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

Summary of specific provision

The People of the State of New York, represented in Senate and Assembly, do enact as follows: "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. "Transactions" means any event relating to the sale and purchase of second-hand precious metals or jewelry by mail-in second-hand precious metals dealer. 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 metal dealers. § 222: Registration, transactions and recordkeeping: 1. No mail-in second-hand precious metal dealer shall conduct business unless it is registered with the department pursuant to this article. 2. No mail-in second-hand metals dealer shall remit payment to a seller unless seller has provided such dealer with: (a) the seller's name, address, telephone 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 be the seller is true and accu- rate, 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 dealer shall retain a record of the following: § 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 form a seller within ten calendar days of the sate of payment for goods. 5 226; 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 prohib- ited from acting as a mail-in second-hand precious metals dealer for not less than one year. 2. Any seller who knowingly provides false informa- tion 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 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 regu- lations 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 registra- tion, seller identification, sale criteria, and applicable penalties to ensure that sellers and dealers of mail-in second-hand precious metals do not knowingly jeopardized any property rights. Such provisions potentially allow for a better recovery of stolen property and identifi- cation of suspects by law enforcement agencies.

Prior legislation history

This is a new bill.

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 immediately 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.