New Jersey-2014-S1955-Introduced

An Act concerning recordkeeping of secondhand jewelry and precious metal transactions and amending P.L.2009, c.214 and P.L.1981, c.96.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. Section 3 of P.L.2009, c.214 (C.2C:21-38) is amended to read as follows:

3. a. The requisite knowledge or belief for a violation of N.J.S.2C:20-7 is presumed in the case of a person subject to the provisions of section 1 or 2 of P.L.2009, c.214 (C.2C:21-36 or C.2C:21-37) who purchases any article of used or secondhand jewelry and fails to comply with the requirements of section 1 or 2 of P.L.2009, c.214 (C.2C:21-36 or C.2C:21-37), as applicable.

b. Notwithstanding N.J.S.2C:43-3, a person who violates subsection b., c., or d. of section 1 of P.L.2009, c.214 (C.2C:21-36) is a (1) petty disorderly person and shall be assessed a penalty of not less than $500 or more than $1,000 for a first offense, and (2) disorderly person and shall be assessed a penalty of not less than $1,000 or more than $2,500 for a second or subsequent offense. The penalty assessed under this subsection shall be in addition to any other fine, fee, assessment or penalty imposed under Title 2C of the New Jersey Statutes.

(cf: P.L.2009, c.214, s.3)

2. Section 1 of P.L.1981, c.96 (C.51:6A-1) is amended to read as follows:

1. Any person in the business of buying precious metals who buys, attempts to buy or offers to buy precious metals on the basis of bulk value from any person who is not in the business of selling precious metals shall:

a. Clearly and prominently display at the point of purchase:

(1) His name and address;

(2) The price being offered or paid by the buyer for precious metals expressed as price per standard measure of weight and fineness as prescribed by the Superintendent of Weights and Measures.

b. Include his name and address in all advertisements concerning such precious metals.

c. Weigh the precious metals in plain view of the seller on State certified scales with the certificate of inspection clearly and prominently displayed.

d. Test the fineness of precious metals, if any test is so performed, in plain view of the seller.

e. Issue to the seller and keep for [his] the buyer's own records, for not less than one year, a serialized receipt for each purchase of precious metals containing the following:

(1) The name and address of the buyer;

(2) Date of the transaction;

(3) The names of the precious metals purchased;

(4) The finenesses of the precious metals purchased;

(5) The weights of the precious metals purchased;

(6) The prices paid for the precious metals at the standard measures of weight and fineness prescribed by the superintendent;

(7) The name, address and signature of the seller of the precious metals.

f. Obtain proof of identity from each person who sells precious metals to him.

g. Retain any precious metals in the form in which they were purchased for a period of not less than two business days, minimum 48 hours.

h. Upon reasonable request, allow the inspection of the serialized receipts or precious metals provided for in subsections e. and g. respectively of this section by any law enforcement officer or weights and measures official.

i. Obtain a bond in an amount and form prescribed by regulations of the Office of Weights and Measures. The bond shall be obtained from a surety company authorized by law to do business in this State. The bond shall run to the State for the benefit of any person injured by the wrongful act, default, fraud or misrepresentation of the buyer of precious metals. No bond shall comply with the requirements of this subsection unless the bond contains a provision that it shall not be cancelled for any cause unless notice of intention to cancel is filed in the Office of Weights and Measures at least 30 days before the day upon which cancellation shall take effect. This subsection shall only apply to transient buyers.

j. Maintain, for not less than one year, digital photographs of the precious metals purchased.

(cf: P.L.2013, c.247, s.1)

3. Section 3 of P.L.1981, c.96 (C.51:6A-3) is amended to read as follows:

3. Any person who violates any provision of this act shall be liable to a mandatory civil penalty of not less than $500 nor more than $1,000 for a first offense. A person who commits a subsequent offense is a petty disorderly person and subject to a mandatory civil penalty of not less than $1,000 nor more than $2,500. The mandatory civil penalty shall be recoverable by the Superintendent of Weights and Measures pursuant to the provisions of the "Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.). An action for the recovery of a civil penalty for violation of this act shall be within the jurisdiction of and may be brought before the Superior Court or municipal court in the municipality where the offense is committed or where the defendant resides or where the defendant may be apprehended.

A summons or warrant against any foreign business entity doing business in this State shall be processed as provided by law.

(cf: P.L.2013, c.126, s.1)

4. This act shall take effect on the first day of the fourth month following the date of enactment, but the Attorney General may take such anticipatory action in advance of that date as may be necessary for the implementation of this act.

STATEMENT

This bill would increase the penalties for secondhand jewelry and precious metal buyers in violation of recordkeeping laws.

Current law, at P.L.1981, c.96 (C.51:6A-1 et seq.), imposes certain recordkeeping requirements on a person engaged in buying precious metals. A violation of this law results in a mandatory penalty of between $500 and $1,000. This bill provides that the existing penalty for a violation would be imposed for a first offense. For any subsequent offense, a violator would be deemed a petty disorderly person and subject to a fine of up to $500, imprisonment for up to 30 days, or both. An additional mandatory civil penalty of not less than $1,000 or more than $2,500 would also be imposed for a subsequent violation.

Under P.L.2009, c.214 (C.2C:21-36 et seq.), a person purchasing secondhand jewelry who fails to comply with certain requirements is presumed to have violated State law concerning receiving stolen property. No specific penalty exists for a person who fails to properly verify the identification of an individual selling jewelry to a business, deliver a weekly report of used jewelry purchased, and keep the jewelry in the business' possession for the minimum 10 days. Section 1 of the bill sets forth penalties for violations of these administrative provisions, similar to those established for precious metal recordkeeping violations. For a first offense, a violator would be a petty disorderly person and also assessed a mandatory penalty of not less than $500 or more than $1,000. For a second or subsequent offense, a person would be a disorderly person and also assessed a mandatory penalty of not less than $1,000 or more than $2,500.