Requires dealers in second-hand precious metals to maintain certain records related to the purchase of such items.
TITLE OF BILL: An act to amend the general business law, in relation to the purchase of second-hand precious metals
PURPOSE OR GENERAL IDEA OF BILL: Requires dealers in second-hand precious metals to maintain certain records related to the purchase of such items.
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 sets forth definitions of the terms "dealer" and "seller," in addition to establishing requirements for those dealing with second-hand items comprised of gold, silver, or platinum. Specifically, "dealer" is defined as a person who deals in the purchase of second-hand items made of precious metals for the purpose of resale, melting, or refining and includes collateral loan brokers. "Seller" is defined as any person who sells such items made of precious metals.
Requirements set forth by section 1 include: dealers must confirm the identity of sellers of precious metals through two forms of identification; dealers must maintain a record of such items, which includes copies of the seller's forms of identification, and keep records for at least two years; dealers must retain possession of items made from precious metals for at least 72 hours. Dealers must also make records available for inspection during normal business hours.
No provision of this section prohibits or preempts any municipality from enacting a local law or ordinance which establishes a more stringent standard.
Section 2 provides the effective date of the legislation.
JUSTIFICATION: In order to better aid police departments in apprehending burglars and locating stolen merchandise, this bill would require entities such as pawn shops and second-hand dealers to document transactions involving precious metals. Such dealers would be required to hold the item for a waiting period of 72 hours.
Several states already have laws in place that attempt to prohibit the sale of stolen merchandise, especially as it relates to collateral loan brokers and pawn shops. For example, the Pawn Shop Act in Alabama requires pawnbrokers to maintain a record of transactions and make the record available to the appropriate law enforcement agency. In addition, it requires that all goods purchased by pawnbrokers, except for automobiles and other vehicles, be maintained on the premises for fifteen business days before resale. In Pennsylvania, the Precious Metals Act was enacted in 1984 and requires dealers to report jewelry sales to the district attorney's office within one business day of the sale. Shops must also wait five days before it can sell the purchased jewelry.
Communities within New York State have already recognized the need for such a bill. Some have even passed local laws and ordinances to deal with circumstances that arise from burglaries. In Buffalo, pawnshops
and others that deal in second-hand goods are required to obtain photo identification of the seller and hold goods for twenty-one days before reselling them. Legislators in the City of Albany passed an ordinance in April 2008 that mandates a ten-day waiting period before dealers and pawnbrokers may sell second-hand articles. In 2011, Albany County law enforcement officials and lawmakers proposed a similar law, in hopes of preventing burglars from selling stolen items and returning stolen goods to victims of burglaries.
This bill would establish a uniform set of requirements for the entire state of New York but does not prohibit localities from enacting more stringent regulations as they see fit to better help law enforcement agencies, burglary victims, and the general public.
PRIOR LEGISLATIVE HISTORY: 2012: S.6172 Referred to Consumer Protection
FISCAL IMPLICATIONS: None to the state.
EFFECTIVE DATE: This act shall take effect on the 60th day after it shall become law.
STATE OF NEW YORK ________________________________________________________________________ 2618--B 2013-2014 Regular Sessions IN SENATE January 23, 2013 ___________Introduced by Sen. YOUNG -- read twice and ordered printed, and when printed to be committed to the Committee on Consumer Protection -- recommitted to the Committee on Consumer Protection in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the general business law, in relation to the purchase of second-hand precious metals THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The general business law is amended by adding a new section 391-t to read as follows: S 391-T. SECOND-HAND PRECIOUS METALS; RECORDS. 1. DEFINITIONS. AS USED IN THIS SECTION: (A) "DEALER" SHALL MEAN ANY PERSON WHO, IN THE REGULAR COURSE OF BUSI- NESS, DEALS IN THE PURCHASE OF SECOND-HAND ARTICLES OR THINGS COMPRISED OF GOLD, SILVER OR PLATINUM FOR THE PURPOSE OF RESALE, MELTING OR REFIN- ING, AND SHALL INCLUDE COLLATERAL LOAN BROKERS. (B) "SELLER" SHALL MEAN ANY PERSON WHO SELLS ANY SECOND-HAND ARTICLE OR THING COMPRISED OF GOLD, SILVER OR PLATINUM. 2. NO DEALER SHALL TAKE POSSESSION OF AND PROVIDE CONSIDERATION FOR ANY SECOND-HAND ITEM COMPRISED OF GOLD, SILVER OR PLATINUM FROM A SELLER WITHOUT CONFIRMING THE IDENTITY OF SUCH SELLER UPON PRESENTATION OF TWO FORMS OF IDENTIFICATION. THE DEALER SHALL MAINTAIN A RECORD OF EACH SECOND-HAND ITEM COMPRISED OF GOLD, SILVER OR PLATINUM HE OR SHE TAKES POSSESSION OF, AND SUCH RECORD SHALL INCLUDE A COPY OF THE FORMS OF IDENTIFICATION PRESENTED BY THE SELLER AND A TELEPHONE NUMBER AND ADDRESS AT WHICH THE SELLER MAY BE CONTACTED. ALL SUCH RECORDS SHALL BE MAINTAINED BY THE DEALER FOR A PERIOD OF NOT LESS THAN TWO YEARS, AND SHALL BE MADE AVAILABLE FOR INSPECTION DURING NORMAL BUSINESS HOURS.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD07113-03-4 S. 2618--B 2
3. UPON TAKING POSSESSION OF ANY SECOND-HAND ITEM COMPRISED OF GOLD, SILVER OR PLATINUM, A DEALER SHALL RETAIN POSSESSION OF SUCH ITEM FOR A PERIOD OF NOT LESS THAN SEVENTY-TWO HOURS. 4. NO PROVISION OF THIS SECTION SHALL BE DEEMED TO PREEMPT OR PROHIBIT ANY MUNICIPALITY FROM ENACTING A LOCAL LAW OR ORDINANCE WHICH ESTAB- LISHES MORE STRINGENT STANDARDS THAN THOSE ESTABLISHED BY THIS SECTION. S 2. This act shall take effect on the sixtieth day after it shall have become a law.