§ 21-181. Licensing and operation.

(a)

It shall be unlawful for a person to operate an automated kiosk at any location within the City of Glendale without first obtaining a license pursuant to this article. The license to operate an automated kiosk shall be issued pursuant to this article instead of any other special regulatory or general business license required under article I or article III of this chapter of the City code, respectively.

(b)

A separate license shall be obtained, and a separate licensing fee shall be paid for each automated kiosk. A licensee may submit one application for multiple locations. The city will issue a separate license for each approved location.

(c)

A license issued pursuant to this article is valid for a period from the date of issuance to December 31 of the same calendar year.

(d)

Each automated kiosk(s) shall operate only at the location(s) identified on the application and issued a license pursuant to section 21-181 (b). The application shall identify all locations where consumer electronic devices collected in automated kiosks within the City of Glendale are processed, stored, managed, or maintained, even if such action occurs outside the City of Glendale. Consumer electronic devices collected in automated kiosks within the City of Glendale, may be processed, stored, managed, or maintained at locations not identified on the license only with the written and signed consent of the City of Glendale.

(e)

Application requirements; procedure . Any person desiring to obtain a new or renewal license must apply to the City of Glendale by submitting a complete application, the applicable fee, and fingerprint records to the City of Glendale, Tax and License division.

(1)

The application shall include, but not be limited to, the following information:

a.

The names, addresses, and contact information for all controlling persons and designated agents of the applicant.

b.

All locations within the City of Glendale at which the applicant intends to operate a kiosk and the number of kiosks that will be in service at each such location.

c.

The location(s) where any consumer electronic devices placed in kiosks within the City of Glendale may be processed, stored, managed, or maintained.

(2)

Fingerprint records are required:

a.

On all new applications, for all applicants and controlling persons; and

b.

For any existing license, for all changes in controlling person that occur during the licensing period; and

c.

For renewal applications, for any controlling person(s) not previously fingerprinted for the licensee.

(3)

Fingerprints shall be submitted in a form approved by the City of Glendale. The fingerprints shall be submitted to the Arizona Department of Public Safety to be used to obtain a state and federal criminal records check in accordance with A.R.S. § 41-1750 and Public Law 92-544. The Arizona Department of Public Safety is authorized to exchange this fingerprint data with the United States Federal Bureau of Investigation.

(f)

Following receipt of the required documents and fees, all new applications, or existing licenses or renewal applications containing changes to the controlling person(s), shall be submitted to the City of Glendale Police Department for investigation and criminal record review in accordance with this article. The police department, on behalf of the City of Glendale, Tax and License division, shall receive and review the criminal history record information resulting from the criminal records check set forth above, including conviction and non-conviction data, of license applicants and controlling persons for the purpose of evaluating the fitness of licensees and controlling persons in connection with the issuance, renewal, suspension or revocation of a license. Such information shall be used only for the purpose of such evaluation or for the purpose of supporting and defending a denial, non-renewal, suspension, or revocation of a license. Fitness will be evaluated in accordance with the requirements of subsection (h).

(g)

(1)

Complete renewal applications must be submitted to the City of Glendale, Tax and License division no later than October 31 of each year, prior to the expiration of a license, otherwise the license shall be deemed expired and non-renewable. If the renewal application is not received as stated above, the licensee shall submit an application for a new license and provide all information and fees required for a new license application.

(2)

Applications to change a controlling person must be submitted within thirty (30) days of that person taking ownership or control of the automated kiosk or kiosks. Failure to submit such application within 30 days of such change in a controlling person shall constitute a violation of this article and may subject the controlling person to any penalties herein.

(h)

A new or renewal license shall be issued to an applicant pursuant to this article unless:

(1)

The applicant failed to provide a completed application, any required fee, or the fingerprint records;

(2)

The applicant or a controlling person has been convicted during the ten (10) year period prior to submission of the application of a felony involving trafficking in stolen property, fraud, forgery, theft, burglary, robbery, extortion, conspiracy to defraud, any preparatory offenses of the aforementioned crimes, a felony involving fraudulent or dishonest act, or a misdemeanor involving moral turpitude;

(3)

The applicant or a controlling person is currently in violation of this article, or any applicable provision of city code.

