What's happening
This bill regulates mail-in second-hand precious metals dealers in New York, requiring registration, recordkeeping, holding periods, and new penalties.
Why it matters
Creates a new regulatory framework for “mail-in” precious metals dealers. (businesses buying gold, silver, platinum, or jewelry from consumers through the mail or internet), requiring them to register with the state—this closes a loophole that previously allowed these businesses to operate with less oversight than in-person dealers.
Mandates strict documentation and recordkeeping. Dealers must collect and verify detailed personal information (including government-issued ID and sworn statement of ownership) from sellers, and keep electronic records of all transactions, which must be reported to local law enforcement within 24 hours—potentially deterring the sale of stolen goods and aiding investigations.
Imposes a mandatory 10-day holding period. before purchased items can be resold, altered, or otherwise disposed of—giving law enforcement time to identify and recover stolen property before it leaves the dealer’s possession.
Introduces significant criminal penalties for violations. Unregistered dealers and those violating the law can be charged with a felony and barred from the business for at least one year; sellers who provide false information can also face felony charges, with harsher penalties for higher-value transactions—raising the stakes for compliance on both sides.
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Who cares
Headline styles
Register Mail-In Gold Buyers
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to consumer protection
- Referred to consumer protection
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2218
2017-2018 Regular Sessions
IN SENATE
January 12, 2017
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 Assembly, 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 internet 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.
LBD07322-01-7
S. 2218 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 dealer shall retain a record of the following:
(a) A complete and accurate description of the seller's goods, including:
(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 subdivisions two and three of this section in a form that is easily retrievable 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 maintain 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. 2218 3
its business records, inventory and business premise during normal business 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 dealer 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 succeeding the date on which it shall have become a law; provided that, effective immediately any actions necessary to implement the provisions of this act on its effective date are authorized and directed to be completed on or before such date.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
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
2015-16: S.2637 - Referred to Consumer Protection 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.
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