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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| HOUSE BILL |
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| INTRODUCED BY KORTZ, BELFANTI, CALTAGIRONE, FRANKEL, HORNAMAN, JOSEPHS, KULA, MANN, MARSHALL, McGEEHAN, MELIO, PASHINSKI, SIPTROTH AND VULAKOVICH, NOVEMBER 12, 2009 |
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| REFERRED TO COMMITTEE ON CONSUMER AFFAIRS, NOVEMBER 12, 2009 |
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| AN ACT |
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1 | Amending the act of February 24, 1984 (P.L.92, No.17), entitled |
2 | "An act regulating the purchase and sale of precious metals," |
3 | adding a short title and definitions; providing for mail-in |
4 | secondhand precious metals dealers; and making editorial |
5 | changes. |
6 | The General Assembly of the Commonwealth of Pennsylvania |
7 | hereby enacts as follows: |
8 | Section 1. The title and table of contents of the act of |
9 | February 24, 1984 (P.L.92, No.17), referred to as the Precious |
10 | Metal Sale Regulation Law, are amended to read: |
11 | AN ACT |
12 | Regulating the purchase and sale of precious metals; and |
13 | providing for mail-in secondhand precious metals dealers. |
14 | TABLE OF CONTENTS |
15 | Chapter 1. Preliminary Provisions |
16 | Section 101. Short title. |
17 | Section [1] 102. Definitions. |
18 | Chapter 3. Precious Metals Dealers |
19 | Section [2] 301. License required. |
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1 | Section [3] 302. Records of transactions. |
2 | Section [4] 303. Dealer's retention of precious metal and |
3 | availability for inspection. |
4 | Section [5] 304. Purchases from minors. |
5 | Section [6] 305. Posting of prices. |
6 | Section [7] 306. Scales and weighing devices. |
7 | Section [8] 307. Local ordinances. |
8 | Section [9] 308. Inspection of licensee. |
9 | Section [10] 309. Penalty. |
10 | Chapter 5. Mail-In Secondhand Precious Metals Dealers |
11 | Section 501. General provisions. |
12 | Section 502. Tendering payment. |
13 | Section 503. Inspection of records and premises. |
14 | Section 504. Holding period. |
15 | Section 505. Penalties. |
16 | Chapter 13. Miscellaneous Provisions |
17 | Section [11] 1301. Severability. |
18 | Section [12] 1302. Application. |
19 | Section [13] 1303. Effective date. |
20 | Section 2. The act is amended by adding a chapter heading: |
21 | CHAPTER 1 |
22 | PRELIMINARY PROVISIONS |
23 | Section 3. The act is amended by adding a section to read: |
24 | Section 101. Short title. |
25 | This act shall be known and may be cited as the Precious |
26 | Metals Sale Regulation Law. |
27 | Section 4. Section 1 of the act is renumbered and amended to |
28 | read: |
29 | Section [1] 102. Definitions. |
30 | The following words and phrases when used in this act shall |
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1 | have the meanings given to them in this section unless the |
2 | context clearly indicates otherwise: |
3 | "Dealer in precious metals." An individual, partnership, |
4 | association, corporation or business entity, who or which |
5 | purchases precious metals from the general public for resale or |
6 | refining or any individual who acts as agent for such |
7 | individual, partnership, association, corporation or business |
8 | entity for such purchase or purchases. Excluded from this |
9 | definition are financial institutions licensed under Federal or |
10 | State banking laws, the purchaser of precious metals who |
11 | purchases from a seller seeking a trade-in or allowance, the |
12 | manufacturers of jewelry or of other items composed, in whole or |
13 | in part, of gold, silver or platinum and the purchaser of |
14 | precious metals for his, her or its own use or ownership and not |
15 | for resale or refining. |
16 | "Gold." Any alloy of the element gold, ten karat or of |
17 | greater fineness. A karat is 1/24 part, by weight, of the alloy |
18 | of the metallic element gold. |
19 | "Jewelry." A personal ornament that contains precious metals |
20 | and may contain gemstones. |
21 | "Mail-in secondhand precious metals dealer" or "secondhand |
22 | dealer." A person or entity that: |
23 | (1) conducts business within this Commonwealth and that |
24 | contracts with other persons or entities to buy precious |
25 | metals or jewelry through an Internet website, the United |
26 | States mail or telemarketing; or |
27 | (2) conducts business within this Commonwealth and |
28 | regularly engages in the business of purchasing jewelry or |
29 | precious metals through the United States mail or Internet- |
