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

2014: S.2618-D/A.9095-C Amend and Recommit to Consumer Protection/amend and recommit to economic development 2013: S.2618 Referred to Consumer Protection 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.