senate Bill S2618B

Amended

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

download pdf

Sponsor

Bill Status


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

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.

do you support this bill?

Bill Details

See Assembly Version of this Bill:
A9095A
Versions:
S2618
S2618A
S2618B
S2618C
S2618D
Legislative Cycle:
2013-2014
Current Committee:
Senate Consumer Protection
Law Section:
General Business Law
Laws Affected:
Add ยง391-t, Gen Bus L
Versions Introduced in 2011-2012 Legislative Cycle:
S6172

Sponsor Memo

BILL NUMBER:S2618B

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.

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

                                 2618--B

                       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  --
  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.

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.