Bill Text: IN HB1188 | 2013 | Regular Session | Enrolled
Bill Title: Precious metal and rental purchase agreements.
Spectrum: Slight Partisan Bill (Democrat 2-1)
Status: (Passed) 2013-05-13 - Public Law 222 [HB1188 Detail]
Download: Indiana-2013-HB1188-Enrolled.html
Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is
being amended, the text of the existing provision will appear in this style type, additions
will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
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adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles
conflicts between statutes enacted by the 2012 Regular Session of the General Assembly.
AN ACT to amend the Indiana Code concerning trade regulation.
Be it enacted by the General Assembly of the State of Indiana:
SECTION 2. IC 24-4-13-0.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2014]: Sec. 0.5. (a) This chapter applies only to a jeweler that is a retail merchant that:
(1) is located in an area zoned for commercial land use;
(2) is open to the public;
(3) primarily sells jewelry; and
(4) remitted at least ten thousand dollars ($10,000) of Indiana gross retail and use tax during the immediately preceding calendar year as a result of retail sales of jewelry.
(b) This chapter does not apply to the following:
(1) A precious metal dealer regulated under IC 24-4-19.
(2) A valuable metal dealer (as defined in IC 25-37.5-1-1(b)).
(3) A pawnbroker licensed under IC 28-7-5.
SECTION 3. IC 24-4-19 IS ADDED TO THE INDIANA CODE AS
A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2014]:
Chapter 19. Precious Metal Dealers
Sec. 1. This chapter does not apply to the following:
(1) A jeweler regulated under IC 24-4-13 concerning used
jewelry sales.
(2) A valuable metal dealer (as defined in IC 25-37.5-1-1(b)).
(3) A pawnbroker licensed under IC 28-7-5.
(4) The purchase or resale of a mint issued coin by a person
whose primary business is buying, selling, and trading mint
issued coins.
Sec. 2. As used in this chapter, "jewelry" means personal
ornaments made of gold, silver, or platinum that may or may not
contain precious, semiprecious, or imitation stones.
Sec. 3. As used in this chapter, "mint issued coin" means a coin
that:
(1) is bought or sold as an investment in a rare or precious
metal;
(2) has a collectable value greater than the face value of the
coin; or
(3) is collectable or desirable due to the age, rarity, or
condition of the coin.
Sec. 4. As used in this chapter, "permanent place of business"
means a fixed premises:
(1) owned by a precious metal dealer; or
(2) leased by a precious metal dealer for a term of at least
twelve (12) months;
at which the precious metal dealer purchases or resells precious
metal.
Sec. 5. As used in this chapter, "person" means an individual, a
firm, an association, a limited liability company, a partnership, a
joint stock association, a trust, or a corporation.
Sec. 6. (a) As used in this chapter, "precious metal" means:
(1) used jewelry; and
(2) other used articles of personal property that:
(A) are made of gold, silver, or platinum; and
(B) were previously purchased at retail, acquired by gift,
or obtained in some other fashion by a consumer.
(b) The term does not include:
(1) mint issued coins;
(2) ingots; or
(3) industrial residue or byproducts that contain gold, silver,
or platinum purchased from manufacturing firms.
Sec. 7. As used in this chapter, "precious metal dealer" means
a person who engages in the business of purchasing precious metal
for the purpose of reselling the precious metal in any form.
Sec. 8. As used in this chapter, "purchase" means to acquire
property in exchange for cash, credit, or other valuable
consideration.
Sec. 9. As used in this chapter, "seller" means a consumer or
other person who sells precious metal to a precious metal dealer.
Sec. 10. As used in this chapter, "used jewelry" means jewelry
previously purchased at retail, acquired by gift, or obtained in
some other fashion by a consumer.
Sec. 11. A precious metal dealer who purchases or resells
precious metal must comply with this chapter. However, this
chapter does not apply to jewelry used by a customer as a trade-in
toward the purchase of a new piece of jewelry.
