Bill Text: PA HB2076 | 2009-2010 | Regular Session | Introduced

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Bill Title: Adding a short title and definitions; providing for mail-in secondhand precious metals dealers; and making editorial changes.

Spectrum: Moderate Partisan Bill (Democrat 12-2)

Status: (Introduced - Dead) 2009-11-12 - Referred to CONSUMER AFFAIRS [HB2076 Detail]

Download: Pennsylvania-2009-HB2076-Introduced.html

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PRINTER'S NO. 2893
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 2076 Session of2009
INTRODUCED BY KORTZ, BELFANTI, CALTAGIRONE, FRANKEL, HORNAMAN, JOSEPHS, KULA, MANN, MARSHALL, McGEEHAN, MELIO, PASHINSKI, SIPTROTH AND VULAKOVICH, NOVEMBER 12, 2009
REFERRED TO COMMITTEE ON CONSUMER AFFAIRS, NOVEMBER 12, 2009
AN ACT
Amending the act of February 24, 1984 (P.L.92, No.17), entitled
"An act regulating the purchase and sale of precious metals,"
adding a short title and definitions; providing for mail-in
secondhand precious metals dealers; and making editorial
changes.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The title and table of contents of the act of
February 24, 1984 (P.L.92, No.17), referred to as the Precious
Metal Sale Regulation Law, are amended to read:
AN ACT
Regulating the purchase and sale of precious metals; and
providing for mail-in secondhand precious metals dealers.
TABLE OF CONTENTS
Chapter 1. Preliminary Provisions
Section 101. Short title.
Section [1] 102. Definitions.
Chapter 3. Precious Metals Dealers
Section [2] 301. License required.
Section [3] 302. Records of transactions.
Section [4] 303. Dealer's retention of precious metal and
availability for inspection.
Section [5] 304. Purchases from minors.
Section [6] 305. Posting of prices.
Section [7] 306. Scales and weighing devices.
Section [8] 307. Local ordinances.
Section [9] 308. Inspection of licensee.
Section [10] 309. Penalty.
Chapter 5. Mail-In Secondhand Precious Metals Dealers
Section 501. General provisions.
Section 502. Tendering payment.
Section 503. Inspection of records and premises.
Section 504. Holding period.
Section 505. Penalties.
Chapter 13. Miscellaneous Provisions
Section [11] 1301. Severability.
Section [12] 1302. Application.
Section [13] 1303. Effective date.
Section 2. The act is amended by adding a chapter heading:
CHAPTER 1
PRELIMINARY PROVISIONS
Section 3. The act is amended by adding a section to read:
Section 101. Short title.
This act shall be known and may be cited as the Precious
Metals Sale Regulation Law.
Section 4. Section 1 of the act is renumbered and amended to
read:
Section [1] 102. Definitions.
The following words and phrases when used in this act shall
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have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Dealer in precious metals." An individual, partnership,
association, corporation or business entity, who or which
purchases precious metals from the general public for resale or
refining or any individual who acts as agent for such
individual, partnership, association, corporation or business
entity for such purchase or purchases. Excluded from this
definition are financial institutions licensed under Federal or
State banking laws, the purchaser of precious metals who
purchases from a seller seeking a trade-in or allowance, the
manufacturers of jewelry or of other items composed, in whole or
in part, of gold, silver or platinum and the purchaser of
precious metals for his, her or its own use or ownership and not
for resale or refining.
"Gold." Any alloy of the element gold, ten karat or of
greater fineness. A karat is 1/24 part, by weight, of the alloy
of the metallic element gold.
"Jewelry." A personal ornament that contains precious metals
and may contain gemstones.
"Mail-in secondhand precious metals dealer" or "secondhand
dealer." A person or entity that:
(1) conducts business within this Commonwealth and that
contracts with other persons or entities to buy precious
metals or jewelry through an Internet website, the United
States mail or telemarketing; or
(2) conducts business within this Commonwealth and
regularly engages in the business of purchasing jewelry or
precious metals through the United States mail or Internet-
based transactions.
