Senate Bill S2618D

2013-2014 Legislative Session

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

download bill text pdf

Archive: Last Bill Status - In Senate Committee Consumer Protection Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 08, 2014	print number 2618d
May 08, 2014	amend and recommit to consumer protection
May 05, 2014	print number 2618c
May 05, 2014	amend and recommit to consumer protection
Mar 12, 2014	print number 2618b
Mar 12, 2014	amend and recommit to consumer protection
Jan 29, 2014	print number 2618a
Jan 29, 2014	amend and recommit to consumer protection
Jan 08, 2014	referred to consumer protection
Jan 23, 2013	referred to consumer protection

Bill Amendments

Original

D (Active)

2013-S2618 - Details

See Assembly Version of this Bill:: A9095
Current Committee:: Senate Consumer Protection
Law Section:: General Business Law
Laws Affected:: Add §391-t, Gen Bus L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S6172
2015-2016: S2077
2017-2018: S447

2013-S2618 - Summary

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

2013-S2618 - 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.

2013-S2618 - Bill Text download pdf

                            
                    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

2013-S2618A - Details

See Assembly Version of this Bill:: A9095
Current Committee:: Senate Consumer Protection
Law Section:: General Business Law
Laws Affected:: Add §391-t, Gen Bus L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S6172
2015-2016: S2077
2017-2018: S447

2013-S2618A - Summary

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

2013-S2618A - Sponsor Memo

                                BILL NUMBER:S2618A       REVISED MEMO 02/21/2014

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 also allows localities to enact 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.

2013-S2618A - Bill Text download pdf

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

                                 2618--A

                       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

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.
                                                           LBD07113-02-4

S. 2618--A                          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.
  S  2.  This  act  shall take effect on the sixtieth day after it shall
have become a law.

2013-S2618B - Details

See Assembly Version of this Bill:: A9095
Current Committee:: Senate Consumer Protection
Law Section:: General Business Law
Laws Affected:: Add §391-t, Gen Bus L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S6172
2015-2016: S2077
2017-2018: S447

2013-S2618B - Summary

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

2013-S2618B - 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.

2013-S2618B - Bill Text download pdf

                            
                    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.

2013-S2618C - Details

See Assembly Version of this Bill:: A9095
Current Committee:: Senate Consumer Protection
Law Section:: General Business Law
Laws Affected:: Add §391-t, Gen Bus L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S6172
2015-2016: S2077
2017-2018: S447

2013-S2618C - Summary

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

2013-S2618C - Sponsor Memo

                                BILL NUMBER:S2618C

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", "person", and
"seller," in addition to establishing requirements for those dealing
with second-hand items comprised of gold, silver, or platinum.
Specifically, "person" is defined as an individual or business entity,
including a collateral loan broker, "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, and "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
take reasonable security measures to protect personal information
obtained and 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.

2013-S2618C - Bill Text download pdf

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

                                 2618--C

                       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  --  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)  "PERSON" SHALL MEAN AN INDIVIDUAL OR BUSINESS ENTITY, INCLUDING A
COLLATERAL LOAN BROKER AS DEFINED IN SECTION FIFTY-TWO OF THIS CHAPTER.
  (C) "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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07113-07-4

S. 2618--C                          2

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 ONLY BE MADE AVAILABLE FOR INSPECTION DURING NORMAL BUSINESS HOURS
BY  THE  ATTORNEY  GENERAL  OR HIS OR HER DESIGNEES, THE LOCAL LICENSING
AUTHORITY OR A POLICE OFFICER.
  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.

2013-S2618D (ACTIVE) - Details

See Assembly Version of this Bill:: A9095
Current Committee:: Senate Consumer Protection
Law Section:: General Business Law
Laws Affected:: Add §391-t, Gen Bus L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S6172
2015-2016: S2077
2017-2018: S447

2013-S2618D (ACTIVE) - Summary

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

2013-S2618D (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S2618D

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:  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.

2013-S2618D (ACTIVE) - Bill Text download pdf

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

                                 2618--D

                       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  --  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) "PERSON" SHALL MEAN AN INDIVIDUAL OR BUSINESS ENTITY, INCLUDING  A
COLLATERAL LOAN BROKER AS DEFINED IN SECTION FIFTY-TWO OF THIS CHAPTER.
  (C)  "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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07113-09-4

S. 2618--D                          2

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. EACH DEALER  SHALL  INSTI-
TUTE  REASONABLE MEASURES TO KEEP SUCH RECORDS SECURE.  ALL SUCH RECORDS
SHALL BE MAINTAINED BY THE DEALER FOR A PERIOD  OF  NOT  LESS  THAN  TWO
YEARS,  AND  SHALL  ONLY  BE MADE AVAILABLE FOR INSPECTION DURING NORMAL
BUSINESS HOURS BY THE ATTORNEY GENERAL OR  HIS  OR  HER  DESIGNEES,  THE
LOCAL LICENSING AUTHORITY OR A POLICE OFFICER.
  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.  THE GOVERNING BODY OF THE
CITY, TOWN OR VILLAGE IN WHICH THE DEALER IS LOCATED MAY ESTABLISH FINES
AND PENALTIES OF NOT LESS THAN TWENTY-FIVE DOLLARS  NOR  MORE  THAN  ONE
HUNDRED  DOLLARS  FOR  VIOLATIONS OF THE PROVISIONS OF THIS SUBDIVISION.
SUCH CITY, TOWN OR VILLAGE SHALL HAVE FULL POWER AND AUTHORITY, AFTER  A
HEARING, TO IMPOSE SUCH FINES AND PENALTIES UPON A FINDING THAT A DEALER
VIOLATED THIS SUBDIVISION.
  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.
EVERY  DEALER  SHALL COMPLY WITH ALL LOCAL LAWS AND ORDINANCES GOVERNING
SUCH DEALERS AND THE PROVISIONS OF THIS SECTION SHALL  BE  ENFORCED  AND
VIOLATIONS THEREOF ADJUDICATED BY THE CITY, TOWN OR VILLAGE IN WHICH THE
DEALER CONDUCTS BUSINESS.
  S  2.  This  act  shall take effect on the sixtieth day after it shall
have become a law.

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Catharine Young

Archive: Last Bill Status - In Senate Committee Consumer Protection Committee

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