30 | based transactions. |
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1 | "Platinum." Any alloy of the element platinum, 750/1000 or |
2 | more parts per thousand, by weight, of pure platinum. |
3 | "Precious metals." Items containing or being of gold, silver |
4 | or platinum, including, but not limited to, jewelry and silver |
5 | services, but excluding coins, ingots, bullion or photographic |
6 | film or any article containing less than 5% of gold, silver or |
7 | platinum by weight. |
8 | "Seller." A person or entity offering precious metals or |
9 | jewelry for purchase which belong solely to that person or |
10 | entity and having absolute authority to sell such goods. |
11 | "Silver." Any alloy of the element silver, 900/1000 or more |
12 | parts per thousand, by weight, of pure silver. |
13 | "Transaction." An event relating to the purchase of |
14 | secondhand precious metals or jewelry by a mail-in secondhand |
15 | precious metals dealer. |
16 | "Working days." Excludes Saturdays, Sundays and Federal or |
17 | State legal holidays. |
18 | Section 5. The act is amended by adding a chapter heading to |
19 | read: |
20 | CHAPTER 3 |
21 | PRECIOUS METALS DEALERS |
22 | Section 6. Sections 2, 3, 4, 5, 6 and 7 of the act are |
23 | renumbered to read: |
24 | Section [2] 301. License required. |
25 | (a) Dealer.--A dealer in precious metals shall obtain a |
26 | license from the sheriff of each and every county in which the |
27 | dealer purchases precious metals. |
28 | (b) Application form.--The application for such license |
29 | shall be on a form as prescribed in regulations promulgated by |
30 | the Attorney General. |
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1 | (c) License fee.--The license fee shall not exceed $50 per |
2 | year as set by the Attorney General. Such fee shall be paid into |
3 | the treasury of the county where the license is issued for the |
4 | use of the county. |
5 | (d) Duration of license.--The license shall be for one year. |
6 | (e) Application to be public record.--Such license |
7 | application shall be a public record available to the general |
8 | public for inspection. |
9 | Section [3] 302. Records of transactions. |
10 | (a) Dealers to keep record.--Every dealer in precious metals |
11 | shall keep a record of every transaction upon a form approved by |
12 | the Attorney General. The record shall include as a minimum: |
13 | (1) The name, age and address of the seller which must |
14 | be verified by said dealer, requiring proof of identity from |
15 | the seller sufficient to insure the accuracy of the |
16 | represented name and address of the seller. |
17 | (2) An accurate description of the property purchased, |
18 | including any serial number or other identifying marks or |
19 | symbols and the date and hour of the transaction. |
20 | (b) Record to be maintained.--Said record shall be |
21 | maintained by the dealer in precious metals for a period of one |
22 | year from the date of the transaction and shall be available for |
23 | inspection by any law enforcement official of the Federal |
24 | Government, the Commonwealth or any of its municipalities. |
25 | (c) Copy of record to district attorney.--A copy of every |
26 | record of transaction shall be delivered or mailed to the |
27 | district attorney of the county in which a purchase of precious |
28 | metals is made by the close of the next working day after the |
29 | day on which the metal was purchased. |
30 | (d) Copy of record to police department in lieu of district |
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1 | attorney.--The district attorney may authorize such records to |
2 | be delivered or mailed to the police department of the |
3 | municipality in which the precious metal was purchased in lieu |
4 | of delivery or mailing to the district attorney. |
5 | (e) Time and manner of keeping records.--The Attorney |
6 | General shall, by regulation, prescribe the time and manner in |
7 | which such records shall be maintained, the form of |
8 | identification which a dealer must require from the seller to |
9 | verify the seller's name and address and the person or persons |
10 | to whom such records shall be available. |
11 | Section [4] 303. Dealer's retention of precious metal and |
12 | availability for inspection. |
13 | (a) Precious metal to be retained for five days.--Each item |
14 | of precious metal purchased by a dealer in precious metals shall |
15 | be retained in unaltered condition for five full working days |
16 | after report of its purchase has been filed with the proper |
17 | district attorney or his designee. |
