NY State Senate Bill 2019-S4295

Senate Bill S4295

2019-2020 Legislative Session

Requires the registration of mail-in second-hand precious metals dealers with the department of state, regulates the conduct of the business thereof

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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2020	referred to consumer protection
Mar 06, 2019	referred to consumer protection

2019-S4295 (ACTIVE) - Details

Current Committee:: Senate Consumer Protection
Law Section:: General Business Law
Laws Affected:: Add Art 12-C §§220 - 227, Gen Bus L
Versions Introduced in Other Legislative Sessions:: 2009-2010: S7032
2011-2012: S1097
2013-2014: S2632
2015-2016: S2637
2017-2018: S2218
2021-2022: S4758
2023-2024: S5689

2019-S4295 (ACTIVE) - Summary

Requires the registration of mail-in second-hand precious metals dealers with the department of state and regulates the conduct of the business thereof.

2019-S4295 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S4295

SPONSOR: PARKER
 
TITLE OF BILL:  An act to amend the general business law, in relation
to mail-in second-hand precious metals dealers

 
PURPOSE:

The purpose of this bill is to require the registration of mail-in
second-hand precious metals dealers with the department of state, and
regulate the conduct of the business thereof.

 
SUMMARY: OF SPECIFIC PROVISION:

Section 220: definitions.

Section 221: application of the article.

Section 222: provides that no mail-in second-hand precious metal dealer
shall conduct business unless it is registered with the department of
state. No mail-in second-hand metals dealer shall remit payment to a

seller unless seller has provided: (a) the seller's name, address, tele-
phone number and electronic mail address, if available; (b) the seller's
drivers license number and issuing state, or any other government issued
identification number; and (c) a sworn statement made by the seller that
the driver's license number or other government issued identification
number provided by the seller is true and accurate, and that the seller
is the true and lawful owner of the goods sold.

Section 223: Methods to tender payment shall be by check or money order.
Section 224: Every dealer shall allow law enforcement to inspect the
premises.

Section 225: provides that the dealer shall not sell, barter, exchange,
alter, adulterate, use or in any manner dispose of goods purchased with-
in 10 days for the date of payment for such goods.

Section 226: provides for penalties to any person acting as a mail-in
second-hand precious metals dealer who is not registered as such with
the department or any mail-in second-hand precious metals dealer which
violates any provision of this article shall be guilty of a class E
felony and shall be prohibited from acting as a Mail-in second-hand
precious metals dealer for not less than one year. Any seller who know-
ingly provides false information to a mail-in secondhand precious metals
dealer and receives payment from such dealer shall be guilty of a: (a)
class E felony if the payment is less than three hundred dollars; and
(b) class A felony if the payment received is three hundred dollars or
more.

Section 227: The department shall promulgate any rules and regulations
necessary to implement the provisions of this article.

 
JUSTIFICATION:

In efforts to decrease such instances as property theft, provisions
should be made to control and regulate the purchase of mail-in second-
hand precious metals. This includes proper business registration, seller
identification, sale criteria, and applicable penalties to ensure that
sellers and dealers of mail-in second-hand precious metals do not know-
ingly jeopardize any property rights. Such provisions potentially allow
for a better recovery of stolen property and identification of suspects
by law enforcement agencies.

 
PRIOR LEGISLATIVE HISTORY:

2017-2018: 5.2218 - REFERRED TO CONSUMER PROTECTION
2015-16: S.2637 - Referred to Consumer Protection
2013-14: 5.2632/A.3645 -Referred to Consumer Protection
2011-12: S.1097/A.4122 -Referred to Consumer Protection/Reported to
Codes
2009-10: S.7032/A.10004- Referred to Codes/Economic Development

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect the first of January next succeeding the date
on which it shall have become a law, provided that, effective immediate-
ly any actions necessary to implement the provision of this act on its
effective date are authorized and directed to be completed on or before
such date.

2019-S4295 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4295
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               March 6, 2019
                                ___________
 
 Introduced  by  Sen.  PARKER -- 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  mail-in
   second-hand precious metals dealers
 