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"Platinum." Any alloy of the element platinum, 750/1000 or
more parts per thousand, by weight, of pure platinum.
"Precious metals." Items containing or being of gold, silver
or platinum, including, but not limited to, jewelry and silver
services, but excluding coins, ingots, bullion or photographic
film or any article containing less than 5% of gold, silver or
platinum by weight.
"Seller." A person or entity offering precious metals or
jewelry for purchase which belong solely to that person or
entity and having absolute authority to sell such goods.
"Silver." Any alloy of the element silver, 900/1000 or more
parts per thousand, by weight, of pure silver.
"Transaction." An event relating to the purchase of
secondhand precious metals or jewelry by a mail-in secondhand
precious metals dealer.
"Working days." Excludes Saturdays, Sundays and Federal or
State legal holidays.
Section 5. The act is amended by adding a chapter heading to
read:
CHAPTER 3
PRECIOUS METALS DEALERS
Section 6. Sections 2, 3, 4, 5, 6 and 7 of the act are
renumbered to read:
Section [2] 301. License required.
(a) Dealer.--A dealer in precious metals shall obtain a
license from the sheriff of each and every county in which the
dealer purchases precious metals.
(b) Application form.--The application for such license
shall be on a form as prescribed in regulations promulgated by
the Attorney General.
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(c) License fee.--The license fee shall not exceed $50 per
year as set by the Attorney General. Such fee shall be paid into
the treasury of the county where the license is issued for the
use of the county.
(d) Duration of license.--The license shall be for one year.
(e) Application to be public record.--Such license
application shall be a public record available to the general
public for inspection.
Section [3] 302. Records of transactions.
(a) Dealers to keep record.--Every dealer in precious metals
shall keep a record of every transaction upon a form approved by
the Attorney General. The record shall include as a minimum:
(1) The name, age and address of the seller which must
be verified by said dealer, requiring proof of identity from
the seller sufficient to insure the accuracy of the
represented name and address of the seller.
(2) An accurate description of the property purchased,
including any serial number or other identifying marks or
symbols and the date and hour of the transaction.
(b) Record to be maintained.--Said record shall be
maintained by the dealer in precious metals for a period of one
year from the date of the transaction and shall be available for
inspection by any law enforcement official of the Federal
Government, the Commonwealth or any of its municipalities.
(c) Copy of record to district attorney.--A copy of every
record of transaction shall be delivered or mailed to the
district attorney of the county in which a purchase of precious
metals is made by the close of the next working day after the
day on which the metal was purchased.
(d) Copy of record to police department in lieu of district
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attorney.--The district attorney may authorize such records to
be delivered or mailed to the police department of the
municipality in which the precious metal was purchased in lieu
of delivery or mailing to the district attorney.
(e) Time and manner of keeping records.--The Attorney
General shall, by regulation, prescribe the time and manner in
which such records shall be maintained, the form of
identification which a dealer must require from the seller to
verify the seller's name and address and the person or persons
to whom such records shall be available.
Section [4] 303. Dealer's retention of precious metal and
availability for inspection.
(a) Precious metal to be retained for five days.--Each item
of precious metal purchased by a dealer in precious metals shall
be retained in unaltered condition for five full working days
after report of its purchase has been filed with the proper
district attorney or his designee.
(b) Precious metal to be available for inspection.--Such
item of precious metal shall be available for inspection, during
the five working days, by law enforcement officials of the
Federal Government, the Commonwealth or any of its
municipalities in the course of their law enforcement duties. A
search warrant shall not be required unless the inspection is
made during hours other than those when the dealer in precious
metals is open for business.
(c) Law enforcement officials to give notice when they
believe item was stolen.--If a law enforcement official has
probable cause to believe an item of precious metal has been
stolen, he may give written notice to the dealer in precious
metals. Upon receipt of such written notice, such dealer in
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precious metals shall retain the item in unaltered condition for
an additional seven days, unless the law enforcement officer in
writing recalls such notice.
(d) Court may order dealer to retain items.--Upon
application of the district attorney, any court of proper
jurisdiction, under its powers presently prescribed by law, may
order the dealer in precious metals to retain such item or items
of precious metal at such place and under such conditions as the
court may decree.
