GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2009
H 3
HOUSE BILL 1637
Committee Substitute Favorable 7/6/09
Committee Substitute #2 Favorable 7/20/09
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Short Title: Modernize Precious Metal Business Permitting. |
(Public) |
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Sponsors: |
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Referred to: |
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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 similar record‑keeping requirements, to increase precious metals permitting fees, to require that a criminal history 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
purchases directly from manufacturers or wholesalers of precious metals for
their 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 An exempted transaction is one
that is (i) not considered in determining whether a person is a dealer under
this Article and (ii) not subject to the requirements of this Article, even if
it is entered into by a person otherwise defined and regulated as a dealer. Exempted
transactions are:
a. Purchases directly from manufacturers or wholesalers of precious metals by permanently located retail merchants for their inventories.
b. pawns or pledges Pawns, pledges,
or purchases of items made of precious metals under the provisions of
Chapter 91A of the General Statutes. metals, if the transaction is
entered into by a licensed pawnbroker under the provisions of Chapter 91A of
the General Statutes.
c. The acquisition of precious metals by a permanently located retail merchant through barter or exchange for other items sold in the ordinary course of the merchant's business, provided that the seller does not receive, as part of the transaction, any sum of money or any gift card or stored‑value card, unless the card is redeemable only at that merchant's business.
(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 county 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 or 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) 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.Permits.
(a) Dealer Permit. – Except as provided in
subsection (c) of this section, it shall be is 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. Safety shall approve the forms for both the application and
the permit. 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 conducting a precious metals
business, and each permit shall designate the location, place or premises to
which it applies. Such No business shall not be conducted
in any other a place other than that designated in the
permit, and no business shall be conducted or 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.home.
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 a permit within
each jurisdiction shall be ten dollars ($10.00)is one hundred eighty dollars
($180.00) to provide for the administrative costs of the local law‑enforcement
law enforcement agency, including the purchase of required forms.
forms and the cost of conducting the criminal history record check of
the applicant. The fee shall not be is not refundable even if
the permits are denied or later suspended or revoked. Such permits shall be A
permit issued under this section is in addition to and not in lieu of other
business licenses and are is not transferable. No person,
other than the dealer named on the permit and that dealer's employees, may engage
in the business of purchasing precious metals under the authority of the
permit.
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 The applicant's 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;years.
(2) Current address, and all addresses used by the
applicant during the preceding five years;years.
(3) Physical description;description.
(4) Age;Age.
(5) Driver's license number, if any, and state of issuance;issuance.
(6) Recent photograph;photograph.
(7) Record of felony convictions;convictions.
(8) Record of other convictions during the preceding
five years; andyears.
(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 These 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 These 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,who 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.state, unless the applicant has had his or her rights of
citizenship restored pursuant to Chapter 13 of the General Statutes for five
years or longer immediately preceding the date of application. 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,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.state,
unless that person has had his or her rights of citizenship restored pursuant
to Chapter 13 of the General Statutes for five years or longer immediately
preceding the date of application.
The Department of Justice may provide a criminal history
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 record 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) Employee Requirements. – Every employee
engaged in the precious metal purchasing business shall, within two business
days of being so engaged, register his or her name and address with
the local law‑enforcement law enforcement agency and have
his or her photograph taken by the agency. The employee shall also
consent to a criminal history record check, which shall be performed by the local
law enforcement agency. A person who refuses to consent to a criminal history record
check shall not be employed by a dealer required to be licensed under this
section. A person who 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, unless the
person has had his or her rights of citizenship restored pursuant to Chapter 13
of the General Statutes for five years or longer immediately preceding the date
of registration. The agency shall issue to him the employee 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 certificate shall be renewed annually for a three‑dollar
($3.00) fee and shall be posted in the work area of the permit holder.registered
employee. An employee is not subject to the requirements of this subsection if
the employee is engaged in the precious metals purchasing business only incidentally
to his or her main job responsibilities, and each precious metals transaction
with which the employee is involved is overseen by a licensed dealer or
registered employee. All records of transactions must be signed by the licensed
dealer or registered employee at the time of the transaction, as required under
G.S. 66‑169(a).
