Duluth, MN Business Licensing & Operations: Pawnbrokers (2026)
Key Facts
- License issuer
- City clerk, per premises
- Bond required
- $2,000 corporate surety bond
- License term
- Expires April 30 annually
- Record retention
- 3 years, per transaction
- Suspension authority
- Chief of police, up to 60 days
Summary
In the City of Duluth, no one may operate as a pawnbroker without a license from the city clerk under Duluth Legislative Code § 36-2, and a pawn transaction made without one is void. Licensees must post a $2,000 corporate surety bond under § 36-5 and meet the eligibility standards in Minnesota Statutes § 325J.03(a).
No person shall exercise, carry on, or be engaged in the trade or business of a pawnbroker or act as a pawnbroker within the city unless the person is currently licensed pursuant to the provisions of this Article. A pawn transaction made without the benefit of a license is void. Such license shall authorize the licensee to engage in the pawnbroking business at the premises named on the license. Each premises shall require a separate license. No person shall be eligible for a license unless such person meets the eligibility standards set forth in Minnesota Statutes Section 325J.03(a) or its successor. ... Every applicant for a license under this Chapter shall accompany his application with a bond in the sum of $2,000, executed by a corporation authorized to do business in this state and conditioned that in conducting such business, the licensee will, in all things, observe the conditions and provisions of this Chapter.
Full Breakdown
Section 36-2 requires anyone exercising, carrying on or engaging in the pawnbroking trade in Duluth to hold a license issued for each separate premises; the license is nontransferable, and any change in ownership of a licensed pawnbroking business must be reported to the city clerk and requires a new license. Applicants must accompany their application with a license fee set under § 31-6(a) and, per § 36-5, a $2,000 bond from a corporation authorized to do business in Minnesota, running to the benefit of the city or anyone harmed by the pawnbroker's conduct.
Licenses expire April 30 each year regardless of issue date, with prorated fees for partial-year licenses. Licensees must keep detailed transaction records, including item descriptions, loan amounts, maturity dates and interest, the seller's identification and signature, and hold pawned items for at least 60 days before they can be sold or disposed of, all reported daily to the Duluth Police Department's chief of police. The chief of police may suspend a license for up to 60 days or revoke it for good cause, defined to include criminal convictions tied to the business, recordkeeping failures, false statements to police, or failing to comply with a police hold order, after 20 days' written notice and an opportunity for a hearing.
Violations & Fines
The chief of police can suspend a pawnbroker's license for up to 60 days or revoke it outright for good cause, including recordkeeping violations, false statements to police or failing to honor a police hold order; a licensee has ten days to demand a hearing and can appeal an adverse decision to the city council.
Frequently Asked Questions
Do I need a city license to run a pawnshop in Duluth?
What bond does a Duluth pawnbroker have to carry?
Can the city take away a pawnbroker's license?
Sources & Official References
Other rules in Duluth
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