S05689 Summary:

BILL NOS05689
 
SAME ASNo Same As
 
SPONSORPARKER
 
COSPNSR
 
MLTSPNSR
 
Add Art 13-C §§239-d - 239-k, Gen Bus L
 
Requires the registration of mail-in second-hand precious metals dealers with the department of state; regulates the conduct of the business thereof.
Go to top    

S05689 Actions:

BILL NOS05689
 
03/13/2023REFERRED TO CONSUMER PROTECTION
01/03/2024REFERRED TO CONSUMER PROTECTION
Go to top

S05689 Committee Votes:

Go to top

S05689 Floor Votes:

There are no votes for this bill in this legislative session.
Go to top

S05689 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          5689
 
                               2023-2024 Regular Sessions
 
                    IN SENATE
 
                                     March 13, 2023
                                       ___________
 
        Introduced  by  Sen.  PARKER -- 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  mail-in
          second-hand precious metals dealers
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. The general business law is amended by adding a new article
     2  13-C to read as follows:
     3                                ARTICLE 13-C
     4                        MAIL-IN SECOND-HAND PRECIOUS
     5                               METALS DEALERS
     6  Section 239-d. Definitions.
     7          239-e. Application of article.
     8          239-f. Registration, transaction and recordkeeping.
     9          239-g. Tendering payment.
    10          239-h. Inspection of records and premises.
    11          239-i. Holding period.
    12          239-j. Penalties.
    13          239-k. Powers of the department.
    14    § 239-d. Definitions. As used in this article:
    15    1. "Department" means the department of state.
    16    2. "Jewelry" means a personal ornament that contains a precious  metal
    17  and may contain a gemstone or gemstones.
    18    3.  "Mail-in  second-hand  precious metals dealer" means any person or
    19  entity that:
    20    (a) conducts business within this state,  that  contracts  with  other
    21  persons  or entities to buy precious metals or jewelry through an inter-
    22  net website, the United States mail or telemarketing; or
    23    (b) conducts business within this state, that regularly engages in the
    24  business of purchasing jewelry or precious  metals  through  the  United
    25  States mail or internet based transactions.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD07434-01-3

        S. 5689                             2
 
     1    4.  "Precious  metal"  means  any  item containing any gold, silver or
     2  platinum, or any combination thereof.
     3    5.  "Seller"  means  any  person or entity offering precious metals or
     4  jewelry for sale, which belong solely to such person or entity and which
     5  has absolute authority to sell such goods.
     6    6. "Transaction" means any event relating to the sale and purchase  of
     7  second-hand precious metals or jewelry by a mail-in second-hand precious
     8  metals dealer.
     9    § 239-e. Application of article. This article shall not apply to:
    10    1.  any  person  or entity that is available to the public for walk-in
    11  sales; or
    12    2. the purchase, consignment or trade of second-hand  precious  metals
    13  or jewelry between second-hand precious metals dealers.
    14    §  239-f.  Registration,  transaction and recordkeeping. 1. No mail-in
    15  second-hand precious metals dealer shall conduct business unless  it  is
    16  registered with the department pursuant to this article.
    17    2.  No  mail-in second-hand precious metals dealer shall remit payment
    18  to a seller unless the seller has provided such dealer with:
    19    (a) the seller's name, address, telephone number and  electronic  mail
    20  address, if available;
    21    (b)  the  seller's  driver's  license number and issuing state, or any
    22  other government issued identification number; and
    23    (c) A sworn statement made by the seller  that  the  driver's  license
    24  number  or other government issued identification number provided by the
    25  seller is true and accurate, and that the seller is the true and  lawful
    26  owner  of  the  goods  sold.  Such statement shall include the following
    27  language: "I declare under the penalty of perjury that the foregoing  is
    28  true and accurate."
    29     3. For every transaction, a mail-in second-hand precious metals deal-
    30  er shall retain a record of the following:
    31    (a) A complete and accurate description of the seller's goods, includ-
    32  ing:
    33    (i) precious metal type or, if jewelry, the type of jewelry, and
    34    (ii) any other unique identifying marks, numbers or letters.
    35    Such  description  shall  be  in such an electronic format as shall be
    36  determined by the secretary of state; and
    37    (b) The date that the seller's goods  were  received  by  the  mail-in
    38  second-hand precious metals dealer.
    39    The information required by this subdivision shall be transmitted to a
    40  law  enforcement  agency  having  jurisdiction in the municipality where
    41  such dealer is situate within twenty-four hours after entering into  the
    42  transaction.
    43    4.  Every  mail-in  second-hand precious metals dealer shall maintain,
    44  for not less than two years, all information received pursuant to subdi-
    45  visions two and three of this section in a form that is easily retrieva-
    46  ble upon the request of any law enforcement agency.
    47    5. Upon request from a law enforcement agency, a  mail-in  second-hand
    48  precious metals dealer shall provide such agency with an electronic copy
    49  of  all  information on any seller that such dealer is required to main-
    50  tain pursuant to subdivisions two and three of this section.
    51    § 239-g. Tendering payment. Every payment  by  a  mail-in  second-hand
    52  precious metals dealer resulting from the sale, purchase, consignment or
    53  trade  of  precious  metals  or jewelry shall be made to the seller by a
    54  check or money order.
    55    § 239-h. Inspection of records and premises. Every mail-in second-hand
    56  precious metals dealer shall allow a law enforcement agency  to  inspect

        S. 5689                             3

     1  its business records, inventory and business premise during normal busi-
     2  ness hours.
     3    § 239-i. Holding period. No mail-in second-hand precious metals dealer
     4  shall  sell,  barter,  exchange, alter, adulterate, use or in any manner
     5  dispose of goods purchased from a seller within ten calendar days of the
     6  date of payment for such goods.
     7    § 239-j. Penalties. 1. Any person  acting  as  a  mail-in  second-hand
     8  precious metals dealer who is not registered as such with the department
     9  or  any  mail-in, second-hand precious metals dealer  which violates any
    10  provision of this article shall be guilty of a class E felony and  shall
    11  be prohibited from acting as a mail-in second-hand precious metals deal-
    12  er for not less than one year.
    13    2.  Any  seller  who knowingly provides false information to a mail-in
    14  second-hand precious metals dealer and receives payment from such dealer
    15  shall be guilty of a:
    16    (a) class E felony if the payment received is less than three  hundred
    17  dollars; and
    18    (b) class D felony if the payment received is three hundred dollars or
    19  more.
    20    § 239-k. Powers of the department. The department shall promulgate any
    21  rules  and  regulations  necessary  to  implement the provisions of this
    22  article.
    23    § 2. This act shall take effect on the first of January next  succeed-
    24  ing  the date on which it shall have become a law. Effective immediately
    25  any actions necessary to implement the provisions of  this  act  on  its
    26  effective date are authorized to be completed on or before such date.
Go to top