Borough of South River, NJ
Middlesex County
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Table of Contents
Table of Contents
[HISTORY: Adopted by the Mayor and Council of the Borough of South River 6-22-2009 by Ord. No. 2009-26. Amendments noted where applicable.]
GENERAL REFERENCES
General penalty — See Ch. 1, Art. I.
Fees — See Ch. 155.
Peddling and soliciting — See Ch. 255.

§ 257-1 Purpose.

The purpose of this chapter is to protect the public with regard to the ever-increasing sales of gold, silver, other precious metals and gems and to ensure that such purchases are bona fide and legal and that the seller is the lawful owner of said defined gold, silver, other precious metals and gems.

§ 257-2 License required; advertising.

A. 
No person, partnership or corporation shall engage in the business of the purchase of precious metals and gems and all forms of previously owned jewelry without first obtaining a license from the Borough Clerk. Said license shall bear a number issued by the Borough Clerk and shall be prominently displayed within the licensed premises.
B. 
Advertising in any print or electronic media or by sign that precious metals and/or gems are being bought in any location within the Borough of South River shall constitute engaging in business for the purpose of this chapter. No person shall place or cause to be placed any paid print advertisement for the purchase of gems and/or precious metals without stating in said advertisement the license number issued to the individual or entity by the Borough of South River. Failure to state or indicate the license number shall be a violation of this chapter.

§ 257-3 Definitions.

As used in this chapter, the following terms shall have the meanings indicated:
REGULATED ACTIVITY
The purchase of any item containing gold or silver or gems or any other precious metals, except for coins, for subsequent resale purposes and not for personal use.
SECONDHAND DEALER
Any person, partnership or corporation who, through any means, buys or sells gold, silver, precious metals or jewelry, and includes anyone advertising the purchase or sale of any of the aforementioned items. The business of secondhand dealer shall not be deemed to include:
A. 
Judicial sales or sales by executors or administrators.
B. 
Occasional or auction sales of household goods sold from private homes.
C. 
Auctions of real estate.
D. 
The occasional sale, purchase or exchange of coins or stamps by a person at his permanent residence or in any municipally owned building who is engaged in the hobby of collecting coins or stamps and who does not solicit the sale, purchase or exchange of such coins or stamps to or from the general public by billboard, sign, handbill, newspaper, magazine, radio, television or other form of printed or electronic advertising.

§ 257-4 Application process; issuance or denial of license; hearings.

A. 
Upon receipt of an application by the Borough Clerk completed pursuant to this chapter, the Police Department shall make an investigation of the prospective licensee pursuant to this chapter for the purpose of determining the suitability of the applicant for licensing. Such investigation shall include but shall not be limited to the following:
(1) 
The experience of the applicant in the business of purchase and sale of those articles or goods referred to in Subsection A of the definition of "secondhand dealer" in § 257-3 herein, although nothing in this section shall be construed to warrant denial of a license solely on the basis of lack of experience.
(2) 
The reputation of the applicant for fair dealing in the community, which shall be made among credible sources, which sources shall be disclosed to the applicant in the event of a denial of any license.
(3) 
Any criminal record of the applicant.
(4) 
The type of operation contemplated to be conducted by the applicant, particularly whether the business is to be operated from a fixed location, whether it is to be conducted from a location primarily devoted to the purchase and sale of those articles and goods referred to in Subsection A of the definition of "secondhand dealer" in § 257-3 herein, and other factors bearing upon whether the licensed business will be of a fixed and permanent nature. This section, however, shall not be construed to require denial of any license solely on the grounds that the business is not conducted from a fixed location.
B. 
The Police Department shall complete any investigation pursuant to this chapter within 30 days of the submission of the application to the Borough Clerk, fully completed by the applicant. If a criminal record check has been requested within the thirty-day period and has not been received by the Police Department within that period, the Chief of Police may, if all other factors are satisfactory, recommend a conditional issuance of the license subject to the finding regarding criminal record.
C. 
The Chief of Police shall, upon completion of the investigation, recommend grant or denial of the requested license to the Borough Council. The recommendation of the Chief of Police shall be in writing and, in the case of a recommendation of denial, shall state fully and specifically the reasons for said recommendation. If the Borough Council accepts the recommendation of the Chief of Police to deny any license, the Borough Council shall notify the applicant, by certified mail, within 10 days of such denial and forward to the applicant a statement of the reason or reasons for such denial. Grounds for recommending denial of a license by the Chief of Police may include reliable information indicating that the applicant has in the past engaged in fraudulent or deceptive business practices in a business identical to or similar to the business for which the applicant seeks a license pursuant to this chapter. A license may be denied if the investigation conducted by the Police Department reveals conviction of the applicant or any of its principal officers or employees of any crime or disorderly persons offense involving theft or receiving stolen goods, whether such conviction was as a principal or accessory, before or after the fact, or conspirator. Upon receipt of the recommendation of the Chief of Police, the Borough Clerk shall issue or deny the license accordingly.
D. 
In the event of a denial of the license by the Borough Council, the applicant shall be entitled to a hearing before the Borough Council, if requested, in writing, within 10 days of receiving the notice of denial, at which time the applicant shall be permitted to introduce such evidence as he/she shall deem proper. The burden of proof in any such hearing shall be on the Police Department. The Borough Council shall, within 10 days of the close of the hearing, make known its decision in writing. If the license is denied, 75% of the fees shall be retuned to the applicant, the balance going to offset the cost of the investigation.

