GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2009
H 1
HOUSE BILL 1637
|
Short Title: Modernize Precious Metal Business Permitting. |
(Public) |
|
|
Sponsors: |
Representatives Samuelson and Dickson (Primary Sponsors). |
|
|
Referred to: |
Judiciary III, if favorable, Finance. |
|
May 7, 2009
A BILL TO BE ENTITLED
AN ACT to modernize the record keeping of precious metals purchases by dealers, to subject all dealers in precious metals to the same licensing and record‑keeping requirements by repealing the "ten percent or less of purchases" exemption from dealer permitting and regulation, to increase precious metal permitting fees, to require that a criminal record check be conducted on employees of precious metals dealers, and to make various other changes to the precious metals permitting statutes.
The General Assembly of North Carolina enacts:
SECTION 1. G.S. 66‑164 reads as rewritten:
Unless the context clearly indicates otherwise, the
following words and phrases shall have the following meanings: The
following definitions apply in this Article:
(1) 'Dealer' means a Dealer. – A person
who engages in the business of purchasing purchases precious
metals from the public public, other than by an exempted transaction,
in the form of jewelry, flatware, silver services services, or
other forms and holds himself or herself out to the public by signs, advertising
advertising, or other methods as engaging in such purchases purchases,
including any independent contractor purchasing precious metals under any
arrangement in any department store; store. provided, however,
that permanently located retail merchants shall be exempted insofar as they make
Exempted transactions include (i) purchases directly from manufacturers
or wholesalers of precious metals by permanently located retail merchants
for their inventories. inventories Provided further, a
permanently located retail merchant who is primarily engaged in the business of
purchasing or acquiring jewelry, secondhand furniture, antique furniture,
objects of art, artifacts, nonprecious metal collector items, antiquities and
other used household furnishings or fixtures for resale to the public, and who
purchases precious metals, articles or items from the public only incidentally
to his main business, may be exempted as provided in G.S. 66‑166 if
his total purchases or acquisitions of precious metals from the public
constituted ten percent (10%) or less in dollar volume of the total purchases
or acquisitions in dollar volume made by such merchant for all such secondhand
items or articles in the 12‑month period next preceding the date of
application for an exemption under G.S. 66‑166. Provided further
that pawnbrokers as defined in G.S. 91A‑3 shall be exempted insofar
as they accept and (ii) pawns or pledges of items made of precious
metals under the provisions of Chapter 91A of the General Statutes and made
to pawnbrokers as defined in G.S. 91A‑3.
(2) 'Local law enforcement agency' means: Local
law enforcement agency. – The term means the following, as applicable:
a. The county police force; or force, if the
dealer's business is located within a county with a police force and outside
the corporate limits of a municipality.
b. The county sheriff's office in a county with no
county police force for any business located outside the corporate limits of a
municipality or inside the corporate limits of a municipality having no
municipal police force. "Local law enforcement agency" means the
municipal police for any business located within the corporate limits of a
municipality having a police force. The municipal police force, if the
dealer's business is located within the corporate limits of a municipality
having a police force.
c. The county sheriff's office of the county in which the dealer's business is located, if neither sub‑subdivision a. nor b. of this subdivision applies.
(3) 'Precious metal' means gold, Precious
metal. – Gold, silver, or platinum platinum, as defined below,
but excluding coins, medals, medallions, tokens, numismatic items, art ingots,
or art bars.
a. 'Gold' is defined as any Gold. – Any
item or article containing ten (10) karat karats of gold or more
which may be in combination or alloy with any other metal.
b. 'Silver' is defined as any Silver. – Any
item or article containing 925 parts per thousand of silver which may be in
combination or alloy with any nonprecious metal or which is marked 'sterling'.
c. 'Platinum' is defined as any Platinum. – Any
item or article containing 900 parts per thousand or more of platinum which may
be in combination or alloy with any other metal.
For purposes of this Article, 'precious metal' does not
include coins, medals, medallions, tokens, numismatic items, art ingots, or art
bars."
SECTION 2. G.S. 66‑165 reads as rewritten:
"§ 66‑165. Permits required.
(a) Except as provided in subsection (c), it shall be
unlawful for any person to engage as a dealer in the business of purchasing
precious metals either as a separate business or in connection with other
business operations without first obtaining a permit for the business from the
local law‑enforcement law enforcement agency. The form of
the permit and application therefor shall be as approved by the Department of
Crime Control and Public Safety. The application shall be given under oath and
shall be notarized. A 30‑day waiting period from the date of filing of
the application is required prior to initial issuance of a permit. A separate
permit shall be issued for each location, place, or premises within the
jurisdiction of the local law‑enforcement law enforcement agency
which is used for the conduction of a precious metals business, and each permit
shall designate the location, place or premises to which it applies. Such
business shall not be conducted in any other place than that designated in the
permit, and no business shall be conducted in a mobile home, trailer, camper,
or other vehicle, or structure not permanently affixed to the ground or in any
room customarily used for lodging in any hotel, motel, tourist court, or
tourist home as defined in G.S. 105‑61. The permit shall be posted in
a prominent place on the designated premises. Permits shall be valid for a
period of 12 months from the date issued and may be renewed without a waiting
period upon filing of an application and payment of the annual fee. The annual
fee for each dealer's permits within each jurisdiction shall be ten dollars
($10.00)two hundred fifty dollars ($250.00) to provide for the
administrative costs of the local law‑enforcement law
enforcement agency, including purchase of required forms. The fee shall not
be refundable even if the permits are denied or later suspended or revoked.
