HomeMy Public PortalAboutOrdinance No. 1377-18 12-10-2018ORDINANCE NO.1377-18
AN ORDINANCE OF THE CITY OF RICHLAND HILLS, TEXAS,
ADDING DIVISION 3, "PURCHASE AND SALE OF REGULATED
PROPERTY" TO ARTICLE V, "SECOND HAND GOODS DEALERS" OF
CHAPTER 18, "BUSINESSES" TO PROVIDE FOR THE REGULATION
OF CERTAIN SECONDHAND GOODS DEALERS; PROVIDING
DEFINITIONS; REQUIRING RECORDS TO BE MAINTAINED FOR
CERTAIN TRANSACTIONS; PROVIDING A REPEALING CLAUSE;
PROVIDING A SEVERABILITY CLAUSE; PROVIDING A PENALTY
FOR VIOLATION OF THE CHAPTER; PROVIDING FOR
PUBLICATION AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City of Richland Hills, Texas is a home rule city acting under its
charter adopted by the electorate pursuant to Article XI, Section 5 of the Texas Constitution
and Chapter 9 of the Local Government Code; and
WHEREAS, the Texas Occupations Code requires certain secondhand dealers and
persons engaged in the business of purchasing and selling certain crafted precious metals to keep
and maintain certain records and file reports for certain transactions; and
WHEREAS, pursuant to Texas Occupations Code section 1956.065, peace officers have
authority to inspect such crafted precious metals; and
WHEREAS, Section 1956.061 of the Occupations Code expressly allows a municipality
to adopt regulations related to crafted precious metal dealers; and
WHEREAS, pursuant to Section 371.204 of the Texas Pawnshop Act, a peace officer
may inspect a pawnbroker's books, accounts, papers, correspondence, or other records that relate
to the pawnbroker's business at any reasonable time without judicial writ or other process; and
WHEREAS, the City Council believes that the ability of peace officers to access certain
records electronically would enable such officers to prevent and investigate transactions in stolen
property and other unlawful property transactions more thoroughly and more efficiently; and
WHEREAS, the City Council believes it is in the best interest of the citizens of
Richland Hills that such officers be afforded every lawful means to prevent and investigate
crimes of this nature.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF RICHLAND HILLS, TEXAS:
SECTION 1.
That Chapter 18, Article V, is hereby amended by adding Division 3 "Purchase and
Sale of Regulated Property", to read as follows:
"DIVISION 3. PURCHASE AND SALE OF REGULATED PROPERTY
Sec. 18-271. -Purpose.
The purpose of this Division is to discourage an increasingly prolific and socially
deplorable business activity of dealing in stolen property by requiring, among other regulations,
the purchaser of certain regulated property to maintain a record identifying the authorized vendor
or to record and maintain a reliable form of identification of the seller, if the seller is other than a
manufacturer or authorized vendor. This Division will provide law enforcement with additional
measures to prevent transactions in stolen property.
Sec. 18-272. - Dei~nitions.
The following words, terms and phrases when used in this Division, shall have the
meanings ascribed to them in this section, except where the context clearly indicates a different
meaning:
Authorized vendor means a commercial supplier who deals in the wholesale distribution
of regulated property in the ordinary course of business.
Business day means any calendar day during which the person who purchases regulated
property has the business open and is conducting business with the public.
Business machine means a machine, such as, but not limited to, a typewriter, computer,
printer, adding machine, checkwriting device, cash register, calculator, addressing machine,
letter sorting or folding device, and any item of recording, copying or accounting equipment.
The term does not include office furniture or fixtures.
Crafted precious metals means jewelry, silverware, art objects, or any other thing or
object crafted, in whole or in part, from gold, silver, platinum, palladium, iridium, rhodium,
osmium, ruthenium or their alloys, or scrap or a broken item selling at five percent or more than
the scrap value of the item, but does not include coins, bullion or bars of such metals.
Dealer means any person who:
(1) Purchases regulated property for resale or salvage use; and
(2) Obtains more than 25% of the value of the person's total inventory of regulated
property from a source other than an authorized vendor or manufacturer.
Electronic Equipment means any electrical device including, but not limited to, a radio,
television, video recorder, home computer, accessories for home computer, video camera, stereo,
video gaming console, video game console accessory, or digital media player.
