[HISTORY: Adopted by the Legislature of the
County of Putnam 7-7-1983 by L.L. No. 4-1983; amended in its entirety 7-2-2013 by L.L. No.
6-2013.[1] Subsequent amendments noted where applicable.]
[1]
Editor's Note: This local law also provided for an effective
date of 10-1-2013.
It is hereby declared and found that, because of the increase
of incidents of property theft, the increase in the price of precious
metals and gems and the ease with which some secondhand dealers buy
and sell precious metals and gems without requiring identification
or proof of ownership, these secondhand dealers represent to persons
involved in crime an opportunity to dispose of stolen property. For
business enterprises to be allowed to continue to operate without
laws to control and regulate the purchase of such articles not only
jeopardizes the property rights of many people, but also extremely
hampers law enforcement agencies in their efforts to recover stolen
property and identify suspects. If law enforcement agencies are to
function in this area, a local law regulating secondhand dealers is
necessary. Thereby, the public health, morals and general welfare
of the County of Putnam will be protected and promoted and the best
interests of the people would be served by control and regulation
of secondhand dealers. It is the intention of the Legislature of Putnam
County that this chapter be established and shall constitute the complete
law in relation to the control and regulation of secondhand dealers
for the County of Putnam.
A.Â
DEPARTMENT
DIRECTOR
GEMS or PRECIOUS STONES
PRECIOUS METALS
SECONDHAND DEALERS
Unless the context specifically indicates otherwise, the meaning
of terms used in this chapter shall be as follows:
The Department of Consumer Affairs.
The Director of Consumer Affairs.
Shall include, but is not limited to mean, diamonds, alexandrite,
cymphophane, ruby, sapphire, opal, amethyst, smoky quartz, citrine,
rose quartz, spinel, malachite, turquoise, emerald, aquamarine, morganite,
garnet, lapis lazuli, jadeite, kunzite, topaz, tourmaline, zircon,
amber, jet, pearl, coral, tanzanite.
Gold, silver, platinum, iridium, ruthenium, osmium, or any
alloys of any one or more of said metals.
Any person, corporation, partnership, unincorporated association
and the agents or employees of such entities, engaged in the commercial
exchange, purchase and/or sale of secondhand articles for any purpose
and whatever nature, including and limited to any person dealing in
the purchase or sale of any secondhand manufactured article composed
wholly or in part of gold, silver, platinum or other metal, or in
the purchase or sale of gold, silver or platinum, or dealing in the
purchase of articles or things comprised of gold, silver or platinum
for the purpose of melting or refining, or engaged in melting precious
metals for the purpose of selling, or in the purchase or sale of pawnbrokers'
tickets or other evidence of pledged articles or, not being a pawnbroker,
who deals in the redemption or sale of pledged articles.
B.Â
This chapter shall not apply to or include the following:
(1)Â
Sales:
(a)Â
The sale is held on property occupied as a dwelling by the seller
or owner or rented or leased by a charitable or nonprofit organization
(e.g., yard sale, moving sale, garage sale, and the like); and
(b)Â
The items offered for sale are owned by the occupant or seller;
and
(c)Â
That no sale exceeds a period of 96 consecutive hours; and
(d)Â
That no more than three sales are held in any twelve-month period;
and
(e)Â
That none of the items offered for sale shall have been purchased
for resale or received on consignment for purpose of resale.
(2)Â
The sale of goods at an auction held by a licensed auctioneer, provided the auctioneer complies with all requirements of Article 3 of the New York State General Business Law and any other applicable statutes, rules and regulations pertaining to auctions and auctioneers.
(3)Â
Goods sold as bona fide antique, with the exception of antique jewelry,
or used furniture (i.e., a business in which at least 75% of the business'
revenue is derived through the sale of antiques, or used furniture).
(4)Â
Any not-for-profit or charitable organization that receives or sells
secondhand articles.
(5)Â
Any junk dealer or scrap processor licensed pursuant to Article 6 and/or Article 6-C of the New York General Business Law.
(6)Â
Coin shows, where:
(a)Â
The term "coin show" is defined as a gathering of coin dealers
and collectors with the purpose of dealers displaying their merchandise
for the general public to view and/or purchase;
(b)Â
Where the coin show is conducted by a New York State coin club,
such as the Empire State Numismatic Association;
(c)Â
Where the coin club holds the coin show for one day and only
once per calendar year; and
(d)Â
Where the coin club conducting the coin show provides the Putnam
County Department of Consumer Affairs and the law enforcement agency
for the jurisdiction with written notice of the time and place of
the coin show at least 10 business days prior to the coin show.
(7)Â
The acceptance of merchandise which is not secondhand as a return,
exchange, or for credit or refund if such merchandise was originally
purchased as new merchandise from the person accepting or receiving
same, nor to the resale of such merchandise.