Such permits shall be in addition to and not in lieu of other business licenses
and are not transferable.
Any dealer applying to the local law‑enforcement law
enforcement agency for a permit shall furnish the local law‑enforcement
law enforcement agency with the following information:
(1) His full name, and any other names used by the applicant during the preceding five years. In the case of a partnership, association, or corporation, the applicant shall list any partnership, association, or corporate names used during the preceding five years;
(2) Current address, and all addresses used by the applicant during the preceding five years;
(3) Physical description;
(4) Age;
(5) Driver's license number, if any, and state of issuance;
(6) Recent photograph;
(7) Record of felony convictions;
(8) Record of other convictions during the preceding five years; and
(9) A full set of fingerprints of the applicant.
If the applicant for a dealer's permit is a partnership or association, all persons owning a ten percent (10%) or more interest in the partnership or association shall comply with the provisions of this subsection. Any such permits shall be issued in the name of the partnership or association.
If the applicant for a dealer's permit is a corporation, each officer, director and stockholder owning ten percent (10%) or more of the corporation's stock, of any class, shall comply with the provisions of this subsection. Any such permits shall be issued in the name of the corporation.
No permit shall be issued to an applicant who, within five years prior to the date of application, has been convicted of a felony involving a crime of moral turpitude, or larceny, or receiving stolen goods or of similar charges in any federal court or a court of this or any other state. In the case of a partnership, association, or corporation, no permit shall be issued to any applicant with an officer, partner, or director who has, within five years prior to the date of application, been convicted of a felony involving a crime of moral turpitude, or larceny, or receiving stolen goods or of similar charges in any federal court or a court of this or any other state.
The Department of Justice may provide a criminal record check
to the local law‑enforcement law enforcement agency for a
person who has applied for a permit through the agency. The agency shall
provide to the Department of Justice, along with the request, the fingerprints
of the applicant, any additional information required by the Department of
Justice, and a form signed by the applicant consenting to the check of the
criminal record and to the use of the fingerprints and other identifying
information required by the State or national repositories. The applicant's
fingerprints shall be forwarded to the State Bureau of Investigation for a
search of the State's criminal history record file, and the State Bureau of
Investigation shall forward a set of the fingerprints to the Federal Bureau of
Investigation for a national criminal history check. The agency shall keep all
information pursuant to this subsection privileged, in accordance with
applicable State law and federal guidelines, and the information shall be
confidential and shall not be a public record under Chapter 132 of the General
Statutes.
The Department of Justice may charge each applicant a fee for conducting the checks of criminal history records authorized by this subsection.
(b) Every employee engaged in the precious metal
business shall, within two days of being so engaged, register his name and
address with the local law‑enforcement law enforcement agency
and have his photograph taken by the agency. The employee shall also consent
to a criminal history check, which shall be performed by the local law enforcement
agency. A person who refuses to consent to a criminal history check shall not
be employed by a dealer required to be licensed under this section. A person
who, within five years prior to the date of application, has been convicted of
a felony involving a crime of moral turpitude, larceny, receiving stolen goods,
or of similar charges shall not be employed by a dealer required to be licensed
under this section. The agency shall issue to him a certificate of
compliance with this section upon the applicant's payment of the sum of three
dollars ($3.00)ten dollars ($10.00) to the agency. The permit shall
be renewable annually for a three dollar ($3.00) fee and shall be posted
in the work area of the permit holder.
(c) A special occasion permit authorizes the permittee
to purchase precious metals as a dealer participating in any trade shows,
antique shows, and crafts shows conducted within the State. A special occasion
permit shall be issued by any local law‑enforcement law
enforcement agency; provided, however, that a permittee under subsection
(a) shall apply for a special occasion permit with the local law‑enforcement
law enforcement agency which issued such dealer's permit. An
application for a permit shall be on a form as approved by the Department of
Crime Control and Public Safety and shall be given under oath and notarized. A
30‑day waiting period from the date of filing of the application is
required prior to initial issuance of a permit.
Any dealer applying to a local law‑enforcement law
enforcement agency for a special occasion permit shall furnish the local law‑enforcement
law enforcement agency with the information required in an
application for a dealer's permit as set forth in (a).
