PRINTER'S NO. 917
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
799
Session of
2015
INTRODUCED BY WARD, WHITE, COSTA, STEFANO, VULAKOVICH AND
RAFFERTY, MAY 14, 2015
REFERRED TO BANKING AND INSURANCE, MAY 14, 2015
AN ACT
Amending Title 44 (Law and Justice) of the Pennsylvania
Consolidated Statutes, providing for registration of
pawnbrokers, precious metals dealers, secondhand dealers and
scrap metal processors.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 44 of the Pennsylvania Consolidated
Statutes is amended by adding a chapter to read:
CHAPTER 91
REGISTRATION OF PAWNBROKERS, PRECIOUS METALS
DEALERS, SECONDHAND DEALERS
AND SCRAP METAL PROCESSORS
Subchapter
A. General Provisions
B. Registry
C. Licensing
SUBCHAPTER A
GENERAL PROVISIONS
Sec.
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9101. Definitions.
9102. Reporting requirements.
9103. Holding period of property.
9104. Inspection of premises and records.
9105. Notice to law enforcement of stolen goods.
9106. Prohibited actions and penalties.
9107. Local regulations.
§ 9101. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Antique dealer." A person who exclusively sells goods that
are no less than 50 years old.
"Automated kiosk." A self-serve computer system that
evaluates and buys used electronics directly from consumers for
cash or store credit.
"Exempted Internet sale." An offer for a sale of secondhand
property available on an Internet website where the item is
listed for sale that meets all of the following criteria:
(1) The item m ay be viewed by any member of the general
public at no charge.
(2) The item may be searched by any member of the
general public, at no charge, by the zip code or state in
which the secondhand property offered for sale is located.
(3) The item is assigned a unique item listing number by
the Internet website.
(4) The item is provided, in a timely manner, at no
additional charge to the secondhand dealer, to a unified,
nationally available database, which database is searchable
by item description and by seller, and may be accessed by a
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law enforcement agency with adequate security features and
privacy protections if reasonably necessary for an ongoing
investigation of a crime.
"Ferrous metals." Items that are predominantly made from
iron or steel that have no further use in their original
manufactured form but can be melted for their metal content and
utilized in the manufacture of new products.
"Final consumption." A sale to a final consumer that is not
a person who intends to resell.
"Gold." Any alloy of the element gold, of 10 karat or
greater fineness.
"Investment coins." Numismatic coins or other forms of money
and legal tender manufactured of gold, silver, platinum,
palladium or other metal and of the United States or any foreign
nation with a fair market value greater than any nominal value
of such coins. The term does not include jewelry or works of art
made of coins, nor does it include commemorative medallions.
"Investment metal bullion." Any elementary precious metal
which has been put through a process of smelting or refining,
including, but not limited to, gold, silver, platinum and
palladium, and which is in such state or condition that its
value depends upon its content and not its form. The term does
not include precious metal which has been assembled, fabricated,
manufactured or processed in one or more specific and customary
industrial, professional, aesthetic or artistic uses.
"Karat." One 1/24 part, by weight, of the alloy of the
metallic element gold.
"Licensed dealer." A pawnbroker, precious metal dealer,
scrap metal processor or secondhand dealer required to register
under this chapter.
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"Nonferrous metals." Items that are predominantly made from
metals other than iron and steel, such as copper, brass,
aluminum, bronze, lead, zinc, nickel and alloys that have no
further use in their original manufactured form, but can be
melted for their metal content and utilized in the manufacture
of new products.
"Pawnbroker." As the term is defined in section 2 of the act
of April 6, 1937 (P.L.200, No.51), known as the Pawnbrokers
License Act.
"Personal property." Items commonly targeted for theft,
including:
(1) Portable electronics, as defined by the act of July
5, 2012 (P.L.995, No.112), known as the Portable Electronics
Insurance Act.
(2) Computers, laptops, notebooks, printers, scanners,
electronic tablets and other computer-related items.
(3) Televisions and radios.
