ORD 2013-29 - Amending Ch 14 Business Regulations ORDINANCE NO. 2013-29
AN ORDINANCE AMENDING THE CITY OF HUNTSVILLE, TEXAS CODE OF
ORDINANCES, SPECIFICALLY CHAPTER 14 `BUSINESS AND BUSINESS
REGULATIONS", BY ADDING A NEW ARTICLE VI "SECONDHAND JEWELRY AND
CRAFTED PRECIOUS METAL"; PROVIDING FOR A PENALTY; MAKING OTHER
PROVISIONS AND FINDINGS THERETO; AND DECLARING AN EFFECTIVE DATE.
WHEREAS,the Huntsville Code of Ordinances,Chapter 14`Business and Business Regulations"provides for the
regulation of certain businesses for the health, safety and public welfare of the City's residents:
WHEREAS,the City Council of the City of Huntsville,Texas now wishes to amend Chapter 14 by adding a new
Article VI to be entitled "Secondhand Jewelry and Crafted precious metal" and appropriate subsections to help
promote the health,safety and welfare of its residents;
WHEREAS,notice of the agenda for this meeting, was given in accordance with law by posting the same at the
place reserved and designated for notices of public meetings and public activities and prior to the adoption of this
ordinance.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF HUNTSVILLE,TEXAS,that:
SECTION l: The facts and matters set forth in the preamble of this Ordinance are found to be true and correct
and are hereby adopted,ratified,and confirmed.
SECTION 2: Huntsville Code of Ordinances Chapter 14"Business and Business Regulations"
is amended by adding a new Article VI as provided below;
Article VI:"SECONDHAND JEWELRY AND CRAFTED PRECIOUS METAL";
Sec. 14-221. Application of Article
This article does not apply to crafted precious metal,jewelry, money, or silverware that has been
acquired in good faith in a transaction involving the stock in trade of another dealer who previously made
the reports required by this article, another city ordinance where the transaction occurred, or where
requirements are in compliance with or excepted by V.T.C.A.,Occupations Code §§ 1956.051-1956.060.
This article does not apply to a pawnshop licensed under Chapter 371 (Pawnshops) of the Texas Finance
Code or pawn shops that are already required by the State of Texas to keep records of purchases of crafted
precious metals and jewelry. This article does not apply to a non-profit business that sells only donated
items.
Sec. 14-222.Definitions
For the purpose of this article,the following terms shall have the respective meaning given herein:
Business shall mean an activity carried on by any person who buys secondhand jewelry, money,
silverware or crafted precious metal, as defined in this section, for profit. The term "business' shall n
include occasional purchases or sales made by a hobbyist.
Crafted precious metal shall mean ,jewelry, silverware, art object, or another object, other
than a coin or commemorative medallion,made in whole or in part from crafted precious metal.
Dealer shall mean any person who buys, takes in trade, accepts for sale on consignment, or accepts
for auction,used jewelry,money,silverware,or crafted precious metal,as defined herein,in this section for
profit.The term"dealer"shall not include occasional purchases or sales made by a hobbyist so long as items
are not purchased and the same items expressly sold for profit.
Money shall mean money which has numismatic value.
Person shall mean any individual,corporation or partnership and includes the plural.
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Crafted precious metal shall mean gold or gold plated or covered items of at least ten karat (as
that term itself is understood in the:jewelry profession); silver or silver plated or covered items of at
least 92.5 percent silver or stamped "sterling"; platinum; palladium; iridium; rhodium; osmium;
ruthenium;or the alloys of the same.
Secondhand.jewelry shall mean previously owned articles made from or including crafted precious
and semi-precious metal,silver,gold,diamonds,sapphires,rubies,pearls,emeralds,and gems,and includes
such personal items as watches,rings,pendants,chains,fobs,brooches,and necklaces.
Semiprecious gems shall mean stones including but not limited to such stones as jade, tanzanite,
tsavorite,garnets and aquamarines.
Silverware shall mean silver or silver-plated flatware,trays,goblets,dishes or serving pieces.
Temporary location shall mean any place or premises which has not been hired,rented or leased for at
least 90 days,in,upon,or from which business is conducted.
Sec. 14-223.Permit
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(a) Any dealer who engages in the business of buying secondhand jewelry, money, silverware, or
crafted precious metal shall obtain a permit before engaging in such business within the city. It shall be a
violation of this article for such dealer to fail to have a permit or fail to keep said permit current.A separate
permit is required for each place of business operated in accordance with this article.
(b) Any person desiring a permit shall make application in writing to the chief of police on a form
provided for that purpose. Such form shall be sufficient if it includes the following minimum information:
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(1) Name,address,and telephone number of applicant;
(2) Business address of applicant;
(3) Time period or periods during which business will be conducted;
(4) Location where business will be conducted;
(5) Whether or not the applicant, or any co-principal or employee, has been found guilty of any
criminal offense as defined in title 7 of the Texas Penal Code(V.T.C.A.,Penal Code ch. 28 et
seq.) or its criminal equivalent of this or any other jurisdiction by any court of competent
jurisdiction and,if so,the venue of such offense and penalty imposed;
(5) Whether or not the applicant has been or is currently a party to any civil litigation arising out of
sales or purchases of any goods or services,and; if so,the identity of all parties to the suit,the
location of the suit,and the outcome of the suit;
(7) Whether the applicant has ever before engaged in business under an assumed name, and; if so,
the name of such business.
