senate Bill S2618

Amended

Requires dealers in second-hand precious metals to maintain certain records related to the purchase of such items

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 23 / Jan / 2013
    • REFERRED TO CONSUMER PROTECTION
  • 08 / Jan / 2014
    • REFERRED TO CONSUMER PROTECTION
  • 29 / Jan / 2014
    • AMEND AND RECOMMIT TO CONSUMER PROTECTION
  • 29 / Jan / 2014
    • PRINT NUMBER 2618A
  • 12 / Mar / 2014
    • AMEND AND RECOMMIT TO CONSUMER PROTECTION
  • 12 / Mar / 2014
    • PRINT NUMBER 2618B
  • 05 / May / 2014
    • AMEND AND RECOMMIT TO CONSUMER PROTECTION
  • 05 / May / 2014
    • PRINT NUMBER 2618C
  • 08 / May / 2014
    • AMEND AND RECOMMIT TO CONSUMER PROTECTION
  • 08 / May / 2014
    • PRINT NUMBER 2618D

Summary

Requires dealers in second-hand precious metals to maintain certain records related to the purchase of such items.

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Bill Details

Versions:
S2618
S2618A
S2618B
S2618C
S2618D
Legislative Cycle:
2013-2014
Current Committee:
Senate Consumer Protection
Law Section:
General Business Law
Laws Affected:
Add ยง391-s, Gen Bus L
Versions Introduced in 2011-2012 Legislative Cycle:
S6172

Sponsor Memo

BILL NUMBER:S2618

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 identifica-
tion; 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.

Section 2 Provides the effective date of the legislation.

JUSTIFICATION: In order to better aid police departments in apprehend-
ing burglars and locating stolen merchandise, this bill would require
entities such as pawn shops and second-hand dealers to document trans-
actions 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 automo-
biles 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 iden-

tification 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: 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.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  2618

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 23, 2013
                               ___________

Introduced  by  Sen.  YOUNG  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Consumer Protection

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-s to read as follows:
  S  391-S.  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.
  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.
  S 2. This act shall take effect on the sixtieth  day  after  it  shall
have become a law.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07113-01-3

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