What's happening
This bill requires second-hand dealers and pawnbrokers to keep detailed electronic records of transactions and report them to the Secretary of State.
Why it matters
Substantially increases oversight and traceability of second-hand goods. by requiring detailed records for each transaction, including personal information, digital photographs, and identification data for both sellers and buyers, which could help law enforcement track stolen goods and deter theft-related crimes.
Mandates use of specific electronic equipment and technology. (computers, cameras, signature pads, internet access) for compliance, potentially modernizing the industry but also imposing costs and technical requirements on small businesses.
Expands access to transaction records for multiple authorities. , including police, the Secretary of State, and criminal court judges, which could improve investigations but also raises privacy and data security concerns for individuals who buy, sell, or pawn items.
Establishes significant penalties and enforcement mechanisms. (fines, possible imprisonment, civil penalties, and injunctions by the Attorney General) for non-compliance, signaling a strong focus on accountability and deterrence within the second-hand and pawnbroking sectors.
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Who cares
Headline styles
Require Dealers Keep Digital Records
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
5 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
554
2025-2026 Regular Sessions
IN SENATE (Prefiled)
January 8, 2025
Introduced by Sen. LIU -- 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 recordkeeping requirements for second-hand dealers and pawnbrokers
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 5-B to read as follows:
ARTICLE 5-B
RECORDKEEPING REQUIREMENTS FOR SECOND-HAND DEALERS
AND PAWNBROKERS Section 57. Reports to the secretary of state.
57-a. Record of purchases and sales.
57-b. Electronic reporting to the secretary of state.
57-c. Penalties.
§ 57. Reports to the secretary of state. Every dealer in second-hand articles who deals in the purchase or sale of any second-hand manufactured article comprised wholly or in part of gold, silver, platinum, or other precious metals, or deals in the purchase or sale of any old gold, silver, platinum or other precious metals, or deals in the purchase of articles or things comprised of gold, silver, platinum or other precious metals for the purpose of melting or refining, or deals in the purchase or sale of used electrical appliances excluding kitchen appliances, or deals in the purchase or sale of any used electronic equipment, computers or component parts of electronic equipment or computers, shall make available to the secretary of state the records required to be kept pursuant to subdivisions one and two of section fifty-seven-a of this article with respect to such transactions in a manner specified by the secretary of state for the New York state department of state by rule and regulation, which may include the real-time sharing or accessing of
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02432-01-5
such records in an electronic format and/or through use of an internet website designated by the secretary of state.
§ 57-a. Record of purchases and sales. 1. Every dealer in second-hand articles who deals in the purchase or sale of any second-hand manufactured article composed wholly or in part of gold, silver, platinum, or other precious metals, or deals in the purchase or sale of any old gold, silver, platinum or other precious metals, or deals in the purchase of articles or things comprised of gold, silver, platinum or other precious metals for the purpose of melting or refining, or deals in the purchase or sale of used electrical appliances excluding kitchen appliances, or deals in the purchase or sale of any used electronic equipment, computers or component parts of electronic equipment or computers, shall with respect to such transactions create an electronic record in English, in a manner to be specified by the secretary of state for the New York state department of state by rule or regulation. Such electronic record may include the real-time sharing or accessing of such records in an electronic format and/or through use of an internet website designated by the secretary of state for the New York state department of state. Such electronic record shall be retained for a minimum period of six years from the date of purchase or sale. Such electronic record may, in the discretion of the secretary of state and in furtherance of the purposes of this article and any other applicable law or rules regulating the activities of dealers in second-hand articles, include but shall not be limited to the following information, provided in a format or in accordance with specifications as provided by rule or regulation of the secretary of state:
a. The date, time, location and type of transaction;
b. The name of the individual conducting the transaction for the dealer;
c. Identifying information regarding the person who is present to offer property purchased by the dealer, including name, address, phone number, type of identification utilized, identification number, expiration date of identification, date of birth, sex, height, weight, eye color, hair color, race or ethnicity, distinguishing marks, digital photograph of owner, and digital photograph or scanned copy of identification utilized;
d. Identifying information regarding the person who is present to purchase property sold by the dealer, including name, address, phone number, and physical description as apparent, including sex, age, height, weight, eye color, hair color, race or ethnicity, and distinguishing marks; and
e. An accurate description of each article purchased or sold, including type of article, manufacturer, make, model number, serial number, international mobile equipment identifier, electronic serial number, mobile equipment identifier, inscriptions or distinguishing marks, and one or more digital photographs reasonably capturing the likeness of the article.
