STATE OF NEW YORK
________________________________________________________________________
6444
2025-2026 Regular Sessions
IN SENATE
March 14, 2025
___________
Introduced by Sen. HARCKHAM -- read twice and ordered printed, and when
printed to be committed to the Committee on Consumer Protection
AN ACT to amend the general business law, in relation to recordkeeping
requirements for second-hand dealers and pawnbrokers
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 41 of the general business law, as amended by chap-
2 ter 669 of the laws of 2022, is amended to read as follows:
3 § 41. Licenses, how obtained; penalty for carrying on business without
4 license. The mayor or such local licensing authority may from time to
5 time grant, under [his or her] their hand and the official seal of [his
6 or her] their office, to such citizens, or noncitizens lawfully admitted
7 for permanent residence in the United States, as [he or she] such mayor
8 or such local licensing authority shall deem proper and who shall
9 produce to [him] such mayor or such local licensing authority satisfac-
10 tory evidence of their good character, a license authorizing such person
11 to carry on the business of a collateral loan broker, which license
12 shall designate the house in which such person shall carry on said busi-
13 ness, and no person, corporation, partnership or firm shall carry on the
14 business of a collateral loan broker without being duly licensed, nor in
15 any other house than the one designated in said license, under a penalty
16 of one hundred dollars for each day [he, she or they] such person,
17 corporation, partnership or firm shall exercise or carry on said busi-
18 ness without such license or at any other house than the one so desig-
19 nated. A collateral loan broker may conduct business via the internet
20 provided the requirements of this chapter are satisfied. Any person
21 receiving such license shall pay therefor the sum of five hundred
22 dollars for the use of the city yearly where such business is to be
23 conducted in a city with a population of more than one million persons,
24 and where the business is to be conducted elsewhere the fee for such
25 license shall not exceed two hundred fifty dollars yearly, and every
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD10927-01-5
S. 6444 2
1 such license shall expire one year from the date thereof, and may be
2 renewed on application to the mayor or local licensing authority each
3 and every year on payment of the same sum and upon performance of the
4 other conditions herein contained. Every person so licensed shall, at
5 the time of receiving such license, file with the mayor or such local
6 licensing authority granting the same a bond to the local authorities,
7 to be executed by the person so licensed and by two responsible sure-
8 ties, in the penal sum of ten thousand dollars, to be approved by such
9 mayor or local licensing authority, which bond shall be conditioned for
10 the faithful performance of the duties and obligations pertaining to the
11 business so licensed, and the mayor or such local licensing authority
12 shall have full power and authority to revoke such license for cause.
13 § 2. Section 43 of the general business law, as amended by chapter 867
14 of the laws of 1986, is amended to read as follows:
15 § 43. Certain entries to be made [in book]; electronic record. Every
16 such collateral loan broker shall keep [a book in which shall be fairly
17 written, at the time of such loan, an account and description of the
18 goods, articles or things pawned or pledged, the amount of money loaned
19 thereon, the time of pledging the same, the rate of interest to be paid
20 on such loan, the name and residence of the person pawning or pledging
21 the said goods, articles or things and a notation of whether the pledgor
22 claims to be the owner, consignee or agent of the owner] an electronic
23 record pursuant to the provisions of article five-B of this chapter.
