Regulation of Pawnbrokers by Municipalities
In Royal City Jewellers & Loans v. New Westminster (City), 2006 BCSC 203 ("Royal City Jewellers"), the Court upheld a 1997 bylaw to regulate second hand dealers within the City of New Westminster (the "Second Hand Dealers Bylaw").

Section 59 Community Charter Applies to Pawnbrokers
The Royal City Jewellers decision is a significant decision in a number of respects. First, it confirms the application of section 59(1)(b) of the Community Charter to pawnbrokers. There has always been a slight question as to whether section 59 of the Community Charter or its predecessors were intended to apply to pawnbrokers given the existence of the Pawnbrokers Act.

The now repealed Pawnbrokers Act defined "pawnbroker" and established a set of regulations applicable to pawnbrokers, as well as identifying events which constituted offences of a pawnbroker. Municipalities were not responsible to enforce the Pawnbrokers Act; that duty fell to the Province. The Pawnbrokers Act required, among other things, that a pawnbroker keep books and documents which included information about the articles pawned and the name and address of the pawner. These records were to be made available for viewing in the pawnbroker's place of business.

A pawnbroker advances or lends money and retains goods as security for the loan; the goods may be redeemed or repurchased at a later time. Arguably, this is distinct from purchasing, taking in barter or receiving used or second hand goods. Nevertheless, many municipalities adopted bylaws that were applicable to both second hand dealers and pawnbrokers under this authority even before the Pawnbrokers Act was repealed.

Given that the Court does not question the authority of the Second Hand Dealers Bylaw to impose requirements on pawnbrokers, its judgment in the Royal City Jewellers case implies that the Court has interpreted section 59(1)(b) of the Community Charter as containing the authority to impose requirements on pawnbrokers as well as second hand dealers.