2. Every dealer in second-hand articles who deals in the purchase or sale of pawnbroker tickets or other evidence of pledged articles or the redemption or sale of pledged articles and who is not subject to the provisions of section fifty-seven-b of this article shall, in addition to recording information pursuant to subdivision one of this section, create an electronic record of the following information at the time of such purchase, sale or redemption in a manner to be specified by the secretary of state for the New York state department of state by rule or regulation, which may include the real-time sharing or accessing of such records in an electronic format and/or through use of an internet website designated by the secretary of state. Such electronic record shall be retained for a minimum period of six years from the date of purchase or sale. Such electronic record may, in the discretion of the secretary and in furtherance of the purposes of this article and any other applicable law or rules regulating the activities of dealers in second-hand articles and pawnbrokers, include but shall not be limited to the following information, provided in a format or in accordance with specifications as provided by rule of the secretary of state:
a. The name and address of the person who issued such ticket or other evidence;
b. The pledge number of such pawn ticket or other evidence;
c. The name and address of the pledgor as it appears upon such pawn ticket or other evidence;
d. The amount loaned or advanced as it appears on such pawn ticket or other evidence;
e. The sum paid or received for such pawn ticket or other evidence, or the sum paid or received for the redeemed article or pledge; and
f. Such description of a pledged article as appears on such pawn ticket or other evidence and an accurate description of every redeemed pledged article, including type of article, manufacturer, make, model number, serial number, international mobile equipment identifier, electronic serial number, mobile equipment identifier, inscriptions or distinguishing marks, and one or more digital photographs reasonably capturing the likeness of the article.
3. A dealer in second-hand articles subject to the provisions of this subdivision and subdivision one of this section shall acquire and maintain in good working order the electronic equipment necessary to create and maintain the electronic records required by this section, including but not limited to a computer with internet connection, an electronic signature pad and a digital camera utilizing a file format designated by the secretary of state.
4. The books and records required by this section, including any electronic records required by this subdivision and subdivision one of this section, shall be open to the inspection of any police officer, the secretary of state for the New York state department of state or any departmental inspector, any judge of the criminal court, or any person duly authorized in writing for such purposes by the secretary of state or by any judge of the criminal court, who shall exhibit such written authority to the dealer. Such records shall also be open to the inspection of any official or other person identified in, or duly authorized in writing pursuant to, any other applicable state or local law.
5. Nothing in this section shall be construed to affect or supersede any recordkeeping requirement imposed by or pursuant to any other applicable state or local law.
§ 57-b. Electronic reporting to the secretary of state. 1. Every pawnbroker, shall make available to the secretary of state for the New York state department of state the records required to be kept pursuant to subdivision two of this section, in a manner to be specified by the secretary of state by rule or regulation, which may include the realtime sharing or accessing of such records in an electronic format and/or through use of an internet website designated by the secretary of state for the New York state department of state.
2. Every pawnbroker shall create at the time of transaction an electronic record in English, in a manner to be specified by the secretary of state by rule or regulation, which may include the use of an internet website designated by the secretary of state, of every transaction in which goods, articles or things, or any part thereof, are pawned, pledged or redeemed in the course of business of such pawnbroker. Such electronic record shall be retained for a minimum period of six years from the date of the transaction. Such electronic record may, in the discretion of the secretary of state and in furtherance of the purposes of this article and any other applicable law or rules regulating the activities of pawnbrokers, include but shall not be limited to the following information, provided in a format or in accordance with specifications as provided by rule or regulation of the secretary of state:
a. The date, time, location and type of transaction;
b. The name of the individual conducting the transaction for the pawnbroker;
c. Identifying information regarding the pledgor, including name, address, phone number, type of identification utilized, identification number, expiration date of identification, date of birth, sex, height, weight, eye color, hair color, race or ethnicity, distinguishing marks, digital photograph of owner, digital photograph or scanned copy of identification utilized, and whether the pledgor is the owner, consignee or agent of the owner;
d. An accurate description of each article pawned or pledged, including type of article, manufacturer, make, model number, serial number, international mobile equipment identifier, electronic serial number, mobile equipment identifier, inscriptions or distinguishing marks, and one or more digital photographs reasonably capturing the likeness of the article;
e. The pledge number of the pawn ticket;
f. The amount loaned or advanced thereon and the rate of interest to be paid on such loan or advance;
g. Identifying information regarding the person redeeming the article pawned or pledged, including name, address, phone number, type of identification utilized, identification number, expiration date of identification, date of birth, sex, height, weight, eye color, hair color, race or ethnicity, distinguishing marks, digital photograph of owner, and digital photograph or scanned copy of identification utilized; and
h. An accurate description of each article purchased or sold, including type of article, manufacturer, make, model number, serial number, international mobile equipment identifier, electronic serial number, mobile equipment identifier, inscriptions or distinguishing marks, and one or more digital photographs reasonably capturing the likeness of the article.