Sec. 12. A precious metal dealer may engage in the business of
purchasing or reselling precious metal in Indiana only at a
permanent place of business owned or leased by the precious metal
dealer.
Sec. 13. (a) A precious metal dealer must satisfy the registration
requirements described in subsections (b) and (c) before the
precious metal dealer may engage in the business of purchasing or
reselling precious metal at a permanent place of business in
Indiana.
(b) A precious metal dealer must submit to the secretary of state
one (1) time every twelve (12) months a registration that includes
the following:
(1) The name of the precious metal dealer.
(2) The addresses of all permanent places of business owned
or leased by the precious metal dealer in Indiana.
(3) Any other information required by the secretary of state.
(4) A registration fee of one hundred dollars ($100), to be
deposited by the secretary of state into the electronic and
enhanced access fund established by IC 4-5-10-5.
(c) A precious metal dealer must submit a registration to a law
enforcement agency one (1) time every twelve (12) months for each
permanent place of business owned or leased by the precious metal
dealer in Indiana as follows:
(1) If the permanent place of business is located in a
municipality that maintains a law enforcement agency, the
registration shall be submitted to the law enforcement agency
of the municipality.
(2) If the permanent place of business is not located in a
municipality that maintains a law enforcement agency, the
registration shall be submitted to the sheriff of the county in
which the permanent place of business is located.
A registration submitted to a law enforcement agency under this
subsection must include the name of the precious metal dealer, the
address of the permanent place of business, any other information
required by the law enforcement agency, and a registration fee of
fifty dollars ($50). However, if a precious metals dealer registers
more than one (1) permanent place of business with the same law
enforcement agency, the precious metal dealer must pay a
registration fee of fifty dollars ($50) to register all the permanent
places of business with the law enforcement agency.
Sec. 14. (a) If a precious metal dealer purchases precious metal
from a seller, the precious metal dealer shall:
(1) verify the identity of the seller by use of a government
issued photographic identification;
(2) make a copy of the seller's government issued
photographic identification; and
(3) take a photograph of the precious metal.
(b) A precious metal dealer shall retain a copy of the:
(1) government issued photographic identification; and
(2) photograph;
described in subsection (a) as required in section 15(e) of this
chapter.
Sec. 15. (a) A precious metal dealer shall keep and use in the
precious metal dealer's business the books, accounts, and records
necessary to determine whether the precious metal dealer is
complying with this chapter.
(b) A precious metal dealer shall preserve the books, accounts,
and records, including cards used in the card system, for at least
two (2) years after making the final entry on any purchase
recorded.
(c) The precious metal dealer shall keep the books and records
so that the business of purchasing precious metal for resale may be
readily separated and distinguished from any other business in
which the precious metal dealer is engaged.
(d) If a precious metal dealer, in the conduct of the business,
purchases precious metal from a seller, the purchase shall be
evidenced by a bill of sale properly signed by the seller verifying
the accuracy of the information in the bill of sale. All bills of sale
must be in duplicate and must list the following separate items:
(1) The date of sale.
(2) The:
(A) name;
(B) address;
(C) date of birth; and
(D) driver's license number or Social Security number;
of the seller from whom the precious metal was purchased.
(3) The amount of consideration paid for the precious metal.
(4) The:
(A) name of the precious metal dealer; and
(B) address of the permanent place of business where the
purchase occurred.
(5) A description of each article of precious metal sold.
However, if multiple articles of precious metal of a similar
nature are delivered together in one (1) transaction, the
description of the articles is adequate if the description
contains the quantity of the articles delivered and a physical
description of the type of articles delivered, including any
unique identifying marks, numbers, names, letters, or special
features.
(6) The type of government issued photographic identification
used to verify the identity of the seller under section 14 of this
chapter, together with the name of the governmental agency
that issued the photographic identification and the
identification number present on the government issued
photographic identification.
(e) If a precious metal dealer purchases precious metal, the
precious metal dealer shall retain as part of the books, accounts,
and records kept by the precious metal dealer under this section:
(1) the original copy of the bill of sale described in subsection
(d); and
(2) the:
(A) copy of the seller's government issued photographic
identification; and
(B) photograph of the precious metal;
obtained by the precious metal dealer as required under
section 14 of this chapter.