(4) Power tools and household items, including small
electronics.
(5) Sporting equipment.
(6) Hunting items, knives and decorative weapons.
(7) Firearms, as defined in 18 Pa.C.S. § 6102 (relating
to definitions), excluding firearms transferred through a
Federal firearms dealer.
(8) Pedalcycles, as defined in 75 Pa.C.S. § 102
(relating to definitions).
"Platinum." Any alloy of the element platinum, 750/1000 or
more parts per thousand, by weight, of pure platinum.
"Precious metal dealer." A person that purchases precious
metals from the general public for resale or refining or any
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individual who acts as agent for the person for such purchase,
excluding any of the following:
(1) A financial institution licensed under Federal or
State banking laws.
(2) A manufacturer of jewelry or of other items
composed, in whole or in part, of gold, silver or platinum.
(3) A purchaser of precious metals for the purchaser's
own use or ownership and not for resale or refining.
"Precious metals." Items containing or being of gold, silver
or platinum, including, but not limited to, jewelry and silver
services, investment metal bullion and investment coins, but
excluding any article containing less than 5% of gold, silver or
platinum by weight.
"Property." Previously owned, used, rented or leased
precious metals, ferrous metals, nonferrous metals and personal
property sold or received by a licensed dealer.
"Retail." The sale or purchase for final consumption.
"Scrap metal processor." An owner, operator or employee
that, from a fixed location, utilizes machinery and equipment
for processing and manufacturing ferrous or nonferrous
metallic scrap, paper scrap, plastic scrap, rubber scrap or
glass scrap into prepared grades and whose principal product is
sold as a raw material in the manufacture of new products.
"Secondhand dealer." A storefront business, including an
automated kiosk, that includes any volume of selling or
receiving previously owned, used, rented or leased property,
excluding a business that:
(1) operates as an a uction house, antique dealer or
motor vehicle dealer;
(2) sells secondhand goods by conducting a garage sale,
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yard sale, estate sale or auction;
(3) sells or receives secondhand books, magazines, post
cards or postage stamps;
(4) sells or receives used merchandise donated to
recognized nonprofit, religious or charitable organizations
or any school-sponsored association for which no compensation
is paid;
(5) sells or receives secondhand furniture;
(6) sells or receives secondhand clothing or shoes;
(7) engages in exempted Internet sales; or
( 8) is a Federal firearms licensed dealer.
"Silver." Any alloy of the element silver, 900/1000 or more
parts per thousand, by weight, of pure silver.
§ 9102. Reporting requirements.
(a) Record of transactions.--A licensed dealer shall create
a record of a property transaction by utilizing the Statewide
registry established by the Pennsylvania State Police or a
municipality in accordance with section 9121 (relating to
Statewide registry).
(b) Record information.--The record under subsection (a)
shall include, at a minimum, all of the following information:
(1) The name, age, birth date and address of the seller ,
which shall be verified by the licensed dealer by proof of
identity approved by the Pennsylvania State Police.
(2) A complete and accurate description of the property
purchased by the licensed dealer, including any serial number
or other identifying marks or symbols, the date and hour of
the transaction and the amount.
(3) Any other information required by regulations
promulgated by the Pennsylvania State Police.
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(c) Record submission.--
(1) A licensed dealer shall submit property transaction
records electronically in a manner approved by the
Pennsylvania State Police by the close of the business day
the property is purchased or acquired.
(2) A submitted property transaction record shall be
kept confidential and shall not be considered a public record
under the act of February 14, 2008 (P.L.6, No.3), known as
the Right-to-Know Law.
(d) Record inspection.--The information under subsection (b)
shall be available for inspection upon request by any law
enforcement official of the Federal Government, the Commonwealth
or any of its municipalities.
§ 9103. Holding period of property.