Notwithstanding any inconsistent provision of this subdivision, such electronic record shall in any event contain the information specified in section forty-three of this chapter.
3. The pawnbroker shall acquire and maintain in good working order the electronic equipment necessary to create and maintain the electronic records required by this section, including but not limited to a computer with internet connection, an electronic signature pad and a digital camera utilizing a file format designated by the secretary of state.
4. The electronic records required by this section shall be open to the inspection of the state attorney general, the state comptroller, any police officer, the secretary of state, any departmental inspector, any judge of the criminal court, any person duly authorized in writing for such purposes by the secretary of state or by any judge of the criminal court, who shall exhibit such written authority to the pawnbroker or any other governmental officer or employee authorized by state or local law. Such records shall also be open to the inspection of any official or other person identified in, or duly authorized in writing pursuant to section forty-five of this chapter or any other applicable state or local law.
5. Nothing in this section shall be construed to affect or supersede any recordkeeping requirement imposed by or pursuant to any other applicable state or local law.
6. In addition to any other applicable penalty or sanction, any person who violates any of the provisions of this section or rules promulgated thereunder shall be subject to the penalties set forth in section fifty-seven-c of this article.
§ 57-c. Penalties. 1. Except as otherwise specifically provided any person who violates any provision of this article or any regulation or rule promulgated under it shall, upon conviction thereof, be punished for each violation by a fine of not less than twenty-five dollars nor more than five hundred dollars, or by imprisonment not exceeding fifteen days, or both; and any such person shall be subject also to a civil penalty in the sum of one hundred dollars for each violation, to be recovered in a civil action.
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 recordkeeping requirements for second-hand dealers and pawnbrokers
Purpose or general idea of bill
An act to amend the general business law, in relation to the establish- ment of an online system for inventorying the goods offered for sale at pawnshops and secondhand goods shops in the State of New York to hasten the return of stolen property.
Summary of specific provisions
Section 1: Adds a new article 5-B to the General Business Law.
Read the full memo (1,199 words)
Section 57: Requires dealers of second-hand articles who deal in the purchase or sale of precious metals, used electrical appliances, or electronic equipment to make available the records required by the law to the secretary of state.
Section 57-a: 57-a(I) and (2): Requires dealers of second-hand articles who deal in the purchase or sale of precious metals, used electrical appliances, or electronic equipment to electronically record the previ- ously mentioned information as specified by the
Secretary of State by rule or regulation. The electronic record may include the real-time sharing of records through the use of an Internet website designated by the secretary of state. The electronic record shall be kept for at least six years from the date of purchase or sale. The electronic record may include the date, time, location, and type of transaction; the name of the individual conducting the transaction for the dealer; identifying information of the person offering the property purchased by the dealer, including a digital photograph of the owner and digital photograph or scanned copy of identification used; identifying information of the person purchasing property sold by the dealer; and an accurate description of each article purchased or sold and one or more digital photographs reasonably capturing the likeness of the article.