   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 article
 12-C to read as follows:
                               ARTICLE 12-C
                       MAIL-IN SECOND-HAND PRECIOUS
                              METALS DEALERS
 SECTION 220. DEFINITIONS.
         221. APPLICATION OF ARTICLE.
         222. REGISTRATION, TRANSACTION AND RECORDKEEPING.
         223. TENDERING PAYMENT.
         224. INSPECTION OF RECORDS AND PREMISES.
         225. HOLDING PERIOD.
         226. PENALTIES.
         227. POWERS OF THE DEPARTMENT.
   § 220. DEFINITIONS. AS USED IN THIS ARTICLE:
   1. "DEPARTMENT" MEANS THE DEPARTMENT OF STATE.
   2. "JEWELRY" MEANS A PERSONAL ORNAMENT THAT CONTAINS A PRECIOUS  METAL
 AND MAY CONTAIN A GEMSTONE OR GEMSTONES.
   3.  "MAIL-IN  SECOND-HAND  PRECIOUS METALS DEALER" MEANS ANY PERSON OR
 ENTITY THAT:
   (A) CONDUCTS BUSINESS WITHIN THIS STATE,  THAT  CONTRACTS  WITH  OTHER
 PERSONS  OR ENTITIES TO BUY PRECIOUS METALS OR JEWELRY THROUGH AN INTER-
 NET WEBSITE, THE UNITED STATES MAIL OR TELEMARKETING; OR
   (B) CONDUCTS BUSINESS WITHIN THIS STATE, THAT REGULARLY ENGAGES IN THE
 BUSINESS OF PURCHASING JEWELRY OR PRECIOUS  METALS  THROUGH  THE  UNITED
 STATES MAIL OR INTERNET BASED TRANSACTIONS.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD10270-01-9

 S. 4295                             2
 
   4.  "PRECIOUS  METAL"  MEANS  ANY  ITEM CONTAINING ANY GOLD, SILVER OR
 PLATINUM, OR ANY COMBINATION THEREOF.
   5.  "SELLER"  MEANS  ANY  PERSON OR ENTITY OFFERING PRECIOUS METALS OR
 JEWELRY FOR SALE, WHICH BELONG SOLELY TO SUCH PERSON OR ENTITY AND WHICH
 HAS ABSOLUTE AUTHORITY TO SELL SUCH GOODS.
   6. "TRANSACTION" MEANS ANY EVENT RELATING TO THE SALE AND PURCHASE  OF
 SECOND-HAND PRECIOUS METALS OR JEWELRY BY A MAIL-IN SECOND-HAND PRECIOUS
 METALS DEALER.
   § 221. APPLICATION OF ARTICLE. THIS ARTICLE SHALL NOT APPLY TO:
   1.  ANY  PERSON  OR ENTITY THAT IS AVAILABLE TO THE PUBLIC FOR WALK-IN
 SALES; OR
   2. THE PURCHASE, CONSIGNMENT OR TRADE OF SECOND-HAND  PRECIOUS  METALS
 OR JEWELRY BETWEEN SECOND-HAND PRECIOUS METALS DEALERS.
   §  222.  REGISTRATION,  TRANSACTION  AND  RECORDKEEPING. 1. NO MAIL-IN
 SECOND-HAND PRECIOUS METALS DEALER SHALL CONDUCT BUSINESS UNLESS  IT  IS
 REGISTERED WITH THE DEPARTMENT PURSUANT TO THIS ARTICLE.
   2.  NO  MAIL-IN SECOND-HAND PRECIOUS METALS DEALER SHALL REMIT PAYMENT
 TO A SELLER UNLESS THE SELLER HAS PROVIDED SUCH DEALER WITH:
   (A) THE SELLER'S NAME, ADDRESS, TELEPHONE NUMBER AND  ELECTRONIC  MAIL
 ADDRESS, IF AVAILABLE;
   (B)  THE  SELLER'S  DRIVER'S  LICENSE NUMBER AND ISSUING STATE, OR ANY
 OTHER GOVERNMENT ISSUED IDENTIFICATION NUMBER; AND
   (C) A SWORN STATEMENT MADE BY THE SELLER  THAT  THE  DRIVER'S  LICENSE
 NUMBER  OR OTHER GOVERNMENT ISSUED IDENTIFICATION NUMBER PROVIDED BY THE
 SELLER IS TRUE AND ACCURATE, AND THAT THE SELLER IS THE TRUE AND  LAWFUL
 OWNER  OF  THE  GOODS  SOLD.  SUCH STATEMENT SHALL INCLUDE THE FOLLOWING
 LANGUAGE: "I DECLARE UNDER THE PENALTY OF PERJURY THAT THE FOREGOING  IS
 TRUE AND ACCURATE."
    3. FOR EVERY TRANSACTION, A MAIL-IN SECOND-HAND PRECIOUS METALS DEAL-
 ER SHALL RETAIN A RECORD OF THE FOLLOWING:
   (A) A COMPLETE AND ACCURATE DESCRIPTION OF THE SELLER'S GOODS, INCLUD-
 ING:
   (I) PRECIOUS METAL TYPE OR, IF JEWELRY, THE TYPE OF JEWELRY, AND
   (II) ANY OTHER UNIQUE IDENTIFYING MARKS, NUMBERS OR LETTERS.
   SUCH  DESCRIPTION  SHALL  BE  IN SUCH AN ELECTRONIC FORMAT AS SHALL BE
 DETERMINED BY THE SECRETARY OF STATE; AND
   (B) THE DATE THAT THE SELLER'S GOODS  WERE  RECEIVED  BY  THE  MAIL-IN
 SECOND-HAND PRECIOUS METALS DEALER.
   THE INFORMATION REQUIRED BY THIS SUBDIVISION SHALL BE TRANSMITTED TO A
 LAW  ENFORCEMENT  AGENCY  HAVING  JURISDICTION IN THE MUNICIPALITY WHERE
 SUCH DEALER IS SITUATE WITHIN TWENTY-FOUR HOURS AFTER ENTERING INTO  THE
 TRANSACTION.
   4.  EVERY  MAIL-IN  SECOND-HAND PRECIOUS METALS DEALER SHALL MAINTAIN,
 FOR NOT LESS THAN TWO YEARS, ALL INFORMATION RECEIVED PURSUANT TO SUBDI-
 VISIONS TWO AND THREE OF THIS SECTION IN A FORM THAT IS EASILY RETRIEVA-
 BLE UPON THE REQUEST OF ANY LAW ENFORCEMENT AGENCY.
   5. UPON REQUEST FROM A LAW ENFORCEMENT AGENCY, A  MAIL-IN  SECOND-HAND
 PRECIOUS METALS DEALER SHALL PROVIDE SUCH AGENCY WITH AN ELECTRONIC COPY
 OF  ALL  INFORMATION ON ANY SELLER THAT SUCH DEALER IS REQUIRED TO MAIN-
 TAIN PURSUANT TO SUBDIVISIONS TWO AND THREE OF THIS SECTION.
   § 223. TENDERING PAYMENT.  EVERY  PAYMENT  BY  A  MAIL-IN  SECOND-HAND
 PRECIOUS METALS DEALER RESULTING FROM THE SALE, PURCHASE, CONSIGNMENT OR
 TRADE  OF  PRECIOUS  METALS  OR JEWELRY SHALL BE MADE TO THE SELLER BY A
 CHECK OR MONEY ORDER.
   § 224. INSPECTION OF RECORDS AND PREMISES. EVERY  MAIL-IN  SECOND-HAND
 PRECIOUS  METALS  DEALER SHALL ALLOW A LAW ENFORCEMENT AGENCY TO INSPECT