(4)

The application contains false or misleading information; or

(5)

The applicant has a current debt related to any open or closed account maintained or formerly maintained with the City of Glendale.

(i)

A licensee will operate an automated kiosk in the City of Glendale in accordance with the following conditions. Licensee must:

(1)

Use a live representative to remotely monitor the automated kiosk during all hours of operation;

(2)

Verify a seller's identity via a valid motor vehicle operator's license, valid motor vehicle non-operating identification license, valid armed forces identification card or other valid photo identification, including the serial or identification number of such valid document sufficient to verify the information required to be reported in section 21-182 (a and b).

(3)

Secure storage of consumer electronic devices accepted by the automated kiosk and adheres to the storage and retention requirements pursuant to section 21-183;

(4)

Capture and store images during each transaction of i) the seller, ii) the identification required in section 21-181 (h)(2), and iii) the consumer electronic device;

(5)

Electronically report all transactions to law enforcement pursuant to section 21-182;

(6)

Read and record ESN, IMEI, or MEID, subject to section 21-182 (b)(7); and

(7)

Only buy consumer electronic devices.

(j)

Failure to meet any of the conditions in subsection (i) for the operation of an automated kiosk shall constitute a violation of this article.

(1)

The City of Glendale shall give written notice of a violation to the licensee or designated agent that may result in the suspension or revocation of the license. The notice shall include a description of the violation, the statutory or code reference, how the licensee can comply with the requirements, a description of the process whereby a hearing may be requested, the time limit for requesting a hearing, and a warning that failure to timely request a hearing may result in suspension or revocation of the license. The notice shall be personally served on the licensee or mailed to the licensee's last known address. Service of the notice shall be deemed complete upon mailing or personal service on the licensee.

(2)

The licensee or designated agent receiving a notice under this section may request a formal hearing pursuant to section 21-25 by serving a written request on the city manager within thirty (30) days of receiving notice of the license suspension or revocation. If the licensee fails to comply with the requirements of this article by the date provided in the notice, the City of Glendale may suspend or revoke the license as provided in this section. The hearing shall be conducted in accordance with section 21-25(b)—(d) of the City Code.

(3)

The City of Glendale may suspend a license for a period of time not to exceed three hundred sixty-five (365) calendar days if the City of Glendale determines that the licensee or the designated agent or a controlling person of the licensee has violated or is not in compliance with any provision of this article. During the suspension period, the licensee shall not transact any business through the automated kiosk(s) associated with the suspended licenses. If a fine is associated with the violation that is the basis for the suspension, the suspension may continue beyond the period set forth in this subsection until such time as the licensee pays the fine.

(4)

Nothing in this section or this article prohibits the city from approving or denying an application for a license once the suspension is concluded.

(k)

The City of Glendale may revoke a license issued pursuant to this article if the City of Glendale determines that:

(1)

A licensee or designated agent operated the business during a period of time when the license was suspended;

(2)

A licensee, designated agent or controlling person is convicted of a felony involving trafficking in stolen property, fraud, forgery, theft, burglary, robbery, extortion, conspiracy to defraud, any preparatory offenses of the aforementioned crimes, a felony involving fraudulent or dishonest act or a misdemeanor involving moral turpitude;

(3)

The licensee or designated agent has operated, or has attempted to operate an automated kiosk at a location that is unlicensed;

(4)

The City of Glendale previously issued three (3) or more notices of suspension within a six (6) month period;

(5)

The licensee or designated agent has not complied with a provision of this article or has failed to provide information as required by this article;

(6)

The application fee, license fee, reporting fee, or any transaction privilege tax has not been paid; or

(7)

The licensee fails to pay outstanding fines or resolve any violations.

(l)

It is a violation of this article for any person to provide false information on any license application.

(m)

It is a violation of this article for a person to operate an automated kiosk that either fails to meet all of the requirements in this article or when the person does not have a license issued pursuant to this article.

(n)

If a license is revoked pursuant to this section, the licensee and its controlling person(s) may not apply for a license under this article for a period of one (1) year from the date of revocation.

(Ord. No. 018-31, § 1, 5-8-18)