Pawn brokers oppose push for electronic filing

After listening to opposition about a proposed law requiring city pawn shops to convert to an electronic filing system, the Kalispell City Council on Monday voted to table the ordinance.

The ordinance would require both pawn shops and secondhand stores to use electronic filing software called Leads, which would connect the inventory of those businesses to the Kalispell Police Department.

Each item brought into a shop would be filed on the system, which would allow police to more efficiently search for stolen items that have been resold. Items sold to the pawn broker valued over $50 would be logged by the end of the work week, and the item would be held for two weeks so officers could locate the items.

While some pawn shop owners agreed an electronic system could be helpful, several people attending the public hearing said requiring the electronic system would strain their businesses.

A main concern over the proposed filing system is the amount of privacy it could remove from the buyer. The ordinance defines a customer as any person or entity who “deposits, pledges, sells, trades, barters or exchanges personal property, secondhand goods, wares, merchandise or other valuable things to an operator”, or pawnbroker.

A “customer” would be required to present their name, date of birth, current address and picture identification card, such as a driver’s license or passport, during every transaction with the shop.

Local pawn brokers felt this would be an infringement on the privacy of people who use pawn shops to buy goods. Since the buyer is technically defined under “customer” in the ordinance, they would need to provide a considerable amount of information with each purchase.

Several pawn brokers pointed out that many people don’t want to give this information when buying, and it would give the pawn shops a reputation for selling stolen goods, making the buyer feel responsible.

Pawn brokers and secondhand dealers also found fault in a section of the ordinance stating that dealers should hold items for 14 days before reselling them, giving the police ample time to locate the item. They said this would clog up their stores and create a need for much more storage space, especially for shops such as Replay Sports, who deal with large items, such as bikes, kayaks and rafts. Most shops only hold items for around three days before putting them on the shelf.

Brokers also wondered who was responsible for providing the software, and which specific businesses would fall under the ordinance. Many pawn shops lie outside city limits, and thus are governed by the county.

Currently, most pawn shops keep written records of their expensive items, and allow police officers access to these and items in the shop if needed.

The council agreed that the ordinance was not ready for “prime time” and scheduled a work session for Oct. 27, open to the public, to discuss changes.