(a) Holding period.--Except as provided for in subsections
(b) and (c), a licensed dealer shall keep, for a period of not
less than 15 calendar days, subject to inspection by law
enforcement, property of any person before selling, shipping or
otherwise disposing of the property. Property held during the
holding period shall be held separately from goods and
merchandise for sale. Nothing in this subsection shall be
construed to prohibit a licensed dealer from securing valuable
goods, wares and merchandise in a vault, safe or safety deposit
box or other similarly secured storage area on the normal
business premises so long as the secured items are readily
available for inspection by law enforcement.
(b) Nonferrous materials.--Notwithstanding subsection (a), a
holding period may not apply for nonferrous materials that are
purchased or received by a scrap metal processor from a
commercial enterprise.
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(c) Reacquiring property.--Notwithstanding subsection (a), a
holding period may not apply if the person from which the
property was acquired or pledged desires to redeem, repurchase
or recover the property, provided that the licensed dealer can
produce the record of the original transaction with verification
that the customer is the person from whom the property was
originally acquired.
(d) Enforcement.--The following shall apply:
(1) Law enforcement may seize any alleged stolen
property for use in a criminal investigation. The release of
the property to the custody of an appropriate law enforcement
official may not constitute a waiver or release of the
licensed dealer's property rights or interest in the
property.
(2) Upon completion of the criminal proceeding, the
property may be returned to the victim of the theft unless
the court orders other disposition, including returning the
property to the licensed dealer. The court may order the
offender to pay restitution to the licensed dealer in the
amount received by the offender for the property plus
reasonable attorney fees and costs.
(e) Property identity.--A licensed dealer may not destroy,
disfigure or obliterate identification marks or cause the
identity of an article or property to otherwise be destroyed
during the holding period under subsection (a) or any subsequent
holding period under subsection (f).
(f) Additional holding period.--
(1) Law enforcement may require that the property be
held for an additional 90 days beyond the holding period
specified under subsection (a) if law enforcement knows or
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has reason to believe that the property is missing or stolen.
(2) The holding period may be extended beyond the 90-day
period under paragraph (1) by a written order issued by a
court of competent jurisdiction upon a finding of probable
cause that the property is stolen and further holding is
necessary for the purposes of trial or to safeguard the
property.
(g) Definition.--As used in this section, the term
"commercial enterprise" shall have the meaning given to it in
section 2 of the act of October 9, 2008 (P.L.1408, No.113),
known as the Scrap Material Theft Prevention Act.
§ 9104. Inspection of premises and records.
(a) Maintaining information.--A licensed dealer shall
maintain a record of all of the information required by this
chapter and a photocopy of personal identification approved by
the Pennsylvania State Police for a period of not less than two
years from the date the transaction was recorded.
(b) Inspection.--The information required to be maintained
under this chapter shall, during regular business hours, be
subject to inspection by any law enforcement official of the
Federal Government, the Commonwealth or any of its
municipalities. The inspection shall consist of an examination
on the premises of the inventory and required records to
determine whether or not the information and inventory are being
maintained on the premises as required by this chapter.
§ 9105. Notice to law enforcement of stolen goods.
A licensed dealer may seize property offered to a person for
sale or as a pledge or pawn that the person has reason to
believe has been stolen. The person shall immediately notify the
law enforcement agency with jurisdiction over the premises where
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the sale or offer or pledge took place or where the property is
currently located. Any person acting in compliance with this
section shall be immune from civil or criminal penalties if the
person acts in good faith.
§ 9106. Prohibited actions and penalties.
(a) Unlicensed dealers.--The purchase of property by an
unlicensed dealer shall constitute a violation of this chapter,
and the unlicensed dealer shall be guilty of a misdemeanor of
the third degree.
(b) Licensed dealers.--A licensed dealer that violates any
provisions of this chapter commits a misdemeanor of the third
degree.
(c) Revocation of license and ineligibility.--The following
apply:
(1) A person convicted of any of the following offenses
may not be eligible to receive or hold a license to engage in
the practice of a licensed dealer under this chapter:
(i) 18 Pa.C.S. § 3502 (relating to burglary).
(ii) 18 Pa.C.S. § 3701 (relating to robbery).