Electronic storage device means any digital or non-digital media storage device,
including but not limited to, a compact disk containing music, a compact disk containing a movie
or movies, video game, tape, record or USB storage device.
Household appliance means any appliance commonly used for household functions,
including but not limited to, a refrigerator, freezer, washing machine, dryer, stove, microwave
oven, dishwasher, or trash compactor.
Jewelry means gems, jewels, and objects made of precious metals that are worn for
adornment, including, but not limited to, stones removed from a mounting.
Lawn maintenance equipment means equipment that is generally used to maintain
property, including, but not limited to, a push lawn mower, self-propelled lawn mower, leaf
blower, leaf vacuum, or weed eater.
Person means an individual, corporation, partnership, joint venture, trust, association, and
any other legal entity.
Personal identification certificate means a certificate issued by the Texas Department of
Public Safety under Tex. Tax Trans. Code § 521.101.
Power tool means a tool powered by electrical or AC/DC current or by liquid or gaseous
fuel, including, but not limited to, pneumatic equipment and welding equipment.
Purchase means a transaction in which a person takes title to regulated property in
exchange for valuable consideration.
Regulated property includes, but is not limited to, new or used:
(1) Electronic equipment;
(2) Business machines;
(3) Cameras, video and photographic equipment;
(4) Power tools;
(5) Musical instruments;
(6) Firearms, as defined by state law;
(7) Jewelry;
(8) Crafted precious metals;
(9) Computers, radios, telecommunications equipment;
(10) Electronic storage devices;
(11) Lawn maintenance equipment; or
(12) Household appliances.
Sec. 18-273. -Records required.
In addition to any other requirements found in this Code or State law, a person who purchases
regulated property for the purpose of resale or salvage shall comply with the following
requirements:
(1) Keep an itemized sales record or report which identifies the manufacturer or
authorized vendor from which each item of regulated property was purchased and
a description of the regulated property purchased, including the make, model,
serial number, color and size; or
(2) If the regulated property is purchased from other than a manufacturer or
authorized vendor, the person shall:
a. At the time of purchase, record in a legible manner, the time and date of
purchase, the name, sex, race, date of birth, weight, height, address,
drivers license number or personal identification certificate number of the
seller, a description of the property purchased, including the make, model,
manufacturer, serial number, color and size, and the price paid or other
consideration exchanged for the property purchased;
b. At the time of purchase determine that the photograph on the drivers
license or personal identification certificate is a photograph of the seller;
c. Retain possession of the regulated property purchased and withhold the
regulated property from resale or salvage for a period of 20 business days
following the date of purchase;
d. Make the purchased regulated property available for inspection by any
peace officer during regular business hours while the regulated property is
in the person's possession;
e. Cause each item of purchased regulated property and any container thereof
to be kept intact, and have written or stamped in a conspicuous place
either on the container thereof or, if no container, on a tag attached
thereon, the serial number of the sales record required in subsection (1)
above, and this subsection (2) which number shall at all times be kept
plain and legible.
f. Cause each item of purchased regulated property not equipped with a
visible manufacturer serial number to be digitally photographed in its
original condition at the time of the transaction. The photograph must be
of such quality and detail to preserve a digital description of the regulated
property including any unique characteristics or markings. All purchased
crafted precious metals shall be digitally photographed in accordance with
this subparagraph.
(3) Preserve and maintain at the person's place of business the records, reports and
information required by subsections (1) and (2) above for a period of two years
following the date of purchase or until the regulated property is sold, whichever
occurs later.
(4) Regulated property purchase records required by this section shall be
electronically reported in a digital format within 48 hours of the transaction date
to the Richland Hills Police Department in a manner as specified by the Chief of
Police.
Sec. 18-274. -Inspection by peace officer.
A person who purchases regulated property for the purpose of resale or salvage shall
allow any peace officer during regular business hours to inspect the person's records and reports
that relate to the regulated property and shall provide the records or reports required by
subsections (1) or (2) of Section 18-273 of this Division immediately upon request at a
reasonable time by a peace officer.
Sec. 18-275. -Exemptions.
This Division shall not apply to:
(1) Automobile dealerships;
(2) The sale of aluminum cans;
(3) Charitable or eleemosynary organizations;
(4) Used or secondhand clothing businesses;
(5) Garage Sales;
(6) Pawnbrokers, pawnshops, or other businesses licensed under the Texas Pawnshop
Act (Texas Finance Code § 371.001, et. seq.); except that a pawnbroker,
pawnshop, or other business licensed under the Texas Pawnshop Act shall
electronically report all transactions in a digital format within 48 hours of the
transaction date to the Richland Hills Police Department in a manner as specified
by the Chief of Police.