24 § 3. Section 45 of the general business law, as amended by chapter 321
25 of the laws of 1983, is amended to read as follows:
26 § 45. [Book] Records to be open to inspection. The said [book] elec-
27 tronic record and any and all other [books and] records regularly kept
28 by such collateral loan broker shall at all reasonable times be open to
29 the inspection of the attorney general, the state comptroller, the mayor
30 or local licensing authority, all judges of the criminal courts, the
31 superintendent of police, police inspectors, captains of police and
32 police justices of such cities, or any or either of them, or of any
33 person who shall be duly authorized in writing for that purpose by any
34 or either of them, and who shall exhibit such written authority to such
35 collateral loan broker. Such power of inspection shall be exercised by
36 the aforementioned authorized parties, or their authorized agents, for
37 the sole purpose of verification of compliance with state and local
38 statutory and regulatory requirements, inclusive of the completeness and
39 accuracy of the licensee's records including timeliness of entry. Said
40 verification may include an examination of not more than the last twenty
41 items pledged and may include the physical examination of each such
42 pledge and the corresponding record, including photographic record, if
43 any. The mayor or the licensing authority of any local governing body,
44 the state comptroller, the attorney general and any person duly author-
45 ized by them shall have the power to administer oaths and to examine
46 under oath any such collateral loan broker or any officer, or agent, of
47 such collateral loan broker and any other person having custody or
48 control of such [books and] records. Such [books and] records shall be
49 retained in the possession of the collateral loan broker, in good condi-
50 tion and in an orderly fashion for at least a period of six years.
51 Nothing herein shall be construed to impede the use of warrants, subpoe-
52 nas or other lawful process respecting items pledged and records
53 pertaining thereto, provided that said warrants, subpoenas or other
54 lawful process are predicated upon reasonable suspicion of unlawful
55 conduct.
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1 § 4. The second undesignated paragraph of section 47 of the general
2 business law, as added by chapter 534 of the laws of 2007, is amended to
3 read as follows:
4 A collateral loan broker engaged in the purchase or sale of second-
5 hand articles, other than pledges or pawn tickets, shall comply with
6 state and local laws or regulations governing dealers in second-hand
7 articles. A collateral loan broker engaged in the purchase of second-
8 hand articles shall provide the seller a receipt setting forth the item
9 or items purchased and the purchase price for each item. Additionally,
10 the receipt shall include a notice advising the seller of the option to
11 cancel the transaction within five business days or convert the sale of
12 jewelry, watches, precious stones, precious metals and coins to a loan
13 within fourteen days of the sale in accordance with this section.
14 § 5. The general business law is amended by adding a new article 5-B
15 to read as follows:
16 ARTICLE 5-B
17 RECORDKEEPING REQUIREMENTS FOR SECOND-HAND DEALERS AND PAWNBROKERS
18 Section 57. Reports to the secretary of state.
19 57-a. Record of purchases and sales.
20 57-b. Electronic reporting to the secretary of state.
21 57-c. Penalties.
22 § 57. Reports to the secretary of state. Every dealer in second-hand
23 articles who deals in the purchase or sale of any second-hand manufac-
24 tured article comprised wholly or in part of gold, silver, platinum, or
25 other precious metals, or deals in the purchase or sale of any old gold,
26 silver, platinum or other precious metals, or deals in the purchase of
27 articles or things comprised of gold, silver, platinum or other precious
28 metals for the purpose of melting or refining, or deals in the purchase
29 or sale of used electrical appliances excluding kitchen appliances, or
30 deals in the purchase or sale of any used electronic equipment, comput-
31 ers or component parts of electronic equipment or computers, shall make
32 available to the secretary of state the records required to be kept
33 pursuant to paragraphs (a) and (d) of subdivision one of section fifty-
34 seven-a of this article with respect to such transactions in a manner
35 specified by the secretary of state for the New York state department of
36 state by rule and regulation, which may include the real-time sharing or
37 accessing of such records in an electronic format and/or through use of
38 an internet website designated by the secretary of state. Sharing,
39 accessing and reporting provisions set forth in this section shall not
40 be required in the absence of a local law requiring the same. Nothing
41 herein shall be construed to impede the use of warrants, subpoenas or
42 other lawful process respecting items purchased and records pertaining
43 thereto, provided that said warrants, subpoenas or other lawful process
44 are predicated upon reasonable suspicion of unlawful conduct. A second
45 hand dealer may conduct business via the internet provided the require-
46 ments of this chapter are satisfied.
