealers in Lawrence, it was learned that several licensees in Lawrence already voluntarily submit to LeadsOnline. All businesses confirmed they have a computer and internet access.
Penalties for Code violations
Staff recommends adding a penalty section to Chapter 5, Article 5 (Pawnbrokers). K.S.A. 16-721 states that any violation of a provision of the Act (Pawnbroker statutes), is a class B misdemeanor. Because the City’s pawnbroker regulations derive their authority from the parallel statutory language, adding this penalty language is legally appropriate. In Lawrence Municipal Court, a class B misdemeanor carries with it a fine of up to $1,000 and imprisonment of up to 6 months. The proposed ordinance language reflects that penalty. On a first offense, the City Prosecutor’s Office states that it expects to recommend 12 months of non-reporting probation with a 90 day underlying jail sentence, and a $200 fine plus court costs.
Action Requested:
Adopt on first reading, Ordinance No 8925, defining precious metal dealers, requiring pawnbrokers and precious metal dealers to routinely submit to the Chief of Police descriptions of received property to a website designated by the police department, and establishing a penalty for violation of any Section under Chapter 6, Article 5 (Pawnbrokers).