If the applicant for a special occasion permit is a partnership or association, all persons owning a ten percent (10%) or more interest in the partnership or association shall comply with the provisions of this subsection. Any such permits shall be issued in the name of the partnership or association.
If the applicant for a special occasion permit is a corporation, each officer, director and stockholder owning ten percent (10%) or more of the corporation's stock, of any class, shall comply with the provisions of this subsection. Any such permits shall be issued in the name of the corporation.
No permit shall be issued to an applicant who, within five years prior to the date of application, has been convicted of a felony involving a crime of moral turpitude, or larceny, or receiving stolen goods or of similar charges in any federal court or a court of this or any other state. In the case of a partnership, association, or corporation, no permit shall be issued to any applicant with an officer, partner, or director who has, within five years prior to the date of application, been convicted of a felony involving a crime of moral turpitude, or larceny, or receiving stolen goods or of similar charges in any federal court or a court of this or any other state.
The Department of Justice may provide a criminal record check
to the local law‑enforcement law enforcement agency for a
person who has applied for a permit through the agency. The agency shall
provide to the Department of Justice, along with the request, the fingerprints
of the applicant, any additional information required by the Department of
Justice, and a form signed by the applicant consenting to the check of the
criminal record and to the use of the fingerprints and other identifying
information required by the State or national repositories. The applicant's
fingerprints shall be forwarded to the State Bureau of Investigation for a
search of the State's criminal history record file, and the State Bureau of
Investigation shall forward a set of the fingerprints to the Federal Bureau of
Investigation for a national criminal history check. The agency shall keep all
information pursuant to this subsection privileged, in accordance with
applicable State law and federal guidelines, and the information shall be
confidential and shall not be a public record under Chapter 132 of the General
Statutes.
The Department of Justice may charge each applicant a fee for conducting the checks of criminal history records authorized by this subsection.
The fee for an application for a special occasion permit
shall be ten dollars ($10.00) two hundred fifty dollars ($250.00) to
provide for the administrative cost of the local law‑enforcement law
enforcement agency including purchase of required forms. The fee shall not
be refundable even if the permit is denied or is later suspended or revoked.
Such permits shall be in addition to and not in lieu of other business licenses
and are not transferable.
A special occasion permit shall be valid for 12 months from the date issued, unless earlier surrendered, suspended, or revoked. Application for renewal of a permit for an additional 12 months shall be on a form as approved by the Department of Crime Control and Public Safety and shall be accompanied by an application fee of ten dollars ($10.00). A renewal fee shall not be refundable.
Each special occasion permit shall be posted in a prominent place on the premises of any show at which the permittee purchases precious metals."
SECTION 3. G.S. 66‑166 reads as rewritten:
"§ 66‑166.
Exemption from permits. permits; record keeping under an exemption.
(a) Any merchant claiming an exemption from the
requirements of G.S. 66‑165, 66‑168, and 66‑170 due to
the percentage of his total business which constitutes precious metals
purchases shall file an application therefor with the local law‑enforcement
law enforcement agency at the same time as applications for dealers'
permits are required to be filed under the provisions of this Article. The
application shall be upon a form approved by the Department of Crime Control
and Public Safety and shall contain as a minimum the following information: the
name, home address and business address of the applicant; the name and location
of the business at its permanent address; the primary nature of the business
both as to purchases and sales; the total dollar volume of purchases of precious
metals during the 12‑month period next preceding the date of application;
the total dollar volume of all secondhand goods purchased during the same
period by the business; the percentage of precious metals purchases or
acquisitions to total purchases or acquisitions of secondhand goods; and the
date when the merchant commenced the business under which the exemption is
claimed. Such application shall be filed under the same oath as is required for
a precious metals dealer permit, shall be notarized, and shall be accompanied
by a fee of five dollars ($5.00), which fee shall be retained by the local law‑enforcement
law enforcement agency as cost for administering claims for
exemptions.
The application for exemption, if granted, shall be valid for a period of 12 months. Thereafter, if the applicant seeks an exemption for the ensuing year he shall file an application for exemption 30 days before the expiration of the prior exemption.
If in any calendar month the percentage of precious metals
purchased by an exempted merchant exceeds ten percent (10%) of his total
purchases, he shall file notice thereof with the local law‑enforcement
law enforcement agency.
(b) Every merchant to whom an exemption has been issued pursuant to subsection (a) of this section shall maintain a record of each precious metals purchase that includes a clear and accurate description of the specific item or items purchased and the date of the transaction. Each record entry shall be made at the time of the transaction. These records shall be kept either (i) in a book or (ii) electronically.
