1Amending Title 44 (Law and Justice) of the Pennsylvania
2Consolidated Statutes, providing for registration of
3pawnbrokers, precious metals dealers, secondhand dealers and
4scrap metal processors; and making inconsistent repeals.

5The General Assembly of the Commonwealth of Pennsylvania
6hereby enacts as follows:

7Section 1. Title 44 of the Pennsylvania Consolidated
8Statutes is amended by adding a chapter to read:

9CHAPTER 91

10REGISTRATION OF PAWNBROKERS, PRECIOUS METALS

11DEALERS, SECONDHAND DEALERS

12AND SCRAP METAL PROCESSORS

13Subchapter

14A. General Provisions

15B. Registry

16C. Licensing

17SUBCHAPTER A

18GENERAL PROVISIONS

19Sec.

19101. Definitions.

29102 Reporting requirements.

39103. Holding period of property.

49104. Inspection of premises and records.

59105. Notice to law enforcement of stolen goods.

69106. Prohibited actions and penalties.

79107. Local regulations.

8§ 9101. Definitions.

9The following words and phrases when used in this chapter
10shall have the meanings given to them in this section unless the
11context clearly indicates otherwise:

12"Antique dealer." A person who sells exclusively goods that
13are no less than 50 years old.

14"Automated kiosk." A self-serve computer system that
15evaluates and buys used electronics directly from consumers for
16cash or store credit.

17"Exempted Internet sale." An offer for a sale of secondhand
18property available on an Internet website where the item is
19listed for sale that meets all of the following criteria:

20(1) The item may be viewed by any member of the general 
21public at no charge.

22(2) The item may be searched by any member of the
23general public, at no charge, by the zip code or state in
24which the secondhand property offered for sale is located.

25(3) The item is assigned a unique item listing number by
26the Internet website.

27(4) The item is provided, in a timely manner, at no 
28additional charge to the secondhand dealer, to a unified, 
29nationally available database, which database that is 
30searchable by item description and by seller, and may be
 

1accessed by a law enforcement agency with adequate security 
2features and privacy protections if reasonably necessary for 
3an ongoing investigation of a crime.

4"Ferrous metals."  Items that are predominantly made from
5iron or steel that have no further use in their original
6manufactured form but can be melted for their metal content and
7utilized in the manufacture of new products.

8"Final consumption." A sale to a final consumer that is not
9a person who intends to resell.

10"Gold." Any alloy of the element gold, ten karat or of
11greater fineness.

12"Investment coins." Numismatic coins or other forms of money
13and legal tender manufactured of gold, silver, platinum,
14palladium or other metal and of the United States or any foreign
15nation with a fair market value greater than any nominal value
16of such coins. The term does not include jewelry or works of art
17made of coins, nor does it include commemorative medallions.

18"Investment metal bullion." Any elementary precious metal
19which has been put through a process of smelting or refining,
20including, but not limited to, gold, silver, platinum and
21palladium, and which is in such state or condition that its
22value depends upon its content and not its form. The term does
23not include precious metal which has been assembled, fabricated,
24manufactured or processed in one or more specific and customary
25industrial, professional, aesthetic or artistic uses.

26"Karat." One 1/24 part, by weight, of the alloy of the
27metallic element gold.

28"Licensed dealer." A pawnbroker, precious metal dealer,
29scrap metal processor or secondhand dealer required to register
30under this chapter.

1"Nonferrous metals."  Items that are predominantly made from
2metals other than iron and steel, such as copper, brass,
3aluminum, bronze, lead, zinc, nickel and alloys that have no
4further use in their original manufactured form, but can be
5melted for their metal content and utilized in the manufacture
6of new products.

7"Pawnbroker." As the term is defined in section 2 of the act
8of April 6, 1937 (P.L.200, No.51), known as the "Pawnbrokers
9License Act."

10"Personal property." Items commonly targeted for theft,
11including:

12(1) Portable electronics, as defined by the act of July
135, 2012 (P.L.995, No.112), known as the Portable Electronics
14Insurance Act.

15(2) Computers, laptops, notebooks, printers, scanners,
16electronic tablets and other computer-related items.

17(3) Televisions and radios.

18(4) Power tools and household items, including small
19electronics.