(iii) 18 Pa.C.S. Ch. 39 (relating to theft and
related offenses).
(iv) 18 Pa.C.S. Ch. 41 (relating to forgery and
fraudulent practices).
(2) In addition to the penalties set forth in
subsections (a) and (b) and paragraph (1), a person that
violates any provisions of this chapter shall, upon
conviction, be subject to license revocation and may not be
eligible to apply for a license to engage in the practice of
a licensed dealer under this chapter.
§ 9107. Local regulations.
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Nothing in this chapter shall preclude a municipality from
enacting more restrictive ordinances, codes or regulations than
the provisions of this chapter. The ordinances, codes or
regulations may not be in lieu of the provisions set forth in
this chapter.
SUBCHAPTER B
REGISTRY
Sec.
9121. Statewide registry.
§ 9121. Statewide registry.
(a) Establishment.--The Pennsylvania State Police shall
establish a Statewide registry of licensed dealers in order to
carry out the provisions of this chapter. The Pennsylvania State
Police may contract with an entity that has experience in the
development and maintenance of Statewide registries. The
registry shall maintain a complete and systematic index of all
records required under this chapter, including all records of
property transactions. The registry shall:
(1) be composed of an electronic database and digitized
records;
(2) allow licensed dealers to enter records of property
transactions;
(3) allow law enforcement agencies to enter records of
property reported stolen or missing and search property
transactions; and
(4) be able to communicate with a current or successor
database maintained by the United States Department of
Justice.
(b) Other registries.--A municipality that has developed a
registry to record property transactions within its jurisdiction
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shall, at a minimum, meet the standards of the Pennsylvania
State Police and shall be capable of uploading its transaction
records and other information with the Statewide registry
established under subsection (a).
SUBCHAPTER C
LICENSING
Sec.
9131. License required.
9132. License to engage in the business of a licensed dealer.
9133. License fees.
9134. List of licensed dealers.
§ 9131. License required.
A person may not engage in the business of a licensed dealer
without being licensed and duly qualified as provided under this
chapter.
§ 9132. License to engage in the business of a licensed dealer.
(a) Issuance.--Pursuant to the process established by the
Pennsylvania State Police by regulation, the sheriff of each
county shall annually issue licenses to engage in the business
of a licensed dealer.
(b) Licenses.--A license issued under subsection (a) shall
designate each address within the county where the person
engages in the business of a licensed dealer. A person may not
engage in the business of a licensed dealer in a location not
designated on the license.
(c) Application form.--An application to become a licensed
dealer shall include the results of a criminal history record
information check obtained from the Pennsylvania State Police.
The Pennsylvania State Police shall promulgate regulations
pertaining to the application form to become a licensed dealer.
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(d) Suspension or revocation.--The Pennsylvania State Police
or sheriff of the county where the license was issued may
suspend or revoke a license for a violation of this chapter.
(e) P ublic record.--A license issued under subsection (a)
shall be a public record available to the general public for
inspection.
§ 9133. License fees.
A person shall pay a $50 fee plus an administrative fee that
shall be set by regulations promulgated by the Pennsylvania
State Police to apply to become a licensed dealer. The license
fee shall be paid into the treasury of the county where the
license is issued for use by the county. The administrative fee
shall be paid to the Pennsylvania State Police to fund the
establishment and maintenance of the Statewide registry required
under section 9121 (relating to Statewide registry).
§ 9134. List of licensed dealers.
The Pennsylvania State Police shall maintain a list of
licensed dealers in this Commonwealth, including their addresses
and contact information. The list shall be a public record
available to the general public for inspection.
Section 2. The following acts or parts of acts are repealed
insofar as they are inconsistent with this act:
(1) Sections 2, 3, 4 and 10 of the act of February 24,
1984 (P.L.92, No.17), known as the Precious Metal Sale
Regulation Law.
(2) All other acts or parts of acts are repealed insofar
as they are inconsistent with this act.
Section 3. This act shall take effect July 1, 2015.
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