The records kept by merchants to whom an exemption has been issued pursuant to subsection (a) of this section shall be open at all reasonable times to inspection on the premises by law enforcement agencies. If the merchant maintains a record book rather than electronic records, the book shall not be destroyed until two years after the last recorded transaction in the book. If the merchant maintains electronic records, a record entry shall not be deleted until two years after a transaction and the merchant shall provide a hard copy of the records upon the request of a law enforcement agency.
(c) Local law enforcement shall not issue an exemption under subsection (a) of this section after September 30, 2009. Exemptions issued by local law enforcement under subsection (a) of this section on or before September 30, 2009, shall remain in effect until 12 months after the date of issuance."
SECTION 4. G.S. 66‑166 is repealed.
SECTION 5. G.S. 66‑169 reads as rewritten:
"§ 66‑169. Records to be kept.
Every dealer to whom a permit has been issued pursuant to G.S. 66‑165
shall maintain a tightly bound book or books (not loose‑leaf), with
pages numbered in sequence, in which shall be recorded, at the time of any purchase
of precious metal, a serially numbered account and description of the specific
items purchased, including, if applicable, serially numbered records of
each and every precious metals transaction. Each serially numbered record shall
be made at the time of the transaction and shall contain a clear and accurate description
of the transaction. A valid description shall include each of the following
applicable and available items of information: the manufacturer's name, the
model, the model number, the serial number, and any engraved numbers or
initials found on the items, items; the date of the transaction,
transaction; and the name, sex, race, residence, telephone number
and driver's license number, if any, number of the person selling
the items purchased. Both the dealer and the seller shall sign the record
entry. purchased; and the signature of both the dealer and the seller.
In the event the seller cannot furnish his driver's license, valid,
unexpired photographic identification in the form of a drivers license, State‑issued
identification card, passport, or military identification card bearing
his photograph, card, the dealer shall require two forms of positive
identification.
The serially numbered records required by this section shall be kept either (i) in a paginated, bound book or set of books with pages numbered in sequence or (ii) in an electronic database that prevents record deletion and tracks all modifications to records and that provides for electronic signatures.
The record book records shall be open at all
reasonable times to inspection on the premises by law‑enforcement agencies
law enforcement agencies, and an individual record shall not
be destroyed retained for at least two years after a transaction. If a
dealer maintains a record book rather than an electronic database, the book shall
be retained until at least two years following the last transaction
which the record book reflects. recorded transaction. A copy of each
serially numbered record book entry shall be filed within 48
hours of the transaction in the office of the local law‑enforcement law
enforcement agency. Mailing the required copy to the local law‑enforcement
law enforcement agency within 48 hours of the transaction
shall constitute compliance with this section. If a dealer maintains an electronic
database, these records may be electronically reported to the local law enforcement
agency by transmission over a computer network, including the Internet, or by
facsimile machine in a manner authorized by the local law enforcement agency.
Regardless of whether the local law enforcement agency allows electronic
reporting, a dealer shall provide a hard copy of records upon the request of a law
enforcement agency.
The files of local law‑enforcement law
enforcement agencies which contain such copies of record book entries
records shall not be subject to inspection and examination as authorized
by G.S. 132‑6. Any public official or employee who shall knowingly
and willfully permit any person to have access to or custody or possession of any
portion of such files, unless the person is one specifically authorized by the
local law‑enforcement law enforcement agency to have access
thereto for purposes of law‑enforcement law enforcement investigation
or civil or criminal proceedings, shall be guilty of a Class 3 misdemeanor and
upon conviction shall only be fined fined, in the discretion of
the court court, but not in excess of up to five
hundred dollars ($500.00).
Every merchant to whom an exemption has been issued
pursuant to G.S. 66‑166 shall maintain a book in which shall be
recorded, at the time of any purchase of precious metal, a description of the
specific items purchased and the date of the transaction. This book shall be
open at all reasonable times to inspection on the premises by law‑enforcement
agencies and shall not be destroyed until two years following the last
transaction which the record book reflects."
SECTION 6. G.S. 66‑170 reads as rewritten:
"§ 66‑170. Items not to be modified.
No item included in a dealer purchase shall be sold, traded
or otherwise disposed of, melted, cut or otherwise changed in form nor shall
any such item be removed from the licensed premises for a period of five
days from the date the purchase was made. before the earlier of seven
days after the date the purchase ticket record is electronically reported in
accordance with G.S. 66‑169 or 30 days after the transaction."
SECTION 7. Article 25 of Chapter 66 of the General Statutes is amended by adding a new section to read:
"§ 66‑174. County and municipal ordinances.
Each county and city may by ordinance adopt additional rules and regulations consistent with and in furtherance of the provisions of this Article, including a requirement that applicants for a permit required by this Article consent to be fingerprinted or produce additional identifying information."
SECTION 8. Sections 1 and 2 of this act become effective October 1, 2009. Section 4 of this act becomes effective October 1, 2012. The remainder of this act is effective when it becomes law.