(a)Â
The burden of proof that an article was originally purchased
from the person accepting it or receiving it, that it was the first
subsequent sale or exchange thereof to a person other than an ultimate
consumer, or that it was a first sale at retail of such factory rebuilt
merchandise shall be upon the person asserting the same.
A.Â
No person shall, within the County of Putnam, establish, engage in
or carry on, directly or indirectly, the business of dealing in secondhand
articles either separately or in conjunction with some other business,
without first having obtained and having in full force and effect
a license as provided herein.
B.Â
Such license shall be displayed in a conspicuous place at the designated
place of business of the licensee.
C.Â
Such license shall not in any way supplant the licensing and display
requirements of any applicable state or federal laws.
A.Â
Applications for secondhand dealer licenses shall be made to the
Director of Consumer Affairs (hereinafter the "Director"). The application
shall contain the following information:
(1)Â
Name and description of the applicant's business enterprise.
Individuals operating under a trade name shall present a certified
copy of the trade name certificate filed in the Putnam County Clerk's
office. A partnership conducting business, whether or not under a
trade name, shall submit a certified copy of the partnership certificate
which was filed in the Putnam County Clerk's office when the
partnership was formed. A corporation shall furnish a copy of its
certificate of incorporation, as well as its certificate of good standing
and, if a foreign corporation, its application for authority to do
business in New York State.
(2)Â
The applicant's legal address and address of all places of business
within Putnam County and the address of a designated agent for service
of process.
(3)Â
A description of the nature of the business to be conducted and/or
being) conducted by the applicant in Putnam County.
(4)Â
The name and address of the owner or owners of the business premises
and the nature of the right of occupancy of the applicant to the use
of said premises.
(5)Â
A statement that the applicant is at least 18 years of age.
(6)Â
A statement as to whether or not the applicant has, within the past
10 years, been convicted of a crime or violation of any municipal
ordinance, the nature of the offense and the punishment or penalty
assessed therefor and such other facts or evidence as is deemed necessary
to establish that the applicant is a person fit and capable of properly
conducting the activity or business for which the license is sought.
(7)Â
Two photographs of the applicant, taken not more than 60 days prior
to the date of application, which clearly depict the head and shoulders
of the applicant and which shall be two inches wide by two inches
tall.
B.Â
Such application for a secondhand dealer's license shall be
accompanied by a nonrefundable application fee of $250.
C.Â
Every applicant shall submit a bond or other surety to the County
of Putnam in the sum of $5,000, or for a renewal license, evidence
of a bond issued in favor of the licensee. The bond shall be for the
purpose of guaranteeing payments up to the face amount of the bond
for bank drafts or other negotiable instruments issued by the licensee
in exchange for the purchase of secondhand articles. All bonds must
be conditioned so that the licensee will observe all laws in relation
to secondhand dealers and will conduct business in conformity thereto.
Such bond shall remain in force during the entire period for which
the license is valid. The Director may establish rules and regulations
concerning the amount of a bond to be posted, upon proper notice to
the licensee.
Every license shall expire one year after its issuance. Every
license may be renewed upon payment of the required renewal fee in
the amount of $250, and filing a renewal application with the Director
no earlier than 30 days, and no later than 15 days before the license
is due to expire.
A.Â
A license may be denied, suspended, or revoked for any of the following
reasons:
(1)Â
Fraud, misrepresentation or false statements in the application for
license;
(2)Â
Fraud, misrepresentation or false statements made in the course of
carrying on the licensed business;
(3)Â
Any violation of this chapter; or
(4)Â
Conviction of a crime that involves theft, larceny, burglary, robbery,
and possession of stolen property or any other fraudulent dealing
within the past 10 years, subject to a review consistent with the
provisions of Article 23-A of the New York Correction Law.
B.Â
The initial determination to deny, suspend, or revoke a license under
this subsection shall be made in writing by the Director.
C.Â
Within 60 days of the initial determination to deny, suspend, or revoke a license under Subsections A through B above, an aggrieved applicant or licensee may request a formal hearing. Such request shall be addressed via certified mail to the Director of Consumer Affairs. Within a reasonable time thereafter, the Director shall appoint an independent hearing officer with the authority to compel the attendance of witnesses, administer oaths, take the testimony of any person under oath and in connection therewith require the production of any evidence relating to any matters affecting the determination. The applicant shall be advised of the hearing date and his/her right to be represented by counsel at said hearing. The hearing officer shall render his/her decision and recommendation to the Director within 30 days of the date of the hearing. The Director will notify the applicant/licensee within a reasonable time thereafter of his/her final determination with respect to the disposition of his/her license/application for license.
No license under the provisions of this chapter shall be transferred
or assigned to any person or used by any person other than the licensee
to whom it was issued, his agents, employees or duly authorized representatives,
said agents, employees or duly authorized representatives having been
approved by the Director.