(e) Where items to be retained.--Each item of precious metal
to be retained, pursuant to this section, shall be retained
within the county of purchase at the location where purchased by
the dealer in precious metals, unless authorized in writing by
the district attorney or his designee to be retained elsewhere.
Section [5] 304. Purchases from minors.
The dealer in precious metals shall require any minor seeking
to sell precious metals to produce written authority of a
parent, guardian or person in loco parentis authorizing the sale
of such precious metals. Such authorization shall give the name
and address of authorizing person. The dealer in precious metals
shall verify that such sale is authorized by inquiry of such
parent, guardian or person in loco parentis. Minors shall be
required to wait three full working days before receiving
payment from the sale of precious metals.
Section [6] 305. Posting of prices.
Prices for the purchase of precious metals shall be posted by
the dealer in precious metals in compliance with rules and
regulations promulgated or to be promulgated by the Department
of Agriculture.
Section [7] 306. Scales and weighing devices.
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(a) Rules and regulations of Department of Agriculture.--
Scales and other weighing or measuring devices used by dealers
in precious metals shall be in accordance with rules and
regulations promulgated or to be promulgated by the Department
of Agriculture.
(b) Supervision and inspection of scales.--Supervision and
inspection of such scales and weighing or measuring devices
shall be made by the appropriate State or municipal officers as
authorized by law or by the Department of Agriculture.
Section 7. Section 8 of the act is renumbered and amended to
read:
Section [8] 307. Local ordinances.
This [act] chapter shall not supersede or preclude the
adoption of any municipal ordinance applicable to dealers in
precious metals provided that such municipal ordinance meets the
minimum requirements of this act.
Section 8. Section 9 of the act is renumbered to read:
Section [9] 308. Inspection of licensee.
The acceptance of a license by a dealer in precious metals
implies consent to inspections of his, her or its premises by
law enforcement officials and officials authorized to enforce
laws and regulations pertaining to weights and measures. Such
inspections shall pertain to items of precious metals and to
scales and weighing or measuring devices.
Section 9. Section 10 of the act is renumbered and amended
to read:
Section [10] 309. Penalty.
(a) Unlicensed dealers.--The purchase of an item of precious
metal by an unlicensed dealer in precious metals shall
constitute a violation of this act and the dealer shall be
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guilty of a misdemeanor of the third degree.
(b) Licensed dealers.--Any licensed dealer in precious
metals who violates any provisions of this [act] chapter shall
be guilty of a misdemeanor of the third degree.
(c) Revocation of license and ineligibility.--Any
individual, partnership, association, corporation or business
entity violating any provisions of this [act] chapter shall,
upon conviction, in addition to the penalties set forth in
subsections (a) and (b) hereof, suffer immediately revocation of
any existing license issued pursuant to the provisions of this
act and shall be ineligible to apply for a dealer's license
under this [act] chapter for a period of five years thereafter.
Section 10. The act is amended by adding a chapter to read:
CHAPTER 5
MAIL-IN SECONDHAND PRECIOUS METALS DEALERS
Section 501. General provisions.
(a) Licensure.--A mail-in secondhand precious metals dealer
may not conduct business under this chapter without being
licensed by the Attorney General in accordance with the
licensure requirements set forth in section 301. License fees
shall be remitted to the Office of Attorney General. The Office
of Attorney General shall regularly transmit to each sheriff's
office a list of licensees.
(b) Payment.--A secondhand dealer may not remit payment to a
seller unless the seller has provided the following information:
(1) The seller's name, address, telephone number and e-
mail address, if available.
(2) The seller's driver's license number and issuing
state or other government-issued identification number.
(3) A sworn statement made by the seller that the seller
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is of lawful age and that the driver's license number or
other government-issued identification number and other
identifying information provided by the seller is true and
correct and that the seller is the lawful owner of the goods
with absolute authority to sell the goods. The statement must
include the following language: "I declare under penalty of
perjury that the foregoing is true and correct."
