DEPARTMENT OF SAFETY AND HOMELAND SECURITY

Division of State Police

Statutory Authority: 24 Delaware Code, Section 2311 (24 Del.C. §2311)

FINAL

PUBLIC NOTICE

2300 Pawn Brokers and Junk Dealers

Notice is hereby given that the Department of Safety and Homeland Security, Division of State Police, in accordance with 24 Del.C. Section 2311 intends to adopt Rules and Regulations. This adoption will allow the regulation of Pawnbrokers, Secondhand Dealers, and Scrap Metal Processors.

These Rules and Regulations are promulgated pursuant to 24 Del.C. Section 2311 and the Secretary of Safety and Homeland Security delegates his regulatory authority granted by Chapter 23 to the Division of State Police.

2300 Pawn Brokers and Junk Dealers

1.0 Licensing

1.1 Any individual applying for a pawnbroker, secondhand dealer or scrap metal processor license under Title 24 Chapter 23 must meet and maintain the following qualifications:

1.1.1 Must not be convicted of any felony within 5 years of application date; and

1.1.2 Must not have been convicted of any misdemeanor involving theft or fraud within 5 years of application date; and

1.1.3 Must not have been convicted of any misdemeanor involving drugs within 3 years of application date.

1.2 A license for a pawnbroker, secondhand dealer or scrap metal processor will not be issued if there is a pending charge as listed in Section 1.1.1, 1.1.2, or 1.1.3.

1.3 The individual applying for a pawnbroker, secondhand dealer or scrap metal processor under Title 24 Chapter 23 must also meet the following qualifications:

1.3.1 Must be at least 18 years of age; and

1.3.2 Must have a valid Delaware Business License; and

1.3.3 Physical location of business must be in the State of Delaware; and

1.3.4 Appropriate taxes must be filed to the State of Delaware and the United States of America; and

1.3.5 License must be prominently displayed within the business along with the Delaware Business License.

1.4 The individual applying for licensure under Title 24 Chapter 23 must complete the following for approval:

1.4.1 Applicant must appear in person at the Delaware State Police Criminal Investigative Unit (CIU) at Troop 2, Troop 3 or Troop 4 in their respective county, to submit the initial application. Licenses will be renewed annually. Renewal applications may be submitted via mail; and

1.4.2 Any and all applications required by the Delaware State Police CIU; and

1.4.3 Submit fingerprints, if requested to confirm the status or existence of a Delaware (CHRI) criminal history. The Director of the State Bureau of Identification (SBI) determines the fee for this process.

1.5 Notification of a change of address for the business during the license year must be made to the Delaware State Police CIU at Troop 2, Troop 3 or Troop 4.

2.0 Notification of Arrest

2.1 Anyone licensed under Title 24 Chapter 23 shall notify the Delaware State Police CIU within five (5) days of being arrested for a misdemeanor or felony crime. Failure to do so may result in the suspension or revocation of any pawnbroker, secondhand dealer, or scrap metal processor.

3.0 Revocations and Emergency Suspensions

3.1 The Director of State Bureau of Identification (SBI) shall have the power to issue the revocation or emergency suspension of any individual licensed under Title 24 Chapter 23 that violates the Chapter or the promulgated Rules & Regulations.

3.2 The Director of SBI shall issue an emergency suspension due to:

3.2.1 Any conduct of the applicant deemed to be a threat to public safety; and/or

3.2.2 Any felony arrest; and/or

3.2.3 Any arrest of a misdemeanor involving the crime of theft, receiving stolen property, fraud related charges, or any crime involving drugs.

3.3 The Director of SBI shall issue the revocation of any applicant due to:

3.3.1 Any conduct of the applicant deemed to be a threat to public safety; and/or

3.3.2 Any felony conviction; and/or

3.3.3 Any conviction of a misdemeanor involving the crime of theft, receiving stolen property, fraud related charges, or any crime involving drugs.

3.4 The Director of SBI must give written notice to the applicant stating the intent of revocation or an emergency suspension and the grounds therefore.

3.4.1 Any applicant that has been revoked or suspended is entitled to a hearing before the Pawnbrokers hearing Committee.

3.4.1.1 The Pawnbrokers Hearing Committee will be comprised of a DSP Executive Staff Member and the DSP CIU Troop Commander or Designee in respective county [of business]. The Director of SBI and a representative of the Attorney General’s Office may attend but not vote.

3.4.2 Anyone requesting a hearing shall notify the Director of SBI, in writing, within 30 days from the revocation or emergency suspension and the hearing shall be scheduled within 30 days of the filing of the request.

3.5 Anyone whose license has been revoked cannot be reinstated. The applicant must follow the standard licensing application process to apply for a new license.

11 DE Reg. 687 (11-01-07)(Final)