20(5) Sporting equipment.

21(6) Hunting items, knives and decorative weapons.

22(7) Firearms, as defined in 18 Pa.C.S. § 6102 (relating
23to definitions), excluding firearms transferred through a
24Federal firearms dealer.

25(8) Pedalcycles, as defined in 75 Pa.C.S. § 102
26(relating to definitions).

27"Platinum." Any alloy of the element platinum, 750/1000 or
28more parts per thousand, by weight, of pure platinum.

29"Precious metal dealer." A person that purchases precious
30metals from the general public for resale or refining or any

1individual who acts as agent for the person for such purchase,
2excluding any of the following:

3(1) A financial institution licensed under Federal or
4State banking laws.

5(2) A manufacturer of jewelry or of other items
6composed, in whole or in part, of gold, silver or platinum.

7(3) A purchaser of precious metals for the purchaser's
8own use or ownership and not for resale or refining.

9"Precious metals." Items containing or being of gold, silver
10or platinum, including, but not limited to, jewelry and silver
11services, investment metal bullion and investment coins, but
12excluding any article containing less than 5% of gold, silver or
13platinum by weight.

14"Property." Previously owned, used, rented or leased
15precious metals, ferrous metals, nonferrous metals and personal
16property sold or received by a licensed dealer.

17"Retail." The sale or purchase for final consumption.

18"Scrap metal processor." An owner, operator or employee
19that, from a fixed location, utilizes machinery and equipment
20for processing and manufacturing ferrous or nonferrous
21metallic scrap, paper scrap, plastic scrap, rubber scrap or
22glass scrap into prepared grades and whose principal product is
23sold as a raw material in the manufacture of new products.

24"Secondhand dealer."  A storefront business, including an
25automated kiosk, that includes any volume of selling or
26receiving previously owned, used, rented or leased property,
27excluding a business that:

28(1) operates as an auction house, antique dealer or 
29motor vehicle dealer;

30(2) sells secondhand goods by conducting a garage sale,

1yard sale, estate sale or auction;

2(3) sells or receives secondhand books, magazines, post
3cards or postage stamps;

4(4) sells or receives used merchandise donated to
5recognized nonprofit, religious or charitable organizations
6or any school-sponsored association for which no compensation
7is paid;

8(5) sells or receives secondhand furniture;

9(6) sells or receives secondhand clothing or shoes;

10(7) engages in exempted Internet sales; or

11(8) is a Federal firearms licensed dealer.

12"Silver." Any alloy of the element silver, 900/1000 or more
13parts per thousand, by weight, of pure silver.

14§ 9102. Reporting requirements.

15(a) Record of transactions.--A licensed dealer shall create
16a record of a property transaction by utilizing the Statewide
17registry established by the Pennsylvania State Police or a
18municipality in accordance with section 9121 (relating to
19Statewide registry).

20(b) Record information.--The record under subsection (a)
21shall include, at a minimum, all of the following information:

22(1) The name, age, birth date and address of the seller, 
23which shall be verified by the licensed dealer by proof of 
24identity approved by the Pennsylvania State Police.

25(2) A complete and accurate description of the property 
26purchased by the licensed dealer, including any serial number 
27or other identifying marks or symbols, the date and hour of 
28the transaction and the amount.

29(3) Any other information required by regulations
30promulgated by the Pennsylvania State Police.

1(c) Record submission.--

2(1) A licensed dealer shall submit property transaction
3records electronically in a manner approved by the
4Pennsylvania State Police by the close of the business day
5the property is purchased or acquired.

6(2) A submitted property transaction record shall be 
7kept confidential and shall not be considered a public record 
8under the act of February 14, 2008 (P.L.6, No.3), known as 
9the Right-to-Know Law.

10(d) Record inspection.--The information under subsection (b)
11shall be available for inspection upon request by any law
12enforcement official of the Federal Government, the Commonwealth
13or any of its municipalities.

14§ 9103. Holding period of property.

