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

BILL NUMBER:S2637

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, 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 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 within 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 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 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 secondhand 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 knowingly 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

2013-14: S.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 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.