18 | (b) Precious metal to be available for inspection.--Such |
19 | item of precious metal shall be available for inspection, during |
20 | the five working days, by law enforcement officials of the |
21 | Federal Government, the Commonwealth or any of its |
22 | municipalities in the course of their law enforcement duties. A |
23 | search warrant shall not be required unless the inspection is |
24 | made during hours other than those when the dealer in precious |
25 | metals is open for business. |
26 | (c) Law enforcement officials to give notice when they |
27 | believe item was stolen.--If a law enforcement official has |
28 | probable cause to believe an item of precious metal has been |
29 | stolen, he may give written notice to the dealer in precious |
30 | metals. Upon receipt of such written notice, such dealer in |
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1 | precious metals shall retain the item in unaltered condition for |
2 | an additional seven days, unless the law enforcement officer in |
3 | writing recalls such notice. |
4 | (d) Court may order dealer to retain items.--Upon |
5 | application of the district attorney, any court of proper |
6 | jurisdiction, under its powers presently prescribed by law, may |
7 | order the dealer in precious metals to retain such item or items |
8 | of precious metal at such place and under such conditions as the |
9 | court may decree. |
10 | (e) Where items to be retained.--Each item of precious metal |
11 | to be retained, pursuant to this section, shall be retained |
12 | within the county of purchase at the location where purchased by |
13 | the dealer in precious metals, unless authorized in writing by |
14 | the district attorney or his designee to be retained elsewhere. |
15 | Section [5] 304. Purchases from minors. |
16 | The dealer in precious metals shall require any minor seeking |
17 | to sell precious metals to produce written authority of a |
18 | parent, guardian or person in loco parentis authorizing the sale |
19 | of such precious metals. Such authorization shall give the name |
20 | and address of authorizing person. The dealer in precious metals |
21 | shall verify that such sale is authorized by inquiry of such |
22 | parent, guardian or person in loco parentis. Minors shall be |
23 | required to wait three full working days before receiving |
24 | payment from the sale of precious metals. |
25 | Section [6] 305. Posting of prices. |
26 | Prices for the purchase of precious metals shall be posted by |
27 | the dealer in precious metals in compliance with rules and |
28 | regulations promulgated or to be promulgated by the Department |
29 | of Agriculture. |
30 | Section [7] 306. Scales and weighing devices. |
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1 | (a) Rules and regulations of Department of Agriculture.-- |
2 | Scales and other weighing or measuring devices used by dealers |
3 | in precious metals shall be in accordance with rules and |
4 | regulations promulgated or to be promulgated by the Department |
5 | of Agriculture. |
6 | (b) Supervision and inspection of scales.--Supervision and |
7 | inspection of such scales and weighing or measuring devices |
8 | shall be made by the appropriate State or municipal officers as |
9 | authorized by law or by the Department of Agriculture. |
10 | Section 7. Section 8 of the act is renumbered and amended to |
11 | read: |
12 | Section [8] 307. Local ordinances. |
13 | This [act] chapter shall not supersede or preclude the |
14 | adoption of any municipal ordinance applicable to dealers in |
15 | precious metals provided that such municipal ordinance meets the |
16 | minimum requirements of this act. |
17 | Section 8. Section 9 of the act is renumbered to read: |
18 | Section [9] 308. Inspection of licensee. |
19 | The acceptance of a license by a dealer in precious metals |
20 | implies consent to inspections of his, her or its premises by |
21 | law enforcement officials and officials authorized to enforce |
22 | laws and regulations pertaining to weights and measures. Such |
23 | inspections shall pertain to items of precious metals and to |
24 | scales and weighing or measuring devices. |
25 | Section 9. Section 10 of the act is renumbered and amended |
26 | to read: |
27 | Section [10] 309. Penalty. |
28 | (a) Unlicensed dealers.--The purchase of an item of precious |
29 | metal by an unlicensed dealer in precious metals shall |
30 | constitute a violation of this act and the dealer shall be |
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1 | guilty of a misdemeanor of the third degree. |
2 | (b) Licensed dealers.--Any licensed dealer in precious |
