Gainesville City Council approved the first reading of an ordinance that would require local pawnshops to keep an electronic database of merchandise and sellers despite the voiced concerns of two business owners and a citizen.

The council, which met Tuesday night, had previously looked into the ordinance at a work session on Thursday.

The ordinance amends Title 6 of the city code, laying down rules on licensing of the businesses, permitting of their employees and establishing an electronic database to track transactions.

Gainesville Police Chief Brian Kelly told the council it would help authorities track down stolen items.

“This is going to allow us to speed up investigations,” he said, adding that investigators currently have to look at handwritten reports instead of searching an electronic database.

Under state law, pawnshops are required to keep a permanent record book, documenting each transaction by date, including the name, age, address, driver’s license or Social Security number of the seller along with a description of the item and its serial number if available.

A copy of those records is then given to law enforcement. However, it does not have to be kept electronically.

William Lapointe, owner of Lanier Jewelry and Loan, told the council he is “strongly in favor” of an electronic database, but the cost of the system would eat into his business since state law prohibits pawnshops from passing on charges to their customers.

Pawnshops, depending on which database the city goes with, would be charged a transaction fee to upload the information into the database.

Kelly said the cost would be 20 cents per transaction, and the original intention of the ordinance had been to pass that cost onto customers until further research uncovered the state laws prohibiting that action.

Lapointe also took issue with the required background checks and rules on employees. The ordinance requires employees to get a permit, which must be renewed annually and costs $50, to work at a pawnshop.

Lapointe said potential employees would be driven away by the idea of having to pay to get a permit to work.

The ordinance also prohibits those who have been convicted or pleaded guilty or no contest to felony theft, burglary, robbery or fraud.

Susan Collins, a lifelong resident of Gainesville, told the council she felt the ordinance would only affect law-abiding citizens.

“Times are hard right now,” the former business owner said. “Enforce laws there now instead of making new ones.”

Jon Lipscomb raised a concern about the definition of secondhand dealers. The owner of Foxhole Gun and Archery said 30 percent of his business is from preowned items, and he expressed concerns that his business would be included under the ordinance’s wording.

Kelly clarified in his presentation that the definition uses secondhand dealers to refer to a pawnbroker who sells items after they are no longer on pawn, and would not affect businesses such as Lipscomb’s.

The council also passed an ordinance amending Title 6 to allow Brenau University and the Georgia Mountains Center to have functions with alcoholic beverages. George Wangemann was the only council member opposed to the ordinance.

Lee Johnson contributed to this report.