15(a) Holding period.--Except as provided for in subsections
16(b) and (c), a licensed dealer shall keep, for a period of not
17less than 15 calendar days, subject to inspection by law
18enforcement, property of any person before selling, shipping or
19otherwise disposing of the property. Property held during the
20holding period shall be held separately from goods and
21merchandise for sale. Nothing in this subsection shall be
22construed to prohibit a licensed dealer from securing valuable
23goods, wares and merchandise in a vault, safe or safety deposit
24box or other similarly secured storage area on the normal
25business premises so long as the secured items are readily
26available for inspection by law enforcement.

27(b) Nonferrous materials.--Notwithstanding subsection (a), a
28holding period may not apply for nonferrous materials that are
29purchased or received by a scrap metal processor from a
30commercial enterprise.

1(c) Reacquiring property.--Notwithstanding subsection (a), a 
2holding period may not apply if the person from which the 
3property was acquired or pledged desires to redeem, repurchase 
4or recover the property, provided that the licensed dealer can 
5produce the record of the original transaction with verification 
6that the customer is the person from whom the property was 
7originally acquired.

8(d) Enforcement.--The following shall apply:

9(1) Law enforcement may seize any alleged stolen
10property for use in a criminal investigation. The release of
11the property to the custody of an appropriate law enforcement
12official may not constitute a waiver or release of the
13licensed dealer's property rights or interest in the
14property.

15(2) Upon completion of the criminal proceeding, the
16property may be returned to the victim of the theft unless
17the court orders other disposition, including returning the
18property to the licensed dealer. The court may order the
19offender to pay restitution to the licensed dealer in the
20amount received by the offender for the property plus
21reasonable attorney fees and costs.

22(e) Property identity.--A licensed dealer may not destroy,
23disfigure or obliterate identification marks or cause the
24identity of an article or property to otherwise be destroyed
25during the holding period under section (a) or any subsequent
26holding period under subsection (f).

27(f) Additional holding period.--

28(1) Law enforcement may require that the property be
29held for an additional 90 days beyond the holding period
30specified under subsection (a) if law enforcement knows or

1has reason to believe that the property is missing or stolen.

2(2) The holding period may be extended beyond the 90-day
3period under paragraph (1) by a written order issued by a
4court of competent jurisdiction upon a finding of probable
5cause that the property is stolen and further holding is
6necessary for the purposes of trial or to safeguard the
7property.

8(g) Definitions.--As used in this section, the term
9"commercial enterprise" shall have the meaning given to it in
10section 2 of the act of October 9, 2008 (P.L.1408, No.113),
11known as the Scrap Material Theft Prevention Act.

12§ 9104. Inspection of premises and records.

13(a) Maintaining information.--A licensed dealer shall
14maintain a record of all of the information required by this
15chapter and a photocopy of personal identification approved by 
16the Pennsylvania State Police for a period of not less than two
17years from the date the transaction was recorded.

18(b) Inspection.--The information required to be maintained
19under this chapter shall, during regular business hours, be
20subject to inspection by any law enforcement official of the
21Federal Government, the Commonwealth or any of its
22municipalities. The inspection shall consist of an examination
23on the premises of the inventory and required records to
24determine whether or not the information and inventory are being
25maintained on the premises as required by this chapter.

26§ 9105. Notice to law enforcement of stolen goods.

27A licensed dealer may seize property offered to a person for
28sale or as a pledge or pawn that the person has reason to
29believe has been stolen. The person shall immediately notify the
30law enforcement agency with jurisdiction over the premises where

1the sale or offer or pledge took place or where the property is
2currently located. Any person acting in compliance with this
3section shall be immune from civil or criminal penalties if the
4person acts in good faith.

5§ 9106. Prohibited actions and penalties.

6(a) Unlicensed dealers.--The purchase of property by an
7unlicensed dealer shall constitute a violation of this chapter,
8and the unlicensed dealer shall be guilty of a misdemeanor of
9the third degree.

10(b) Licensed dealers.--A licensed dealer that violates any
11provisions of this chapter commits a misdemeanor of the third
12degree.

13(c) Revocation of license and ineligibility.--The following
14apply:

15(1) A person convicted of any of the following offenses
16may not be eligible to receive or hold a license to engage in
17the practice of a licensed dealer under this chapter:

18(i) 18 Pa.C.S. § 3502 (relating to burglary).

19(ii) 18 Pa.C.S. § 3701 (relating to robbery).

