BILL NUMBER:S2077

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
make records available for inspection during normal business hours by
the attorney general or his or her designees, local licensing
authorities, or a police officer; the governing body of the city,
town, or village in which dealer is located may establish fines
between twenty five and one hundred dollars for violations of these
provisions.

Subdivision 4 provides that dealers shall comply with all local laws
and ordinances governing such dealers and that the provisions of this
legislation are to be enforced by the city, town, or village in which
the dealer conducts business.

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. Additionally, 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 allow for the entire state of New York to be
consistent in its regulation of precious metals dealers and would
benefit law enforcement agencies, burglary victims, and the general
public at large.

PRIOR LEGISLATIVE HISTORY:

2014: S.2618-D/A.9095-C Amend and Recommit to Consumer
Protection/amend and recommit to economic development
2013: S.2618 Referred to Consumer Protection
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.