The second copy of the bill of sale shall be delivered to the seller by the precious metal dealer at the time of sale.
(f) The heading on all bill of sale forms must be in boldface type.
Sec. 16. (a) Each day a precious metal dealer purchases precious metal at a permanent place of business, the precious metal dealer shall report the information described in section 15(d) of this chapter concerning the precious metal to a law enforcement agency as follows:
(1) If the permanent place of business is located in a municipality that maintains a law enforcement agency, the report required under this section shall be made to the law enforcement agency of the municipality.
(2) If the permanent place of business is not located in a municipality that maintains a law enforcement agency, the report required under this section shall be made to the sheriff of the county in which the permanent place of business is located.
(b) The information reported to a law enforcement agency under subsection (a) shall be submitted in an electronic format if requested by the law enforcement agency.
Sec. 17. (a) A precious metal dealer shall make the records and information under section 15 of this chapter available for examination upon the request of a law enforcement agency (as defined in IC 10-13-3-10).
(b) The law enforcement agency under subsection (a) shall determine if:
(1) the records are sufficient; and
(2) the precious metal dealer has made the information reasonably available.
Sec. 18. A precious metal dealer may not purchase precious metal:
(1) from an individual less than eighteen (18) years of age; or
(2) that the precious metal dealer believes or should have reason to believe is stolen property acquired as a result of a crime.
Sec. 19. (a) A precious metal dealer shall hold each article of precious metal purchased by the precious metal dealer for at least ten (10) calendar days after the date the precious metal dealer purchases the precious metal:
(1) at the precious metal dealer's permanent place of business where the purchase occurred; and
(2) separate from other precious metal.
(b) During the ten (10) calendar days that the precious metal dealer must hold precious metal under subsection (a), the precious metal dealer:
(1) may not change the form of the precious metal; and
(2) shall allow a law enforcement officer to inspect the precious metal.
Sec. 20. (a) Records and information generated by a precious metal dealer in the course of business are confidential under IC 5-14-3-4.
(b) A law enforcement officer (as defined in IC 3-6-6-36(a)) may obtain or receive records and information described in subsection (a) relating to the purchase of precious metal for use in investigating crime.
(c) Law enforcement officials may disclose the name and address of the precious metal dealer to an adverse claimant in the case of a dispute over ownership of property in possession of the precious metal dealer.
Sec. 21. A person who knowingly or intentionally violates this chapter commits a Class A misdemeanor.
SECTION 4. IC 24-7-5-12 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 12. (a) A lessor may contract for and receive a fee for accepting rental payments by telephone in connection with a rental purchase agreement, if all of the following conditions are met:
(1) The fee is assessed only upon request by the lessee for the underlying payment by telephone service.
(2) The payment by telephone service is not established in advance, under the rental purchase agreement or otherwise, as the expected method for making rental payments under the rental purchase agreement.
(3) The fee does not exceed one dollar and fifty cents ($1.50).
(4) The lessee retains the right to make rental payments by payment methods in connection with which no additional fee would be assessed or incurred (including in-person payments and payments by mail) as a result of such alternative payment methods.
(5) The fee is contracted for and disclosed by the lessor in the rental purchase agreement.
(6) The lessor posts a sign at each store location disclosing to existing and prospective lessees:
(A) the amount of the fee;
(B) the lessee's right and option to make rental payments by alternative payment methods and not be assessed or incur an additional fee; and
(C) the alternative payment methods offered by the lessor in connection with which no additional fee would be assessed or incurred.
(7) The lessor's books and records provide an audit trail sufficient to allow the department and its examiners to confirm the lessee's compliance with the conditions listed in subdivisions (1) through (6).
(b) A fee may not be charged under this section unless there is interaction between a live employee or representative of the lessor and the lessee.