 S. 4295                             3

 ITS BUSINESS RECORDS, INVENTORY AND BUSINESS PREMISE DURING NORMAL BUSI-
 NESS HOURS.
   §  225.  HOLDING PERIOD. NO MAIL-IN SECOND-HAND PRECIOUS METALS DEALER
 SHALL SELL, BARTER, EXCHANGE, ALTER, ADULTERATE, USE OR  IN  ANY  MANNER
 DISPOSE OF GOODS PURCHASED FROM A SELLER WITHIN TEN CALENDAR DAYS OF THE
 DATE OF PAYMENT FOR SUCH GOODS.
   §  226.  PENALTIES.  1.  ANY  PERSON  ACTING  AS A MAIL-IN SECOND-HAND
 PRECIOUS METALS DEALER WHO IS NOT REGISTERED AS SUCH WITH THE DEPARTMENT
 OR ANY MAIL-IN, SECOND-HAND PRECIOUS METALS DEALER   WHICH VIOLATES  ANY
 PROVISION  OF THIS ARTICLE SHALL BE GUILTY OF A CLASS E FELONY AND SHALL
 BE PROHIBITED FROM ACTING AS A MAIL-IN SECOND-HAND PRECIOUS METALS DEAL-
 ER FOR NOT LESS THAN ONE YEAR.
   2. ANY SELLER WHO KNOWINGLY PROVIDES FALSE INFORMATION  TO  A  MAIL-IN
 SECOND-HAND PRECIOUS METALS DEALER AND RECEIVES PAYMENT FROM SUCH DEALER
 SHALL BE GUILTY OF A:
   (A)  CLASS E FELONY IF THE PAYMENT RECEIVED IS LESS THAN THREE HUNDRED
 DOLLARS; AND
   (B) CLASS D FELONY IF THE PAYMENT RECEIVED IS THREE HUNDRED DOLLARS OR
 MORE.
   § 227. POWERS OF THE DEPARTMENT. THE DEPARTMENT SHALL  PROMULGATE  ANY
 RULES  AND  REGULATIONS  NECESSARY  TO  IMPLEMENT THE PROVISIONS OF THIS
 ARTICLE.
   § 2. This act shall take effect on the first of January next  succeed-
 ing  the date on which it shall have become a law. Effective immediately
 any actions necessary to implement the provisions of  this  act  on  its
 effective date are authorized to be completed on or before such date.

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