(c) Transaction record.--For every transaction, the
secondhand dealer must keep a record of the following:
(1) A complete and accurate description of the seller's
goods, including:
(i) Precious metal type or, if jewelry, the type of
jewelry.
(ii) Any other unique identifying marks, numbers or
letters. The description must be in an electronic format
established by the Office of Attorney General.
(2) The date that the seller's goods were received by
the secondhand dealer.
This information must be provided to the appropriate law
enforcement agency within 24 hours after entering into the
contract unless other arrangements are made between the
secondhand dealer and the law enforcement agency.
(d) Electronic files.--For every transaction, pictures of
the secondhand goods which are the subject of the transaction
must be available online for electronic viewing, via an Internet
website accessible by user name and password only, by a law
enforcement agency at no charge. In addition, the electronic
files must be searchable by a law enforcement agency for queries
concerning property descriptions, secondhand dealer transaction
information and the seller's personal identification, including
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address, state of residence and zip code.
(e) Record.--A secondhand dealer must maintain, for a period
of not less than two years, all information provided under
subsections (b) and (c) and all records of any transaction
between the dealer and seller in a form that is easily
retrievable upon request by a law enforcement agency.
(f) Information to law enforcement.--A secondhand dealer
must provide the appropriate law enforcement agency with an
electronic copy of the name, address, telephone number, driver's
license number or government-issued identification number and
issuing state of the person from whom the dealer purchased or
acquired the precious metals or jewelry.
(g) Verification.--
(1) If a seller fails to provide the information
required under subsection (b)(1) and (2), the secondhand
dealer may verify the identity and information of the seller
through a national provider of personal identification
verification services. Evidence from the personal
identification verification service must be maintained by the
secondhand dealer and available for review by a law
enforcement agency upon request.
(2) Alternatively, a secondhand dealer must give written
notice to the seller, by United States mail or e-mail, if an
e-mail address is provided by the seller, that information
otherwise required to be given by the seller under this
section has not been provided by the seller to the secondhand
dealer. Notice of the deficient information must be sent by
the secondhand dealer no later than ten days after the
transaction is received by the secondhand dealer. The
secondhand dealer must specify in the notice that:
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(i) The seller must provide the missing information
or must request the return of the property from the
secondhand dealer within 30 days after receiving notice
from the secondhand dealer.
(ii) The failure of the seller to provide the
missing information or request return of the property
within the applicable 30-day time period shall result in
abandonment of the seller's property under Article XIII.1
of the act of April 9, 1929 (P.L.343, No.176), known as
The Fiscal Code.
(3) If the seller fails to remedy the deficiency in
information or request return of the property within 30 days
after receiving the notice, the seller's property is deemed
abandoned and unclaimed property under the The Fiscal Code if
the property's true market value is greater than $50.
(4) Within 24 hours after the expiration of the 30-day
hold period for the property, the secondhand dealer must
notify the appropriate law enforcement agency of the
abandonment of the property by electronic transmission or by
sending a copy of the completed form authorized under this
chapter to the Office of Attorney General.
(h) Duties of secondhand dealer.--
(1) If there is probable cause that goods held by a
secondhand dealer are stolen, the law enforcement agency with
jurisdiction over the secondhand dealer may place a 90-day
written hold on the goods and may take possession of the
goods from the dealer during the 90-day hold period. The 90-
day hold period may be extended beyond 90 days by a court of
competent jurisdiction upon a finding of probable cause that
the property is stolen and further holding is necessary for
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the purpose of trial or to safeguard the property.
(2) If the secondhand dealer maintains possession of the
goods during any hold period, the secondhand dealer assumes
all responsibility, civil and criminal, for the safekeeping
of the property or evidence in question, including
responsibility for the actions of any employee of the dealer.
(3) While a hold order is in effect, the secondhand
dealer must, if in possession of the goods, release the
property subject to the hold order to the custody of a law
enforcement agency for use in a criminal investigation.
Release of the property to the law enforcement agency is not
considered a waiver or release of the secondhand dealer's
rights or interest in the property unless the secondhand
dealer is not owed restitution for the property.
