Bill Text: NJ S2926 | 2018-2019 | Regular Session | Introduced


Bill Title: Modifies recordkeeping requirements for secondhand jewelry and precious metal transactions; increases penalties for violations.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2018-09-17 - Introduced in the Senate, Referred to Senate Commerce Committee [S2926 Detail]

Download: New_Jersey-2018-S2926-Introduced.html

SENATE, No. 2926

STATE OF NEW JERSEY

218th LEGISLATURE

 

INTRODUCED SEPTEMBER 17, 2018

 


 

Sponsored by:

Senator  CHRISTOPHER "KIP" BATEMAN

District 16 (Hunterdon, Mercer, Middlesex and Somerset)

 

 

 

 

SYNOPSIS

     Modifies recordkeeping requirements for secondhand jewelry and precious metal transactions; increases penalties for violations.

 

CURRENT VERSION OF TEXT

     As 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 the provisions of 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 fined not less than $500 or more than $1,000 for a first offense, and (2) disorderly person and shall be fined not less than $1,000 or more than $2,500 for a second or subsequent offense.  The penalty imposed 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] The person's 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] the person's 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] five years, 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 and detailed descriptions 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, and a copy of the proof of identity provided by, the seller of the precious metals.

      f.    Obtain proof of identity from each person who sells precious metals to [him] the buyer by requesting and examining a photograph-bearing valid State or federal issued driver's license or other government issued form of photo identification.

      g.   Retain any precious metals in the form in which they were purchased for a period of not less than [two] 10 business days [, minimum 48 hours] following the delivery of the record of the purchase of those precious metals to the seller, as required by subsection e. of this section. 

     Precious metals in the form of used or secondhand jewelry shall be retained by the buyer for not less than 10 business days following the delivery of the record of the purchase of that jewelry to the local police department, as required by subsection c. of section 1 of P.L.2009, c.214 (C.2C:21-36), provided, however, that a municipal ordinance adopted prior to the effective date of P.L.2009, c.214 (January 16, 2010) may provide a longer minimum length of time to retain possession of used or secondhand jewelry.

      h.   Upon reasonable request, allow the inspection of the serialized receipts [or] , precious metals , bonds, or digital photographs provided for in subsections e.  [and] , g. , i., and j. 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] A bond shall not 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] P.L.1981, c.96 (C.51:6A-1 et seq.) shall be liable to a mandatory civil penalty of not less than $500 [nor] or more than $1,000 for a first offense.  A person who commits a second or subsequent offense is a petty disorderly person.  In addition to the conviction for a petty disorderly persons offense, a person who commits a second or subsequent offense shall be subject to a mandatory civil penalty of not less than $1,000 or 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 a violation of [this act] P.L.1981, c.96 (C.51:6A-1 et seq.) 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 next following the date of enactment, but the Attorney General may take any anticipatory action in advance of that date as may be necessary for the implementation of this act.

 

 

STATEMENT

 

      This bill modifies recordkeeping laws related to the sale of precious metals to make them consistent with the requirements for secondhand jewelry transactions, and increases the penalties imposed on secondhand jewelry and precious metal buyers who violate certain recordkeeping laws. 

      Under current law, the retention periods for precious metal transactions are shorter than those required for jewelry retailers, wholesalers, and smelters who purchase used or secondhand jewelry.  Currently, buyers are required to retain detailed records of precious metal transactions for a period of one year and are required to retain the precious metals in the form they were purchased for a period of two days.  A person who violates these provisions is subject to a mandatory penalty of between $500 and $1,000. 

      Current law requires jewelry retailers, wholesalers, and smelters to maintain detailed records of all secondhand jewelry they purchase for five years, and deliver a copy of these records to the local police department each week.  The jewelry may not be sold until 10 business days after the records are delivered.  A person who violates these record-keeping provisions is presumed to have the requisite knowledge or belief for a violation of N.J.S.2C:20-7, which prohibits the receipt of stolen property.  Currently, there is no specific penalty for violating these recordkeeping requirements when knowledge of the receipt of stolen property under N.J.S.2C:20-7 is not established. 

      The bill requires precious metal buyers to verify the identity of a seller by examining a driver's license or other government-issued form of photograph identification, as required for used and secondhand jewelry purchases.  In addition, the bill extends the period of time that records for precious metal purchases are required to be retained to five years, and the period of time precious metals are to be retained in the form in which they were purchased to 10 days.  The bill further provides that the retention period for precious metals in the form of used and secondhand jewelry begins following the delivery of the record of purchase to the local police department, as required for used or secondhand jewelry, unless a municipal ordinance adopted prior to January 16, 2010 provides for a longer retention period.  

      The bill also increases the penalties for a violation of the recordkeeping requirements for precious metal purchases.  Under the

bill, the same mandatory civil penalty would continue to be imposed on first-time offenders. However, a subsequent violation would constitute a petty disorderly persons offense, which is punishable by a fine of up to $500, imprisonment for up to 30 days, or both.  Subsequent violations also would be punishable by an additional mandatory civil penalty of not less than $1,000 or more than $2,500.  These penalties are in addition to any other fines or penalties that may be imposed under the State's criminal code.

      The bill also establishes penalties for violating the recordkeeping requirements for used and secondhand jewelry, which are consistent with the increased penalties established under the bill for precious metal transactions.

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