47 § 57-a. Record of purchases and sales. 1. Every dealer in second-hand
48 articles who deals in the purchase of any second-hand manufactured arti-
49 cle composed wholly or in part of gold, silver, platinum, or other
50 precious metals, or deals in the purchase or sale of any old gold,
51 silver, platinum or other precious metals, or deals in the purchase of
52 articles or things comprised of gold, silver, platinum or other precious
53 metals for the purpose of melting or refining, or deals in the purchase
54 or sale of used electrical appliances excluding kitchen appliances, or
55 deals in the purchase or sale of any used electronic equipment, comput-
56 ers, or mobile phones, or component parts of electronic equipment or
S. 6444 4
1 computers, shall with respect to such transactions create an electronic
2 record in English, in a manner to be specified by the secretary of state
3 by rule or regulation. Such electronic record may include the real-time
4 sharing or accessing of the information specified in paragraphs (a) and
5 (d) of this subdivision in an electronic format and/or through use of an
6 internet website designated by the secretary of state. Such electronic
7 record shall be retained for a minimum period of six years from the date
8 of purchase. Such electronic record shall be limited to the following
9 information, provided in a format or in accordance with specifications
10 as provided by rule or regulation of the secretary of state:
11 (a) The date, time, location and type of transaction;
12 (b) The name of the individual conducting the transaction for the
13 dealer;
14 (c) Identifying information regarding the person offering property
15 purchased by the dealer, including name, address, phone number, type of
16 identification utilized, identification number, expiration date of iden-
17 tification, date of birth, sex, race or ethnicity, distinguishing marks,
18 and a digital photograph or scanned copy of identification utilized and
19 a signature;
20 (d) An accurate description of each article purchased, including type
21 of article, manufacturer, make, model number, serial number, interna-
22 tional mobile equipment identifier, electronic serial number, mobile
23 equipment identifier, inscriptions or distinguishing marks, and one or
24 more digital photographs reasonably capturing the likeness of the arti-
25 cle, provided however that no photographs shall be required for fungible
26 items.
27 2. A dealer in second-hand articles subject to the provisions of
28 subdivision one of this section shall acquire and maintain in good work-
29 ing order the electronic equipment necessary to create and maintain the
30 electronic records required by this section, including but not limited
31 to a computer with internet connection, an electronic signature pad and
32 a digital camera utilizing a file format designated by the secretary of
33 state.
34 3. The records required by this section, shall be open to the
35 inspection of any police officer, the secretary of state or any depart-
36 mental inspector, any judge of a criminal court, or any person duly
37 authorized in writing for such purposes by the secretary of state or by
38 any judge of a criminal court, who shall exhibit such written authority
39 to the dealer. Such records shall also be open to the inspection of any
40 official or other person identified in, or duly authorized in writing
41 pursuant to, any other applicable state or local law. Such power of
42 inspection shall be exercised by the aforementioned authorized parties,
43 or their authorized agents, for the sole purpose of verification of
44 compliance with state and local statutory and regulatory requirements,
45 inclusive of the completeness and accuracy of the licensee's records
46 including timeliness of entry. Said verification may include an exam-
47 ination of not more than the last twenty items purchased and may include
48 the physical examination of each such item and the corresponding record
49 including photographic record. Such records shall be retained in the
50 possession of the second-hand dealer, in good condition and in an order-
51 ly fashion for at least a period of six years. Nothing herein shall be
52 construed to impede the use of warrants, subpoenas or other lawful proc-
53 ess respecting items purchased and records pertaining thereto, provided
54 that said warrants, subpoenas or other lawful process are predicated
55 upon reasonable suspicion of unlawful conduct.
S. 6444 5
1 4. Notwithstanding any local law and ordinances to the contrary and
2 except as otherwise provided in this chapter, other state or federal
3 law, second-hand dealers shall not be required to copy, create, main-
4 tain, transmit or make available, electronically or otherwise, any
5 records of purchases or sale transactions.