(4) The property must be returned to the secondhand
dealer upon completion of the criminal proceeding unless the
court orders an alternative disposition or the secondhand
dealer is not due restitution for the property. When another
disposition is ordered, the court shall additionally order
the person from whom the secondhand dealer acquired the
property to pay restitution to the secondhand dealer in the
amount that the secondhand dealer paid for the property
together with reasonable attorney fees and costs.
(i) Action for replevin.--
(1) If the secondhand dealer contests the identification
or ownership of the property, the person alleging ownership
of the property may, if a timely report of the theft of the
goods was made to the proper authorities, bring an action for
replevin in a court of common pleas.
(2) The filing fees shall be waived by the clerk of the
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court and the service fees shall be waived by the sheriff.
The court shall award the prevailing party attorney fees and
costs. In addition, if the filing party prevails in the
replevin action, the court shall order payment of filing fees
to the clerk and service fees to the sheriff.
(3) Upon the filing of the petition, the court shall set
a hearing to be held at the earliest possible time. Upon
receipt of a petition for a writ by a secondhand dealer, the
dealer shall hold the property at issue until the court
determines the respective interests of the party.
(4) In addition to the civil petition for return remedy,
the Commonwealth may file a motion as part of a pending
criminal case related to the property. The court in a
criminal action has jurisdiction to determine ownership, to
order return or other disposition of the property, and to
order any appropriate restitution to any person. The order
must be entered upon hearing after proper notice has been
given to the secondhand dealer, the victim and the defendant
in the criminal case.
Section 502. Tendering payment.
Any payment by a mail-in secondhand precious metals dealer
resulting from the sale, purchase, consignment or trade of
precious metals or jewelry must be made to the person or entity
by check to a lawful bank account or via a money services
business licensed under the laws of this Commonwealth.
Section 503. Inspection of records and premises.
A mail-in secondhand precious metals dealer must allow a law
enforcement agency to inspect its business records, inventory
and premises during normal business hours to ensure compliance
with this chapter.
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Section 504. Holding period.
(a) General rule.--A mail-in secondhand precious metals
dealer may not sell, barter, exchange, alter, adulterate, use or
in any way dispose of goods purchased from a seller within ten
calendar days after the date payment is issued for the
acquisition of the goods.
(b) Records.--Records of the sale, purchase, consignment or
trade of precious metals or jewelry must be maintained by the
secondhand dealer for at least two years after the date of the
transaction.
Section 505. Penalties.
(a) Registration requirement.--Any mail-in secondhand
precious metals dealer not licensed by the Office of Attorney
General as a mail-in secondhand precious metals dealer, or who
fails to comply with this chapter, commits a misdemeanor of the
third degree for each completed transaction. If an officer or
corporation is convicted of or pleads nolo contendere to any
such offense, the officer or corporation may not operate
thereafter for one year as a mail-in secondhand precious metals
dealer within this Commonwealth.
(b) False statements.--Any person who knowingly gives false
personal identifying information to a mail-in secondhand
precious metals dealer, who provides a driver's license number
or government-issued identification number that does not belong
to the person or who makes any false statement with respect to
being of lawful age or the person's ownership of goods, and who
receives payment from the dealer commits:
(1) If the value of the money received is less than
$300, a felony of the third degree.
(2) If the value of the money received is $300 or more,
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a felony of the second degree.
Section 11. The act is amended by adding a chapter heading
to read:
CHAPTER 13
MISCELLANEOUS PROVISIONS
Section 12. Sections 11, 12 and 13 of the act are renumbered
to read:
Section [11] 1301. Severability.
If any provision of this act or the application thereof to
any person or circumstances is held invalid, such invalidity
shall not affect other provisions or applications of the act
which can be given effect without the invalid provision or
application and, to this end, the provisions of this act are
declared to be severable.
Section [12] 1302. Application.
This act shall not be enforced until appropriate regulations
are promulgated by the Attorney General and the Department of
Agriculture.
Section [13] 1303. Effective date.
This act shall take effect immediately.
Section 13. This act shall take effect immediately.
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