SUPPORTS ITEM NO. 2
P&E COMMITTEE AGENDA
MARCH 14, 1996
ADMINISTRATIVE REPORT
Date: February 27, 1996
Dept. File: SHD/sechnd.rtc
TO: Standing Committee on Planning and Environment
FROM: Chief Constable, in consultation with the
Director of Permits & Licenses
SUBJECT: Proposed Amendments to By-laws
Regulating Second-hand Dealers and Pawnbrokers
RECOMMENDATION
A. THAT Council approve in principle the proposed amendments to
the Second-hand Dealers and the License By-laws, as outlined
in Appendix A of this report.
B. THAT Council instruct the Director of Legal Services to
bring forward the appropriate by-law amendments.
CHIEF CONSTABLE'S COMMENTS
The Chief Constable RECOMMENDS approval of A and B.
COUNCIL POLICY
There is no relevant Council policy.
PURPOSE
This report recommends several amendments to the Second-hand Dealers
By-law. The intent of the changes is to facilitate improved clarity
and understanding of the requirements and to make the by-law more
effective in the regulation of secondhand stores and pawnshops. This
should result in more effective enforcement of the by-law.
BACKGROUND
The Second-hand Dealers By-law was enacted on June 14, 1943, and,
apart from regular fee revisions, the by-law has not had many
substantive revisions since that time.
DISCUSSION
Over the past few years there has been a dramatic increase in the
number of secondhand stores and pawnshops in the city, particularly in
the East Downtown and the Granville Street area. Coincidentally, the
past few years has seen a marked increase in the number of break and
enters and theft from automobiles. A significant amount of this
stolen property has found its way into City secondhand stores and
pawnshops.
Staff of the Police and Permits & Licenses Departments undertook a
review of the by-law to provide effective regulation of secondhand
stores and pawnshops and to ensure staff provide clear and concise
information to license holders and the public. Recently, the Police
Department revised the daily report form to simplify the daily
reporting required of secondhand store and pawnshop operators. Also,
staff have been meeting with representatives of the Secondhand
Dealers' Association to discuss proposed by-law revisions and the
Police Department has provided copies of relevant sections of the by-
law to all license holders.
The review of the by-law by staff of the Police, Permits & Licenses
and Law Departments revealed the need to amend the by-law. If
approved, the proposed amendments in Appendix A would, among other
things:
(a) specifically exclude persons who only buy or sell secondhand
books, papers and magazines;
(b) require secondhand dealers and pawnbrokers to confirm the
identities of persons selling goods to them by means of
photo i.d's;
(c) change the requirement for holding all types of property
from 15 to 30 days and the time for sale after notification
from 48 to 72 hours, to slow down the turnover of goods,
thereby allowing Police more time to identify stolen
property;
(d) make it easier for secondhand dealers and pawn-brokers to
deliver details of goods purchased to the Police Department
by allowing the use of fax machines or other electronic
means; and
(e) increase the maximum penalty from $2,000 to $5,000, and the
minimum from $100 to $200.
The Director of Legal Services has reservations about item (b) above;
he feels it could form the basis of a successful legal challenge using
the Charter of Rights argument.
SOCIAL IMPLICATIONS
If approved, the proposed amendments should result in better
enforcement of the by-law and, ultimately, a reduction in the number
of break and enters and thefts from automobiles. This would contribute
to a safer environment for citizens of and visitors to Vancouver.
IMPLEMENTATION AND COMMUNICATION PLAN
The secondhand store and pawnshop industry was made aware of the
proposed amendments in June and September 1995. A copy of this report
has been made available and discussed with industry representatives.
Upon approval of the amended by-law, the industry will be advised of
the changes in writing. Notices will be placed in all local Vancouver
newspapers.
CONCLUSION
As the City of Vancouver continues to develop as a major tourist
destination, it is important we protect and improve our image as a
clean, safe and cosmopolitan city. It is even more important that our
citizens have a safe living environment. For a number of years the
Police have endeavoured to enforce the Second-hand Dealers By-law with
minimal cooperation from some of the license holders. The amendments
to the by-law will clarify the by-law and provide Police a better
vehicle for enforcement and action against those who violate its
provisions.
Positive enforcement can only yield a positive change.
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APPENDIX A
Page 1 of 3
PROPOSED AMENDMENTS TO THE SECOND-HAND DEALERS BY-LAW
A. That the Second-hand Dealers By-law be renamed the Secondhand
Dealers and Pawn Brokers By-law and that the term be amended
throughout the by-law.
B. That the by-law be amended to specifically exclude from its
operation persons who only buy or sell secondhand books, papers
and magazines.
C. That the by-law be amended to alter or add the following
definitions:
"Junk Dealer" means a secondhand dealer who carries on
business as a dealer in junk or keeps a junk dealer's
shop or store or buys or sells old junk, scrap rubber,
tires, waste or scrap metal, used bottles, broken
glass, old paper, sacks, wire, machinery or similar
articles or things.
"License" means a license to carry on a business,
trade, profession or other occupation issued under the
License By-law.
"Picture Identification" means a valid Driver's
Licence, provincial Identification Card or passport
provided that such identification contains a photograph
which is integrated with it.
D. That the by-law be amended to require that every second-hand
dealer, junk dealer and pawn broker shall at all reasonable times
permit the Chief Constable or any member of the police force to
enter into and inspect any premises used in connection with the
business, and that any person who refuses entry shall be guilty
of a contravention of the by-law.
E. That section 3 of the by-law be amended to delete the ability of
a second-hand dealer, junk dealer or pawn broker to enter a
record of a purchase or sale immediately after the transaction,
but retaining the requirement that it be entered at the time of
the transaction.
F. That section 3 of the by-law be amended to require that a
duplicate of the original record be made of the record referred
to in proposal E.
Appendix A
Page 2 of 3
G. That section 3 of the by-law be amended to require that the
record of the transaction include the following new types of
information:
a) the make, model and serial number of the article
received;
b) confirmation of the name, residence and address of the
person from whom the article was received or purchased
by way of a picture identification, as defined in
proposal C.
H. That section 3(4) be amended to provide that as an alternative to
hand delivery of a copy of the record referred to in proposal E a
second-hand dealer or junk dealer may transmit such a record by
facsimile or other electronic means in a form to be provided by
the Chief Constable.
I. That section 3(12) be amended to extend the period that a second-
hand dealer or junk dealer must hold an article before altering,
removing, disposing of or selling from 15 days to 30 days,
therefore resulting in the same time period for jewellery and all
other articles.
J. That section 3(13) be amended to extend the period of
notification to the Chief Constable before reselling or disposing
of an article from 48 hours to 72 hours.
K. That section 4(6) of the by-law be amended to change the minimum
age of a person from whom a pawn broker can buy goods from 19 to
18.
L. That the by-law be amended to require that no second-dealer, junk
dealer or pawn broker take in any article, goods or thing where
its serial number or other identifiable marking has been tampered
with or removed.
M. That the by-law be amended to increase the maximum fine on
conviction from $2,000 to $5,000 and the minimum fine on
conviction from $100 to $200 for each offence.
N. That the by-law be amended to require that all goods, articles
and things purchased or received by a secondhand dealer be kept
physically separate from goods left in pawn, and separately
tagged.
Appendix A
Page 3 of 3
O. That the by-law be amended to require that all registers
containing any entry less than 24 months old shall be kept on the
premises, but to permit all other registers to be kept off the
premises.
P. That the License By-law be amended to clarify the definition of
"junk dealer" by redefining it as a "junk dealer, mobile".
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