Sec. 18-276. -Offenses.
(a) A person commits an offense if the person:
(1) Violates or fails to comply with any provision of this Division;
(2) Fails to retain possession of regulated property and withhold the regulated
property from resale or salvage for a period of 20 business days following the date
of purchase;
(3) Offers for sale or sells regulated property previously purchased for resale or
salvage for which the person does not have:
a. a sales record identifying the manufacturer or authorized vendor from
which it was purchased and a description of the property purchased,
including the make, model, serial number, color and size;
b. a record of the name, sex, race, date of birth, weight, height, address and
drivers license or personal identification certificate number of the seller
from whom the person purchased the regulated property and the price paid
or other consideration, exchanged for the regulated property purchased or
paid;
c. a record of the name, sex, race, date of birth, weight, height, address and
drivers license or personal identification number of the purchaser and the
price paid or other consideration paid or exchanged for the regulated
property; and
d. a digital photograph depicting the original condition of the non-serialized
regulated property or crafted precious metal at the time of the transaction
of such quality and detail as to preserve a digital description of the
regulated property including any unique characteristics or markings.
(4) Fails or refuses to produce for examination and inspection by a peace officer:
a. the records required by subsections (1) or (2) of Section 18-273 of this
Division with respect to a particular item of regulated property, when
requested to do so at a reasonable time by the peace officer; or
b. the regulated property to which the records required by subsections (1) or
(2) of Section 18-273 of this Division relate, when requested to do so at a
reasonable time by the peace officer.
(5) Purchases for resale, offers for sale, or sells regulated property which has had the
manufacturer's identification number or any other identifying mark removed,
defaced or altered.
(6) Purchases or receives an item of property sealed or with its original packaging
unopened unless the person conveying such item presents a receipt or proof of
purchase for the item.
(7) Purchases regulated property from a minor, meaning a person under the age of 18
years, unless the minor's parent or guardian shall state in writing that such
transaction is taking place with the parent or guardian's full knowledge and consent.
This statement shall be maintained on file for one year from the date of purchase.
(b) An offense under this chapter is punishable by a fine of not less than $100 or more than
$500, and a violation constitutes a separate offense for each item of regulated property
involved.
Secs. 18-277 - 18-280 Reserved."
SECTION 2.
This ordinance shall be cumulative of all provisions of ordinances and of the Code of
Ordinances of the City of Richland Hills, Texas, as amended, except where the provisions of this
ordinance are in direct conflict with the provisions of such ordinances and such Code, in which
event the conflicting provisions of such ordinances and such Code are hereby repealed.
SECTION 3.
It is hereby declared to be the intention of the City Council that the phrases, clauses,
sentences, paragraphs, and sections of this ordinance are severable, and if any phrase, clause
sentence, paragraph or section of this ordinance shall be declared unconstitutional by the valid
judgment or decree of any court of competent jurisdiction, such unconstitutionality shall not affect
any of the remaining phrases, clauses, sentences, paragraphs and sections of this ordinance, since
the same would have been enacted by the City Council without the incorporation in this ordinance
of any such unconstitutional phrase, clause, sentence, paragraph or section.
SECTION 4.
(a) Any person, firm, corporation, or business entity violating this Ordinance shall be
deemed guilty of a Class C misdemeanor, and upon conviction thereof shall be fined not less
than $100 nor more than $500. Each continuing day's violation under this Ordinance shall
constitute a separate offense.
(b) The penal provisions imposed under this Ordinance shall not preclude Richland
Hills from filing suit to enjoin the violation. Richland Hills retains all legal rights and remedies
available to it pursuant to local, state, and federal law.
SECTION 5.
The City Secretary of the City of Richland Hills is hereby directed to publish this
ordinance or caption to the extent required by law.
SECTION 6.
This Ordinance shall be in full force and effect from and after its passage and publication
as provided by law.
PASSED AND APPROVED ON THIS 10`h DAY OF DECEMBER, 2018.
T E HONOR LE ED EZ, MAYOR
ATTEST:
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BETSY ELAIY.L, ~ITY~ATTORNEY