PRINTER'S NO. 287
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
293
Session of
2017
INTRODUCED BY D. COSTA, SCHLOSSBERG, V. BROWN, TAYLOR, THOMAS,
McNEILL, FREEMAN AND DEASY, FEBRUARY 2, 2017
REFERRED TO COMMITTEE ON CONSUMER AFFAIRS, FEBRUARY 2, 2017
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,"
further providing for definitions, for license required, for
records of transactions, for dealer's retention of precious
metal and availability for inspection, for purchases from
minors and for penalties.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definition of "dealer in precious metals" in
section 1 of the act of February 24, 1984 (P.L.92, No.17),
referred to as the Precious Metal Sale Regulation Law, is
amended and the section is amended by adding a definition to
read:
Section 1. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Dealer in precious metals." As follows:
(1) An individual, partnership, association, corporation
or business entity, who or which purchases precious metals
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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.
(2) An individual, partnership, association, corporation
or business entity, who or which advertises the buying or
selling of any precious metals by such individual,
partnership, association, corporation or business entity.
(3) 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.
* * *
"Proof of identity." A document that:
(1) shows the name of the seller;
(2) shows a photograph of the seller;
(3) shows the address of the seller;
(4) includes an expiration date and is not expired; and
(5) was issued by the United States Government, any
state of the United States, the District of Columbia, the
Commonwealth of Puerto Rico or any territory of the United
States.
* * *
Section 2. Section 2(a) and (c) of the act are amended and
the section is amended by adding a subsection to read:
Section 2. License required.
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(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. The license shall be displayed
in the area of the business where precious metal transactions
transpire.
* * *
(c) License fee.--The license fee shall not exceed [$50]
$125 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, with not less than 50% of the fee
allocated to the county sheriff's office.
* * *
(f) Dealer compliance fee.--A local compliance fee, not to
exceed $250 annually, shall be determined by each county and
paid by a dealer in precious metals as a condition of licensure.
The compliance fee shall be used to pay costs associated with
the management and maintenance of computer software used to
monitor the input and recording of precious metal transactions.
In addition, the fees shall be used to provide related support
for transactions between dealers in precious metals and their
customers.
Section 3. Sections 3(a), 4(a), (b) and (c), 5 and 10 of the
act are amended to read:
Section 3. 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, to
include first, middle and last name, address of residence,
date of birth, sex, hair color, eye color, height and weight,
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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] A complete and accurate description of the
property purchased, including any serial number or other
identifying marks or symbols, metallic composition of the
object, alterations made to the object, weight of the object,
the price paid by the dealer for the object and the date and
hour of the transaction. Separate entries shall be made for
each item acquired.
(3) A photograph of the property purchased.
(4) A photocopy of the seller's proof of identity.
(5) The seller's and dealer's signature for each
transaction.
(6) Written authority and proof of identity of the
seller's parent, guardian or person in loco parentis, if the
seller is under 18 years of age.
* * *
Section 4. 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] 10
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] 10 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
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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
precious metals shall retain the item in unaltered condition for
an additional seven days, unless the law enforcement officer in
writing recalls such notice.] the law enforcement officer may
seize and retain the item in unaltered condition for a period of
no more than 30 days to determine whether or not the item was
stolen. The law enforcement officer shall provide notice to the
dealer upon seizing the item.
* * *
Section 5. Purchases from minors.
The dealer in precious metals shall require any minor seeking
to sell precious metals to produce written authority and proof
of identity 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 10. 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] first degree.
(b) Licensed dealers.--Any licensed dealer in precious
metals who violates any provisions of this act shall be guilty
of a misdemeanor of the [third] first degree.
(b.1) Allocation of portion of fines collected.--
Notwithstanding the provisions of 42 Pa.C.S. ยงยง 3571 (relating
to Commonwealth portion of fines, etc.) and 3573 (relating to
municipal corporation portion of fines, etc.), 10% of the fines
collected under subsections (a) and (b) for a violation of this
act shall be allocated to pay the costs of the county computer
software under section 2(f).
(c) Revocation of license and ineligibility.--Any
individual, partnership, association, corporation or business
entity violating any provisions of this act 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 for a period of [five] 10 years thereafter.
Section 4. This act shall take effect in one year.
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