3 | metals who violates any provisions of this [act] chapter shall |
4 | be guilty of a misdemeanor of the third degree. |
5 | (c) Revocation of license and ineligibility.--Any |
6 | individual, partnership, association, corporation or business |
7 | entity violating any provisions of this [act] chapter shall, |
8 | upon conviction, in addition to the penalties set forth in |
9 | subsections (a) and (b) hereof, suffer immediately revocation of |
10 | any existing license issued pursuant to the provisions of this |
11 | act and shall be ineligible to apply for a dealer's license |
12 | under this [act] chapter for a period of five years thereafter. |
13 | Section 10. The act is amended by adding a chapter to read: |
14 | CHAPTER 5 |
15 | MAIL-IN SECONDHAND PRECIOUS METALS DEALERS |
16 | Section 501. General provisions. |
17 | (a) Licensure.--A mail-in secondhand precious metals dealer |
18 | may not conduct business under this chapter without being |
19 | licensed by the Attorney General in accordance with the |
20 | licensure requirements set forth in section 301. License fees |
21 | shall be remitted to the Office of Attorney General. The Office |
22 | of Attorney General shall regularly transmit to each sheriff's |
23 | office a list of licensees. |
24 | (b) Payment.--A secondhand dealer may not remit payment to a |
25 | seller unless the seller has provided the following information: |
26 | (1) The seller's name, address, telephone number and e- |
27 | mail address, if available. |
28 | (2) The seller's driver's license number and issuing |
29 | state or other government-issued identification number. |
30 | (3) A sworn statement made by the seller that the seller |
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1 | is of lawful age and that the driver's license number or |
2 | other government-issued identification number and other |
3 | identifying information provided by the seller is true and |
4 | correct and that the seller is the lawful owner of the goods |
5 | with absolute authority to sell the goods. The statement must |
6 | include the following language: "I declare under penalty of |
7 | perjury that the foregoing is true and correct." |
8 | (c) Transaction record.--For every transaction, the |
9 | secondhand dealer must keep a record of the following: |
10 | (1) A complete and accurate description of the seller's |
11 | goods, including: |
12 | (i) Precious metal type or, if jewelry, the type of |
13 | jewelry. |
14 | (ii) Any other unique identifying marks, numbers or |
15 | letters. The description must be in an electronic format |
16 | established by the Office of Attorney General. |
17 | (2) The date that the seller's goods were received by |
18 | the secondhand dealer. |
19 | This information must be provided to the appropriate law |
20 | enforcement agency within 24 hours after entering into the |
21 | contract unless other arrangements are made between the |
22 | secondhand dealer and the law enforcement agency. |
23 | (d) Electronic files.--For every transaction, pictures of |
24 | the secondhand goods which are the subject of the transaction |
25 | must be available online for electronic viewing, via an Internet |
26 | website accessible by user name and password only, by a law |
27 | enforcement agency at no charge. In addition, the electronic |
28 | files must be searchable by a law enforcement agency for queries |
29 | concerning property descriptions, secondhand dealer transaction |
30 | information and the seller's personal identification, including |
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1 | address, state of residence and zip code. |
2 | (e) Record.--A secondhand dealer must maintain, for a period |
3 | of not less than two years, all information provided under |
4 | subsections (b) and (c) and all records of any transaction |
5 | between the dealer and seller in a form that is easily |
6 | retrievable upon request by a law enforcement agency. |
7 | (f) Information to law enforcement.--A secondhand dealer |
8 | must provide the appropriate law enforcement agency with an |
9 | electronic copy of the name, address, telephone number, driver's |
10 | license number or government-issued identification number and |
11 | issuing state of the person from whom the dealer purchased or |
12 | acquired the precious metals or jewelry. |
13 | (g) Verification.-- |
14 | (1) If a seller fails to provide the information |
15 | required under subsection (b)(1) and (2), the secondhand |
16 | dealer may verify the identity and information of the seller |
17 | through a national provider of personal identification |
18 | verification services. Evidence from the personal |