The Department of Justice may provide a criminal history record check to the local law enforcement agency for an employee engaged in the precious metals business. The agency shall provide to the Department of Justice, along with the request, the fingerprints of the employee, any additional information required by the Department of Justice, and a form signed by the employee 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 employee'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 record 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 employee a fee for conducting the checks of criminal history records authorized by this subsection.
(c) Special Occasion Permit. – 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) of this section shall
apply for a special occasion permit with the local law‑enforcement law
enforcement agency which that issued such the dealer's
permit. An application for a permit shall be on a form as approved by the The
Department of Crime Control and Public Safety shall approve the forms
for both the application and the permit. The application 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). subsection (a)
of this section. In addition, the applicant shall provide a physical address where
any item included in a dealer purchase will be held for the period required
under G.S. 66‑170. The physical address shall be located in the law
enforcement jurisdiction where the purchase was made. The items shall be
available at all reasonable times for inspection on the premises by law
enforcement agencies.
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,who 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.state, unless the applicant has had his or her rights of
citizenship restored pursuant to Chapter 13 of the General Statutes for five
years or longer immediately preceding the date of application. 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,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.state,
unless that person has had his or her rights of citizenship restored pursuant
to Chapter 13 of the General Statutes for five years or longer immediately
preceding the date of application.
The Department of Justice may provide a criminal history 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 record 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 filing fee for an application for a special
occasion permit application shall be ten dollars ($10.00) is one
hundred eighty dollars ($180.00) to provide for the administrative cost of
the local law‑enforcement law enforcement agency including
purchase of required forms. forms and the cost of conducting the
criminal history record check of the applicant. The fee shall not be is
not refundable even if the permit is denied or is later suspended or
revoked. Such permits shall be A special occasion permit is in
addition to and not in lieu of other business licenses and are is
not transferable. No person, other than the dealer named on the permit and
that dealer's employees, may engage in the business of purchasing precious
metals under the authority of the permit.
A special occasion permit shall be is 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 a nonrefundable
renewal fee of ten dollars ($10.00).one hundred eighty dollars ($180.00).
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 is repealed.
SECTION 4. G.S. 66‑169 reads as rewritten:
"§ 66‑169. Records to be kept.
(a) 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, consecutively numbered records of each precious metals
transaction. Each consecutively 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 or registered employee 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.
(b) The consecutively 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, tracks all modifications to records, and provides for electronic signatures.
(c) 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.
(d) A copy of each consecutively 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 agency within
48 hours shall constitute compliance with this section. Records shall be
filed in the manner authorized by the local law enforcement agency, which may
include reporting electronically by transmission over a computer network, by facsimile
machine, or by hand delivering hard copies to the local law enforcement agency.
In any case where a technological failure prevents a dealer from reporting
electronically or by facsimile, the dealer shall have the option of hand
delivering a hard copy of the record to the local law enforcement agency. Regardless
of the manner in which the local law enforcement agency allows reporting, a
dealer shall provide a hard copy of records upon the request of a law enforcement
agency.
(e) The files of local law‑enforcement
law enforcement agencies which contain such that contain 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
up to five hundred dollars ($500.00) in the discretion of the court.court
but not in excess of 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 5. 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 premises,
or other location specified on the application for a special occasion permit, for
a period of five seven days from the date the purchase was
made.transaction was reported in accordance with G.S. 66‑169."
SECTION 6. This act becomes effective October 1, 2009. No dealer who is required to be licensed under this act, but who was not required to be licensed prior to the effective date of this act, shall be guilty of engaging as a dealer in the business of purchasing precious metals without a license during the period between October 1, 2009, and January 1, 2010.