SECTION 5. IC 24-7-6-1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 1. A lessee who fails to make timely rental payments has the right to reinstate the original rental purchase agreement under the original terms of the agreement without losing any rights or options previously acquired under the rental purchase agreement and without additional charges or penalties, except charges or penalties authorized under section 2 of this chapter, if:
(1) subsequent to having failed to make a timely rental payment, the lessee
(2) not more than
SECTION 6. IC 25-37.5-1-1, AS AMENDED BY P.L.158-2009, SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2014]: Sec. 1. (a) When used in this chapter, "valuable metal" means any product made of metal that readily may be resold. The term:
(1) includes metal bossies and small component motor vehicle parts;
(2) does not include the following:
(A) A beverage can.
(B) Used jewelry regulated under IC 24-4-13.
(C) Precious metal regulated under IC 24-4-19.
(b) As used in this chapter, "valuable metal dealer" means any individual, firm, corporation, limited liability company, or partnership engaged in the business of purchasing and reselling valuable metal
either at a permanently established place of business or in connection
with a business of an itinerant nature, including junk shops, junk yards,
junk stores, auto wreckers, scrap metal dealers or processors, salvage
yards, collectors of or dealers in junk, and junk cars or trucks. The term
includes a core buyer. The term does not include a person who
purchases a vehicle and obtains title to the vehicle.
(c) As used in this chapter, "purchase" means acquiring a valuable
metal product for a consideration, but does not include purchases
between scrap metal processing facilities (as defined in IC 8-23-1-36).
SECTION 7. IC 28-7-5-16, AS AMENDED BY P.L.27-2012,
SECTION 97, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: Sec. 16. (a) The licensee shall keep and use in the
licensee's business such books, accounts, and records as will enable the
department to determine whether the licensee is complying with this
chapter and with the rules adopted by the department under this
chapter. Every licensee shall preserve such books, accounts, and
records, including cards used in the card system for at least two (2)
years after making the final entry on any loan recorded therein. The
books and records of the licensee shall be kept so that the pawnbroking
business transacted in Indiana may be readily separated and
distinguished from the business of the licensee transacted elsewhere
and from any other business in which the licensee may be engaged. To
determine whether the licensee is complying with this chapter and with
rules adopted by the department under this chapter, the department may
examine the books, accounts, and records required to be kept by the
licensee under this subsection. If the department examines the books,
accounts, and records of the licensee under this subsection, the licensee
shall pay all reasonably incurred costs of the examination in
accordance with the fee schedule adopted under IC 28-11-3-5. A fee
established by the department under IC 28-11-3-5 may be charged for
each day a fee under this subsection is delinquent.
(b) If a pawnbroker, in the conduct of the business, purchases an
article from a seller, the purchase shall be evidenced by a bill of sale
properly signed by the seller. All bills of sale must be in duplicate and
must recite the following separate items:
(1) Date of bill of sale.
(2) Amount of consideration.
(3) Name of pawnbroker.
(4) Description of each article sold. However, if multiple articles
of a similar nature that do not contain an identification or serial
number (such as precious metals, gemstones, musical recordings,
video recordings, books, or hand tools) are delivered together in
one (1) transaction, the description of the articles is adequate if
the description contains the quantity of the articles delivered and
a physical description of the type of articles delivered, including
any other unique identifying marks, numbers, names, letters, or
special features.
(5) Signature of seller.
(6) Address of seller.
(7) Date of birth of the seller.
(8) The type of government issued identification used to verify the
identity of the seller, together with the name of the governmental
agency that issued the identification, and the identification
number present on the government issued identification.
(c) If a pawnbroker, in the conduct of the business, purchases an
article from a seller on the condition of selling the property back at a
stipulated price, the transaction shall be evidenced by a bill of sale
properly signed by the seller. All such bills of sale must be in duplicate
and recite the information in subsection (b) and must also contain the
following information:
(1) Date of resale.
(2) Amount of resale.
(d) The original copy of the bill of sale shall be retained by the
pawnbroker. The second copy shall be delivered to the seller by the
pawnbroker at the time of sale. The heading on all bill of sale forms
must be in boldface type.