19 | identification verification service must be maintained by the |
20 | secondhand dealer and available for review by a law |
21 | enforcement agency upon request. |
22 | (2) Alternatively, a secondhand dealer must give written |
23 | notice to the seller, by United States mail or e-mail, if an |
24 | e-mail address is provided by the seller, that information |
25 | otherwise required to be given by the seller under this |
26 | section has not been provided by the seller to the secondhand |
27 | dealer. Notice of the deficient information must be sent by |
28 | the secondhand dealer no later than ten days after the |
29 | transaction is received by the secondhand dealer. The |
30 | secondhand dealer must specify in the notice that: |
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1 | (i) The seller must provide the missing information |
2 | or must request the return of the property from the |
3 | secondhand dealer within 30 days after receiving notice |
4 | from the secondhand dealer. |
5 | (ii) The failure of the seller to provide the |
6 | missing information or request return of the property |
7 | within the applicable 30-day time period shall result in |
8 | abandonment of the seller's property under Article XIII.1 |
9 | of the act of April 9, 1929 (P.L.343, No.176), known as |
10 | The Fiscal Code. |
11 | (3) If the seller fails to remedy the deficiency in |
12 | information or request return of the property within 30 days |
13 | after receiving the notice, the seller's property is deemed |
14 | abandoned and unclaimed property under the The Fiscal Code if |
15 | the property's true market value is greater than $50. |
16 | (4) Within 24 hours after the expiration of the 30-day |
17 | hold period for the property, the secondhand dealer must |
18 | notify the appropriate law enforcement agency of the |
19 | abandonment of the property by electronic transmission or by |
20 | sending a copy of the completed form authorized under this |
21 | chapter to the Office of Attorney General. |
22 | (h) Duties of secondhand dealer.-- |
23 | (1) If there is probable cause that goods held by a |
24 | secondhand dealer are stolen, the law enforcement agency with |
25 | jurisdiction over the secondhand dealer may place a 90-day |
26 | written hold on the goods and may take possession of the |
27 | goods from the dealer during the 90-day hold period. The 90- |
28 | day hold period may be extended beyond 90 days by a court of |
29 | competent jurisdiction upon a finding of probable cause that |
30 | the property is stolen and further holding is necessary for |
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1 | the purpose of trial or to safeguard the property. |
2 | (2) If the secondhand dealer maintains possession of the |
3 | goods during any hold period, the secondhand dealer assumes |
4 | all responsibility, civil and criminal, for the safekeeping |
5 | of the property or evidence in question, including |
6 | responsibility for the actions of any employee of the dealer. |
7 | (3) While a hold order is in effect, the secondhand |
8 | dealer must, if in possession of the goods, release the |
9 | property subject to the hold order to the custody of a law |
10 | enforcement agency for use in a criminal investigation. |
11 | Release of the property to the law enforcement agency is not |
12 | considered a waiver or release of the secondhand dealer's |
13 | rights or interest in the property unless the secondhand |
14 | dealer is not owed restitution for the property. |
15 | (4) The property must be returned to the secondhand |
16 | dealer upon completion of the criminal proceeding unless the |
17 | court orders an alternative disposition or the secondhand |
18 | dealer is not due restitution for the property. When another |
19 | disposition is ordered, the court shall additionally order |
20 | the person from whom the secondhand dealer acquired the |
21 | property to pay restitution to the secondhand dealer in the |
22 | amount that the secondhand dealer paid for the property |
23 | together with reasonable attorney fees and costs. |
24 | (i) Action for replevin.-- |
25 | (1) If the secondhand dealer contests the identification |
26 | or ownership of the property, the person alleging ownership |
27 | of the property may, if a timely report of the theft of the |
28 | goods was made to the proper authorities, bring an action for |
29 | replevin in a court of common pleas. |
30 | (2) The filing fees shall be waived by the clerk of the |
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1 | court and the service fees shall be waived by the sheriff. |
2 | The court shall award the prevailing party attorney fees and |