20(iii) 18 Pa.C.S. Ch. 39 (relating to theft and
21related offenses).

22(iv) 18 Pa.C.S. Ch. 41 (relating to forgery and
23fraudulent practices).

24(2) In addition to the penalties set forth in
25subsections (a) and (b) and paragraph (1), a person that
26violates any provisions of this chapter shall, upon
27conviction, be subject to license revocation and may not be
28eligible to apply for a license to engage in the practice of
29a licensed dealer under this chapter.

30§ 9107. Local regulations.

1Nothing in this chapter shall preclude a municipality from
2enacting more restrictive ordinances, codes or regulations than
3the provisions of this chapter. The ordinances, codes or
4regulations may not be in lieu of the provisions set forth in
5this chapter.

6SUBCHAPTER B

7REGISTRY

8Sec.

99121. Statewide registry.

10§ 9121. Statewide registry.

11(a) Establishment.--The Pennsylvania State Police shall
12establish a Statewide registry of licensed dealers in order to
13carry out the provisions of this chapter. The Pennsylvania State
14Police may contract with an entity that has experience in the
15development and maintenance of Statewide registries. The
16registry shall maintain a complete and systematic index of all
17records required under this chapter, including all records of
18property transactions. The registry shall:

19(1) be composed of an electronic database and digitized
20records;

21(2) allow licensed dealers to enter records of property
22transactions;

23(3) allow law enforcement agencies to enter records of
24property reported stolen or missing and search property
25transactions; and

26(4) be able to communicate with a current or successor
27database maintained by the United States Department of 
28Justice.

29(b) Other registries.--A municipality that has developed a
30registry to record property transactions within its jurisdiction

1shall, at a minimum, meet the standards of the Pennsylvania
2State Police and shall be capable of uploading its transaction
3records and other information with the Statewide registry
4established under subsection (a).

5SUBCHAPTER C

6LICENSING

7Sec.

89131. License required.

99132. License to engage in the business of a licensed dealer.

109133. License fees.

119134. List of licensed dealers.

12§ 9131. License required.

13A person may not engage in the business of a licensed dealer
14without being licensed and duly qualified as provided under this
15chapter.

16§ 9132. License to engage in the business of a licensed dealer.

17(a) Issuance.--Pursuant to the process established by the
18Pennsylvania State Police by regulation, the sheriff of each
19county shall annually issue licenses to engage in the business
20of a licensed dealer.

21(b)  Licenses.--A license issued under subsection (a) shall
22designate each address within the county where the person
23engages in the business of a licensed dealer. A person may not
24engage in the business of a licensed dealer in a location not
25designated on the license.

26(c) Application form.--An application to become a licensed 
27dealer shall include the results of a criminal history record 
28information check obtained from the Pennsylvania State Police. 
29The Pennsylvania State Police shall promulgate regulations 
30pertaining to the application form to become a licensed dealer.

1(d) Suspension or revocation.--The Pennsylvania State Police
2or sheriff of the county where the license was issued may
3suspend or revoke a license for a violation of this chapter.

4(e)  Public record.--A license issued under subsection (a)
5shall be a public record available to the general public for
6inspection.

7§ 9133. License fees.

8A person shall pay a $50 fee plus an administrative fee that
9shall be set by regulations promulgated by the Pennsylvania
10State Police to apply to become a licensed dealer. The license
11fee shall be paid into the treasury of the county where the
12license is issued for use by the county. The administrative fee
13shall be paid to the Pennsylvania State Police to fund the
14establishment and maintenance of the Statewide registry required
15under section 9121 (relating to Statewide registry).

16§ 9134. List of licensed dealers.

17The Pennsylvania State Police shall maintain a list of
18licensed dealers in this Commonwealth, including their addresses
19and contact information. The list shall be a public record
20available to the general public for inspection.

21Section 2. The following acts or parts of acts are repealed
22insofar as they are inconsistent with this act:

23(1) Sections 2, 3, 4 and 10 of the act of February 24,
241984 (P.L.92, No.17), known as the Precious Metal Sale
25Regulation Law.

26(2) All other acts or parts of acts are repealed insofar
27as they are inconsistent with this act.

28Section 3. This act shall take effect July 1, 2014.