§ 257-5 Application fee; bond; expiration of license.

A. 
An application for such license shall be filed with the Borough Clerk and shall be accompanied by a license fee as set forth in § 155-18.1 for the initial application and a fee as set forth in § 155-18.1 for each annual renewal for each premises on which the regulated activity is to be conducted. If, on the effective date of this chapter, a dealer has been in business for a period not less than one year, the fee for initial application shall be fee as set forth in § 155-18.1, and investigation pursuant to § 257-4 may be waived by the Borough Clerk.
B. 
Each licensee shall deliver a bond to the Borough Clerk, executed by the applicant as principal, with a surety company authorized to do business under the laws of the State of New Jersey as to surety. The bond, to be approved by the Borough Attorney, shall be in the penal sum of $10,000, conditioned for the due and proper observance of and compliance with the provisions and requirements of all ordinances of the Borough in force or which may be adopted respecting the conduct of this business and conditioned also that the bond shall be and remain for the benefit of any person or persons who shall have received judgment against any person licensed under this chapter by reason of any damage sustained by any such person as having made a sale to such licensee, due to dishonesty, fraud or deceit practiced in effecting the purchase of precious metals.
C. 
Each license shall expire on December 31 of the year in which it is issued.

§ 257-6 Records.

A. 
Each dealer shall record in a bound book, non-loose-leaf form, with all pages numbered in sequence, entries of receipts and disbursements, to be made in pen or ink. There shall be no space between entries, and each entry shall be numbered in sequence. All such ledgers shall be made available for inspection by any law enforcement official of the Borough of South River upon request and shall contain the following information:
(1) 
In the case of purchase:
(a) 
The name, address and telephone number of the seller of the item.
[Amended 5-12-2014 by Ord. No. 2014-10]
(b) 
The signature of the seller.
(c) 
A complete description of each item bought, along with a digital photograph of each item of used jewelry.
[Amended 5-12-2014 by Ord. No. 2014-10]
(d) 
The date and amount of the purchase.
(e) 
A photocopy of the seller’s photograph-bearing, valid state- or federal-issued driver’s license or other government-issued form of identification bearing a photograph.
[Amended 5-12-2014 by Ord. No. 2014-10]
B. 
These records shall be retained by the dealer for a period of one year and shall be subject to the inspection of any authorized police officer of the Borough of South River.
[Amended 5-12-2014 by Ord. No. 2014-10]

§ 257-7 Notification to the Police Department.

Upon completion of the said sale of precious metals, a completed copy of a South River Police, Record of Sale or Trade of Precious Metals Form, along with a photocopy of the identification utilized by the seller, will be delivered to South River Police Department with 24 hours of the transaction.

§ 257-8 Restrictions.

A. 
The licensee under this chapter shall retain any articles or goods referred to in the definition of "secondhand dealer" in § 257-3 herein in the form in which they were purchased for a period not less than 10 business days following the delivery of the record of the purchase of that jewelry to the Police Department.
[Amended 5-12-2014 by Ord. No. 2014-10]
B. 
No licensee under this chapter shall purchase any item covered by this chapter from any person under the age of 18.
C. 
If any licensee under this chapter shall be convicted of robbery, burglary, theft, receiving stolen goods or any other crime involving moral turpitude, the Borough Council of the Borough of South River may, after notice and hearing, revoke the license issued to such licensee.
D. 
A licensee shall have the right to change the location of the licensed business, provided that he notifies the Borough Clerk, in writing, of the street address of said new location.

§ 257-9 Violations and penalties.

Any person, as defined above, who violates any provision of this chapter shall, upon conviction thereof, be punished by a fine not exceeding $1,000 or by imprisonment for a term not exceeding 90 days, or both, within the discretion of the Municipal Judge. A separate offense shall be deemed committed in each day during or on which a violation occurs or continues.