3 | costs. In addition, if the filing party prevails in the |
4 | replevin action, the court shall order payment of filing fees |
5 | to the clerk and service fees to the sheriff. |
6 | (3) Upon the filing of the petition, the court shall set |
7 | a hearing to be held at the earliest possible time. Upon |
8 | receipt of a petition for a writ by a secondhand dealer, the |
9 | dealer shall hold the property at issue until the court |
10 | determines the respective interests of the party. |
11 | (4) In addition to the civil petition for return remedy, |
12 | the Commonwealth may file a motion as part of a pending |
13 | criminal case related to the property. The court in a |
14 | criminal action has jurisdiction to determine ownership, to |
15 | order return or other disposition of the property, and to |
16 | order any appropriate restitution to any person. The order |
17 | must be entered upon hearing after proper notice has been |
18 | given to the secondhand dealer, the victim and the defendant |
19 | in the criminal case. |
20 | Section 502. Tendering payment. |
21 | Any payment by a mail-in secondhand precious metals dealer |
22 | resulting from the sale, purchase, consignment or trade of |
23 | precious metals or jewelry must be made to the person or entity |
24 | by check to a lawful bank account or via a money services |
25 | business licensed under the laws of this Commonwealth. |
26 | Section 503. Inspection of records and premises. |
27 | A mail-in secondhand precious metals dealer must allow a law |
28 | enforcement agency to inspect its business records, inventory |
29 | and premises during normal business hours to ensure compliance |
30 | with this chapter. |
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1 | Section 504. Holding period. |
2 | (a) General rule.--A mail-in secondhand precious metals |
3 | dealer may not sell, barter, exchange, alter, adulterate, use or |
4 | in any way dispose of goods purchased from a seller within ten |
5 | calendar days after the date payment is issued for the |
6 | acquisition of the goods. |
7 | (b) Records.--Records of the sale, purchase, consignment or |
8 | trade of precious metals or jewelry must be maintained by the |
9 | secondhand dealer for at least two years after the date of the |
10 | transaction. |
11 | Section 505. Penalties. |
12 | (a) Registration requirement.--Any mail-in secondhand |
13 | precious metals dealer not licensed by the Office of Attorney |
14 | General as a mail-in secondhand precious metals dealer, or who |
15 | fails to comply with this chapter, commits a misdemeanor of the |
16 | third degree for each completed transaction. If an officer or |
17 | corporation is convicted of or pleads nolo contendere to any |
18 | such offense, the officer or corporation may not operate |
19 | thereafter for one year as a mail-in secondhand precious metals |
20 | dealer within this Commonwealth. |
21 | (b) False statements.--Any person who knowingly gives false |
22 | personal identifying information to a mail-in secondhand |
23 | precious metals dealer, who provides a driver's license number |
24 | or government-issued identification number that does not belong |
25 | to the person or who makes any false statement with respect to |
26 | being of lawful age or the person's ownership of goods, and who |
27 | receives payment from the dealer commits: |
28 | (1) If the value of the money received is less than |
29 | $300, a felony of the third degree. |
30 | (2) If the value of the money received is $300 or more, |
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1 | a felony of the second degree. |
2 | Section 11. The act is amended by adding a chapter heading |
3 | to read: |
4 | CHAPTER 13 |
5 | MISCELLANEOUS PROVISIONS |
6 | Section 12. Sections 11, 12 and 13 of the act are renumbered |
7 | to read: |
8 | Section [11] 1301. Severability. |
9 | If any provision of this act or the application thereof to |
10 | any person or circumstances is held invalid, such invalidity |
11 | shall not affect other provisions or applications of the act |
12 | which can be given effect without the invalid provision or |
13 | application and, to this end, the provisions of this act are |
14 | declared to be severable. |
15 | Section [12] 1302. Application. |
16 | This act shall not be enforced until appropriate regulations |
17 | are promulgated by the Attorney General and the Department of |
18 | Agriculture. |
19 | Section [13] 1303. Effective date. |
20 | This act shall take effect immediately. |
21 | Section 13. This act shall take effect immediately. |
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