57-a(2): the dealer of second-hand articles who deals in the purchase or sale of pawnbroker tickets shall also create an electronic record, for which the Secretary of State shall also promulgate rules or regu- lations'. These records must be maintained for at least 6 years from the date of purchase or sale. Additionally, the record must include the name and address of the person who issued the ticket; the pledge number of the pawn ticket; the name and address of the pledgor; the amount loaned or advanced as it appears on the ticket; the sum paid or received for the pawn ticket or for the redeemed article; a description of the arti- cle as appears on the ticket, and pictures of the article;
57-a(3):The dealers also shall be required to keep and maintain in good working order the electronic equipment necessary to create and maintain the electronic records required by this section, including an internet connection, electronic signature pad, and digital camera.
57-a(4): The books and records shall be open to inspection by a police officer, Secretary of State, any departmental inspector or Judge, and any person authorized by the Secretary of State or Judge.
57-a(5): Nothing in this section shall be construed to affect or super- sede any recordkeeping requirement imposed by or pursuant to any other applicable state or local law.
57-b: Every pawnbroker shall create an electronic record, to be kept for at least 6 years, which shall include the date, time, and place of tran- saction; the name of the individual conducting the transaction for the pawnbroker; identifying information of the pledgor; an accurate description of each article pawned or pledged; the pledge number of the pawn ticket; the amount loaned and the rate of interest to be paid; identifying information of the person redeeming the article; and a description of the article purchased or sold. The pawnbroker must keep and maintain in good working order the electronic equipment needed to create and maintain the records. The electronic records are open to inspection by the state Attorney General, State Comptroller, any police officer, departmental inspector, Secretary of State, Judge of the Crimi- nal Court, or any person authorized by the Secretary of State or Judge.
Nothing in this section is intended to affect or supersede any other recordkeeping requirement imposed by or pursuant to any other applicable state or local law.
57-c: The penalty for a violation of this section or rules promulgated thereunder are nbt less than $25.00 nor more than $500, or imprisonment for 15 days or less, or both. Additionally, a civil penalty of $100 per violation can be recovered in a civil action. The Attorney General is authorized to bring an injunction proceeding to restrain or enjoin any violation of this article.
Section 2. Provides for the effective date.
Justification
Pawnbrokers and second-hand dealers in New York are licensed by munici- palities, and their recordkeeping practices are monitored by local law enforcement authorities. These local law enforcement officers must routinely visit pawnshops and second-hand dealer locations to inspect the log book containing a record of each transaction to ensure that they are completed accurately and correctly reflect the property present in the store. In order to address the cumbersome nature of current record- keeping statewide, the State must encourage electronic recordkeeping, such as with a web-based electronic data transfer service which would serve as the repository of transaction records for pawnbrokers and second-hand dealers. If enacted, this bill would require these types of businesses to upload their transactions to such a website. Instead of physically visiting the businesses to review and collect transaction records, enforcement personnel are able to conduct a "virtual" inspection by accessing the website and examining the entries. Enforce- ment personnel continue to make physical inspections but the need to do so is less frequent and is facilitated by the information that the inspector or police officer has already reviewed. Transaction informa- tion uploaded onto the online database includes serial numbers, photos, and other information conclusively identifying the property, which is capable of being cross-referenced against complaints of stolen property as soon as the transaction is uploaded. The ability of the system to conduct searches for stolen property items and to identify the purported owner offering the property for sale or pawn has been successful in New York City, resulting in hundreds of investigative leads that have led to the recovery of the property and the arrest of the thieves.
The mandatory use of electronic recordkeeping for pawnbrokers and second-hand dealers is growing, particularly among municipalities whose resources are stretched to the limit. Cities including New York City, Chicago, Philadelphia, Syracuse, and Rochester have all enacted local laws. This bill would greatly facilitate both administrative efficiency and crime reduction by providing a simple way to keep accurate trans- action records. The results would be beneficial to those whose stolen property is recovered.
Prior legislative history
01/03/24 REFERRED TO CONSUMER PROTECTION
01/19/23 REFERRED TO CONSUMER PROTECTION
01/05/22 REFERRED TO CONSUMER PROTECTION
2020: S.2499 - Referred to Consumer Protection
Fiscal implications
To be determined.
Effective date
On the ninetieth day after it shall have become a law, provided, howev- er, that the Secretary of the New York State Department of State shall have the authority to promulgate any rules or regulations necessary for its implementation, including the promulgation of any rules, or regu- lations prior to such effective date.
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