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July 10. 2012 11:13PM
Sellers of used goods want rules loosened in Salem
SALEM — Second-hand dealers are asking the town to take a second look at the town’s pawnshop ordinance.
The ordinance requires detailed reporting and a 30-day hold on items brought to pawnbrokers and dealers for resale.
Two local businessmen addressed the Board of Selectmen Monday night about how the regulations affect businesses that resell low-cost items such as comic books and CDs.
“We literally buy back over 100,000 items a year and many of those items are under $1,” said Brett Wickard, owner of Bull Moose.
Each transaction requires paperwork, including a copy of the seller’s driver’s license. His store has about 15,000 DVDs, CDs and other items on 30-day hold, Wickard said. He estimated that it costs about $72,000 annually to stay in compliance with the ordinance.
It would be more efficient to remove the hold on low-cost items but require the store to provide detailed documentation, Wickard said. He also recommended that the town consider an electronic database, such as the “Leads Online” software used by many municipalities.
Wickard agreed that transactions over $20 should be held while police determine whether the property is stolen.
Bull Moose decided against renovating the Salem location to include book buy-backs because of the space it would require to hold them, Wickard said. The retailer has operated in Salem for about a decade and also has locations in Portsmouth and Portland, Maine.
Newbury Comics Regional Manager Sean O’Brien agreed with Wickard
“Essentially, in every material way we’re in the same situation,” O’Brien said.
The hold is a big concern for Newbury Comics because timeliness is important in the CD market. Titles that are in demand today might be old news in 30 days.
Deputy Chief Shawn Patten said the town has about 21 licensed pawn brokers and re-sellers dealing in everything from books and CDs to expensive jewelry.
Pawned goods saw a 30 percent increase from 2008 to 2011 and roughly 40,000 slips are processed each year, resulting in over 70 arrests, Patten said. He believes the increase is related to drug issues in town, Patten said.
“The dollar amount to us doesn’t matter; it’s the stuff that’s there,” Patten said.
Linking a small item to a crime can result in an arrest, Patten said. The holding period gives police time to thoroughly investigate the sale. Other communities, including Manchester and Nashua, require a holding period of at least 30 days, while regulations in other places can require holds of 60 to 90 days, Patten said.
“We think 30 days is fair,” Patten said.
Large retailers report a lot of stolen CDs, Patten said, because they’re easy to steal and can get a good price when new. The ordinance helps identify people who pawn such items at multiple stores, Patten said.
Lowering the dollar amount required for reporting could help people circumvent the system, Patten said. For example, a shop could avoid a $25 limit by processing several items at $24.99 each.
The town is aware of Leads Online and has been watching as Manchester implements the system. The two departments may consider taking a regional approach to the problem, Patten said, although he didn’t have a firm timeline.
“I think Leads Online is going to be a win-win for everybody,” Patten said.
Selectmen suggested the store owners create a written proposal for law enforcement to review. The Board will receive an update in a month or two.
Julie Hanson may be reached at Jhanson@newstote.com.
The ordinance requires detailed reporting and a 30-day hold on items brought to pawnbrokers and dealers for resale.
Two local businessmen addressed the Board of Selectmen Monday night about how the regulations affect businesses that resell low-cost items such as comic books and CDs.
“We literally buy back over 100,000 items a year and many of those items are under $1,” said Brett Wickard, owner of Bull Moose.
Each transaction requires paperwork, including a copy of the seller’s driver’s license. His store has about 15,000 DVDs, CDs and other items on 30-day hold, Wickard said. He estimated that it costs about $72,000 annually to stay in compliance with the ordinance.
It would be more efficient to remove the hold on low-cost items but require the store to provide detailed documentation, Wickard said. He also recommended that the town consider an electronic database, such as the “Leads Online” software used by many municipalities.
Wickard agreed that transactions over $20 should be held while police determine whether the property is stolen.
Bull Moose decided against renovating the Salem location to include book buy-backs because of the space it would require to hold them, Wickard said. The retailer has operated in Salem for about a decade and also has locations in Portsmouth and Portland, Maine.
Newbury Comics Regional Manager Sean O’Brien agreed with Wickard
“Essentially, in every material way we’re in the same situation,” O’Brien said.
The hold is a big concern for Newbury Comics because timeliness is important in the CD market. Titles that are in demand today might be old news in 30 days.
Deputy Chief Shawn Patten said the town has about 21 licensed pawn brokers and re-sellers dealing in everything from books and CDs to expensive jewelry.
Pawned goods saw a 30 percent increase from 2008 to 2011 and roughly 40,000 slips are processed each year, resulting in over 70 arrests, Patten said. He believes the increase is related to drug issues in town, Patten said.
“The dollar amount to us doesn’t matter; it’s the stuff that’s there,” Patten said.
Linking a small item to a crime can result in an arrest, Patten said. The holding period gives police time to thoroughly investigate the sale. Other communities, including Manchester and Nashua, require a holding period of at least 30 days, while regulations in other places can require holds of 60 to 90 days, Patten said.
“We think 30 days is fair,” Patten said.
Large retailers report a lot of stolen CDs, Patten said, because they’re easy to steal and can get a good price when new. The ordinance helps identify people who pawn such items at multiple stores, Patten said.
Lowering the dollar amount required for reporting could help people circumvent the system, Patten said. For example, a shop could avoid a $25 limit by processing several items at $24.99 each.
The town is aware of Leads Online and has been watching as Manchester implements the system. The two departments may consider taking a regional approach to the problem, Patten said, although he didn’t have a firm timeline.
“I think Leads Online is going to be a win-win for everybody,” Patten said.
Selectmen suggested the store owners create a written proposal for law enforcement to review. The Board will receive an update in a month or two.
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Julie Hanson may be reached at Jhanson@newstote.com.