6 § 57-b. Electronic reporting to the secretary of state. 1. Every pawn-
7 broker, shall make available to the secretary of state the records
8 required to be kept pursuant to paragraphs (a), (d) and (e) of subdivi-
9 sion two of this section, in a manner to be specified by the secretary
10 of state by rule or regulation, which may include the real-time sharing
11 or accessing of such records in an electronic format and/or through use
12 of an internet website designated by the secretary of state.
13 2. Every pawnbroker shall create at the time of transaction an elec-
14 tronic record in English, in a manner to be specified by the secretary
15 of state by rule or regulation, which may include the use of an internet
16 website designated by the secretary of state, of every transaction in
17 which goods, articles or things, or any part thereof, are pawned,
18 pledged or redeemed in the course of business of such pawnbroker. Shar-
19 ing, accessing and reporting provisions specified herein shall not be
20 required in the absence of a local law requiring the same. In no event
21 shall information be subject to sharing, accessing or reporting except-
22 ing information required to be reported pursuant to paragraphs (a), (d)
23 and (e) of this subdivision. Such electronic record shall be retained
24 for a minimum period of six years from the date of the transaction. Such
25 electronic record shall be limited to the following information,
26 provided in a format or in accordance with specifications as provided by
27 rule or regulation of the secretary of state:
28 (a) The date, time, location and type of transaction;
29 (b) The name of the individual conducting the transaction for the
30 pawnbroker;
31 (c) Identifying information regarding the pledgor, including name,
32 address, phone number, type of identification utilized, identification
33 number, expiration date of identification, a signature, date of birth,
34 sex, height, weight, eye color, hair color, race or ethnicity, distin-
35 guishing marks, digital photograph or scanned copy of identification
36 utilized, and whether the pledgor is the owner, consignee or agent of
37 the owner;
38 (d) An accurate description of each article pawned or pledged, includ-
39 ing type of article, manufacturer, make, model number, serial number,
40 international mobile equipment identifier, electronic serial number,
41 mobile equipment identifier, inscriptions or distinguishing marks, and
42 one or more digital photographs reasonably capturing the likeness of the
43 article, provided however that no photographs shall be required for
44 fungible items;
45 (e) The pledge number of the pawn ticket;
46 (f) The amount loaned or advanced thereon and the rate of interest to
47 be paid on such loan or advance.
48 3. The pawnbroker shall acquire and maintain in good working order the
49 electronic equipment necessary to create and maintain the electronic
50 records required by this section, including but not limited to a comput-
51 er with internet connection, an electronic signature pad and a digital
52 camera utilizing a file format designated by the secretary of state.
53 4. The electronic records required by this section shall be open to
54 inspection pursuant to section forty-five of this chapter.
55 5. Notwithstanding any local law and ordinances to the contrary and
56 except as provided in this chapter, other state or federal law, collat-
S. 6444 6
1 eral loan brokers shall not be required to copy, create, maintain, tran-
2 smit or make available, electronically or otherwise, any records of
3 pledges, purchases, foreclosures or sale transactions.
4 6. In addition to any other applicable penalty or sanction, any person
5 who violates any of the provisions of this section or rules promulgated
6 thereunder shall be subject to the penalties set forth in section
7 fifty-seven-c of this article.
8 § 57-c. Penalties. 1. Except as otherwise specifically provided,
9 any person who violates any provision of this article or any regulation
10 or rule promulgated thereunder shall, upon conviction thereof, be
11 punished for each violation by a fine of not less than twenty-five
12 dollars nor more than five hundred dollars, or by imprisonment not
13 exceeding fifteen days, or both; and any such person shall be
14 subject also to a civil penalty in the sum of one hundred dollars for
15 each violation, to be recovered in a civil action.
16 2. The attorney general is authorized to bring an injunction proceed-
17 ing to restrain or enjoin any violation of this article.
18 § 6. This act shall take effect on the one hundred eightieth day after
19 it shall have become a law. Effective immediately, the addition, amend-
20 ment and/or repeal of any rule or regulation necessary for the imple-
21 mentation of this act on its effective date are authorized to be made
22 and completed on or before such effective date.