(e) If a pawnbroker, in the conduct of the business, purchases
precious metal (as defined in IC 24-4-19-6) from a seller, the
pawnbroker shall, for at least ten (10) calendar days after the date
the pawnbroker purchases the precious metal, retain the precious
metal:
(1) at the pawnbroker's permanent place of business where
the pawnbroker purchased the precious metal; and
(2) separate from other precious metal.
(e) (f) Each licensee shall maintain a record of control indicating the
number of accounts and dollar value of all outstanding pawnbroking
receivables. Each licensee shall maintain a separate record of
transactions subject to subsection (c).
(f) (g) If a licensee contracts with an outside vendor to provide a
service that would otherwise be undertaken internally by the licensee
and be subject to the department's routine examination procedures, the
person that provides the service to the licensee shall, at the request of
the director, submit to an examination by the department. If the director
determines that an examination under this subsection is necessary or
desirable, the examination may be made at the expense of the person
to be examined. If the person to be examined under this subsection
refuses to permit the examination to be made, the director may order
any licensee that receives services from the person refusing the
examination to:
(1) discontinue receiving one (1) or more services from the
person; or
(2) otherwise cease conducting business with the person.
SECTION 8. IC 35-51-24-1, AS AMENDED BY HEA 1376-2013,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2014]: Sec. 1. The following statutes define crimes in
IC 24:
IC 24-1-1-3 (Concerning combinations in restraint of trade).
IC 24-1-2-1 (Concerning combinations in restraint of trade).
IC 24-1-2-2 (Concerning combinations in restraint of trade).
IC 24-1-2-3 (Concerning combinations in restraint of trade).
IC 24-1-3-1 (Concerning combinations in restraint of trade).
IC 24-1-4-3 (Concerning combinations in restraint of trade).
IC 24-2-2-3 (Concerning trademarks, trade names, and trade
secrets).
IC 24-3-4-15 (Concerning regulated prices).
IC 24-3-4-16 (Concerning regulated prices).
IC 24-3-4-17 (Concerning regulated prices).
IC 24-3-5.4-24 (Concerning regulated prices).
IC 24-4-1-1 (Concerning regulated businesses).
IC 24-4-3-5 (Concerning regulated businesses).
IC 24-4-4-5 (Concerning regulated businesses).
IC 24-4-6-1 (Concerning regulated businesses).
IC 24-4-11-11 (Concerning regulated businesses).
IC 24-4-12-11 (Concerning regulated businesses).
IC 24-4-13-6 (Concerning regulated businesses).
IC 24-4-19-21 (Concerning regulated businesses).
IC 24-16.4-4 (Concerning regulated businesses).
IC 24-4.5-5-301 (Concerning Uniform Consumer Credit Code).
IC 24-4.5-5-302 (Concerning Uniform Consumer Credit Code).
IC 24-4.6-3-4 (Concerning unauthorized solicitation of money
using the name of a public safety agency).
IC 24-5-8-19 (Concerning consumer sales).
IC 24-5-12-22 (Concerning consumer sales).
IC 24-5-12-25 (Concerning consumer sales).
IC 24-5-14-10 (Concerning consumer sales).
IC 24-5-14.5-11 (Concerning false or misleading caller identification).
IC 24-5-16-16 (Concerning consumer sales).
IC 24-5-23.5-9 (Concerning consumer sales).
IC 24-5.5-6-1 (Concerning mortgage rescue protection fraud).
IC 24-6-1-1 (Concerning standard weights and measures).
IC 24-6-3-15 (Concerning standard weights and measures).
IC 24-6-6-11 (Concerning standard weights and measures).
IC 24-7-9-1 (Concerning retail purchase agreements).
IC 24-7-9-2 (Concerning retail purchase agreements).
IC 24-7-9-3 (Concerning retail purchase agreements).
IC 24-8-6-1 (Concerning promotional gifts and contests).
IC 24-9-8-1 (Concerning home loan practices).
HEA 1188
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