Sec. 14-224. Issuance of permit;fee.
(a) Upon receipt of the application as herein prescribed, the chief of police shall issue a permit
upon the further payment of a nonrefundable permit fee of$50.00; provided,however,that no
permit shall be issued to any applicant who has been found finally guilty of a criminal offense
against property as defined in title 7 of the Texas Penal Code(V.T.C.A.,Penal Code Ch. 28,et
seq.) by a court of competent jurisdiction within the preceding ten years of the date of the
application. A permit is valid for three years from the date of the application. It shall be the
responsibility of the permit holder to submit an application for renewal of the permit prior to its
expiration date.
(b) A permit issued in accordance with this law may be summarily revoked by the chief of police
if its holder is found guilty of a criminal offense as defined in title 7 of the Texas Penal Code
(V.T.C.A., Penal Code ch. 28 et seq.) or its criminal equivalent by a court of competent
jurisdiction. Within ten days of such revocation by the chief of police, the permit holder shall
have the right of appeal to the city council whose decision shall be final.
Sec. 14-225. Records of purchases.
(a) Upon the purchase of any goods defined in Section 14-222,permit holders shall record,in a
well-bound book kept exclusively for such purpose,the following information:
(1) The name, address, physical description, along with driver's license number, a state
approved pictured identification card number, military ID number or passport number of
the seller of any secondhand jewelry,money,silverware,or crafted precious metal.
(2) A complete and accurate description of the property purchased,including the serial number
or other identifying number if visible,and other identifying characteristics.
(b) Purchaser shall identify by tag or other means each purchased item in addition to the book
record required herein. Such identification shall be by, date purchased and a number
keyed to the purchases book entry in subsection(a)of this section.
(c) No permit holder shall purchase any secondhand jewelry, coins, silverware,or crafted precious
metal from any person under the age of 18 years unless such seller presents a written statement
from such seller's parent or legal guardian consenting to such sale, which statement shall be
retained and recorded by the permit holder.
(d) A permit holder purchasing secondhand jewelry, coins, silverware or crafted precious metal
shall obtain a signed warranty from the seller that the seller has the right or authority to sell the
property,which statement shall be retained and recorded by the permit holder.
(e) All books and records required to be kept under this article shall be open and available
for inspection at reasonable hours by any bona fide peace officer.
(f) All books and records required to be kept under this article shall be continuously
maintained and kept for a minimum period of two years.
Sec. 14-226.Purchase at temporary locations.
Any dealer who conducts business from a temporary location within the city and who does not
maintain a permanent address or location in the city, shall make and deliver records of purchase,in form as
required to be had and maintained herein by those who do have permanent locations, to the chief of police
within one working day of terminating the temporary location.
Sec. 14-227.Report of purchasing
(a) Not later than 72 hours after the time it is received, each dealer shall make an inventory report
of all secondhand jewelry,money,silverware or crafted precious metal that the dealer purchases,
takes in trade, accepts for sale on consignment, or accepts for auction to the police department.
Said report shall be sufficient if it is in the format and contains the same information as the
records required in section 14-225. Said report can be delivered in person to the police
department or sent "normal mail" through the U.S. Postal System to the police department. The
mailed reports will be addressed per instructions received at the time the dealer's permit is
issued.
(b) Notwithstanding the provisions of subsection (a) of this section, each dealer shall comply with
all of the reporting requirements of subchapter B of chapter 1956 of the Texas Occupations
Code(V.T.C.A. Sections 1956.051-069.)
Sec. 14-228.Retention of property.
A dealer may not melt,deface, alter,or dispose of in any manner secondhand jewelry,metal,money,
silverware or crafted precious metal before the 15th day excluding weekends, after the day on which the
report of purchase was mailed to the police department or the date the required report of purchase was
delivered to the police department by means other than mail.
Sec. 14-229. Penalty for violation of this article.
In addition to any other penalty provided for by law:
(1) A person commits an offense if he or she violates by commission or omission any provision of
this article that imposes upon said person a duty or responsibility.
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(2) A person who violates a provision of this article as provided for herein is guilty of a separate
offense for each day or portion of a day during which the violation is committed,continued,
or permitted;and each offense shall be punishable by a fine of not exceeding$500.00.
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Sec(s). 14-230-249—reserved
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y SECTION 3: All ordinances or parts of Ordinances that are in conflict or inconsistent with the provisions of
this Ordinance shall be,and the same are hereby,repealed and all other ordinances of the City not in conflict with
the provisions of this Ordinance shall remain in full force and effect.
SECTION 4: Should any paragraph, sentence, clause,phrase or section of this Ordinance be adjudged or held
to be unconstitutional,illegal or invalid,the same shall not affect the validity of this Ordinance as a whole or any
part or provision thereof,other than the part so declared to be invalid,illegal or unconstitutional.
SECTION 5: This Ordinance,being a penal ordinance,becomes effective ten(10) days after its date of passage
by the City Council,as provided by Article 4.14 of the Charter of the City of Huntsville,Texas.
First Reading Date: June 4,2013
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PASSED AND APPROVED on the Second Reading on this the 18"'day of June 2013.
THE CITY OF HUNTSVILLE
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Mac Woodwar ,Mayor
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ATTEST: APPRO D AS TO FORM:
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Le o dward,City Secret ry o and Schneider,City Attorney
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