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Duluth, MN Business Licensing & Operations: Pawnbrokers (2026)

Significant Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified September 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?
Yes. Duluth Legislative Code § 36-2 makes it unlawful to exercise, carry on or engage in the pawnbroking trade within the city without a license from the city clerk, and any pawn transaction made without one is legally void.
What bond does a Duluth pawnbroker have to carry?
Section 36-5 requires every pawnbroker applicant to post a $2,000 bond from a corporation authorized to do business in Minnesota, conditioned on complying with the pawnbroker ordinance, and it runs to the benefit of the city or anyone the pawnbroker damages.
Can the city take away a pawnbroker's license?
Yes. The chief of police can suspend a license for up to 60 days or revoke it for good cause such as a related criminal conviction, recordkeeping failures or false statements to police, after giving 20 days' written notice; the licensee can demand a hearing and appeal to the city council.

Sources & Official References

Other rules in Duluth

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