A.Â
It shall be unlawful for a secondhand dealer to purchase any secondhand
articles from any person whom such dealer knows to be or has reason
to believe to be under the age of 18 years.
B.Â
It shall be unlawful for any secondhand dealer to sell or dispose
of any secondhand articles until the expiration of 14 days after the
acquisition by such dealer of said secondhand article.
(1)Â
All articles subject to this holding period shall be available for
inspection by the County or any local law enforcement agency.
C.Â
It shall be unlawful to cause, allow or approve of the blockage,
obstruction or concealment from the view of the consumer any scale,
machine, weighing device or part thereof used to weigh or calculate
the value of precious metals or gems. Only devices approved for use
in trade by the New York State Department of Agriculture and Markets
shall be lawful.
D.Â
No weighing or measuring device shall be used in the purchase or
sale of precious metals or gems within Putnam County without first
notifying the Director, or his/her designee, of its intended use.
E.Â
It shall be unlawful for a secondhand dealer to purchase secondhand
articles from any person between the hours of 10:00 in the evening
and 6:00 in the morning.
F.Â
It shall be unlawful for a secondhand dealer to purchase secondhand
articles from any person who appears to be intoxicated or of unsound
mind.
G.Â
It shall be unlawful for a secondhand dealer to purchase secondhand
articles from a person who is unable to produce proper identification.
(1)Â
For purposes of this section, proper identification shall be a valid
United States passport; a New York State driver's license; or
equivalent state-issued picture identification that contains the person's
name, a physical description, and current address. Social security
cards, draft registration cards, voter registration cards, school
or college identification cards, and comparable documents shall not
be considered sufficient identification for the purpose of this chapter.
H.Â
It shall be unlawful for any secondhand dealer to engage in buying
activities in any place within Putnam County other than the place
of business designated in such license, except to meet with a customer
at his home, bank or suitable place of business. However, when purchases
or sales are made at locations other than the premises of such an
establishment, the licensee must note the location where the transaction
took place in addition to the records required by this chapter. A
secondhand dealer may, upon application to the Director and receiving
approval of the Director, temporarily extend his license to cover
other locations within the County of Putnam, such as flea markets,
fairs, bazaars or religious or charitable organization functions.
I.Â
It shall be unlawful for a secondhand dealer to continue to carry
on business after his license is suspended, revoked, or has expired
and has not been renewed.
J.Â
It shall be unlawful for any secondhand dealer to damage, destroy, alter or in any way change or direct or request anyone else to alter or change the structure or makeup of a precious metal or gem so as to make it unidentifiable within 14 days after the acquisition by said dealers of such precious metal or gem. In the event that said secondhand dealer damages, destroys, alters or in any way changes the precious metal or gem, the secondhand dealer shall restore the precious metal or gem to its original condition as much as is possible, provided that the secondhand dealer receives a written request to do so from the owner of said item and law enforcement agency within the time limits set forth in this Subsection J.
The unit daily price of each type and class of precious metal
shall be clearly displayed in Arabic numbers in such a manner that
the public will be informed of such prices.
If any articles composed wholly or in part of precious metals
or gems shall be advertised in any newspaper printed or circulated
in the County of Putnam or reported by law enforcement as having been
lost or stolen, and if any articles answering such advertised description
or any part thereof shall be in or come into the possession of any
licensed dealer, upon receiving actual written or oral notice of the
similarity of description of such articles, such dealer shall immediately
give information relating thereto to the appropriate law enforcement
agency. No disposition of such articles shall be effected until authorization
to do so shall be given to such dealer by the appropriate law enforcement
agency. The failure of the law enforcement agency within 30 days to
give the dealer further written notice that the articles are actually
lost or believed to be stolen and are needed in connection with a
pending investigation or prosecution shall constitute authorization
to dispose of said articles.
A.Â
No secondhand dealer shall acquire an item specified herein, whether
within the physical place of business or off site, within Putnam County,
unless such secondhand dealer has requested, obtained and recorded
the following information in English:
(1)Â
The amount paid or advanced for the article;
(2)Â
A detailed, complete and accurate description of the article, including
but not limited to identifying marks, such as, but not limited to,
monograms, engravings, and inscriptions;
(3)Â
If applicable, the article's serial number, make and model number;
(4)Â
In the case of precious metals, jewelry, gems or precious stones,
a photograph of the article;
(5)Â
Identification information, as described in Subsection C below, of the person offering the article for sale;
(6)Â
A physical description of the person conducting the transaction;
and
(7)Â
The date, time and place of the transaction.
B.Â
A bill of sale and/or receipt MUST be given, and a copy retained
by the secondhand dealer. Any bill of sale and/or receipt must be
numbered in consecutive order and issued in the same order.
C.Â
Identification Information.
(1)Â
Every secondhand dealer MUST request identification from the seller
and compare the photographic image to the seller to verify the identity
when acquiring a secondhand article. The secondhand dealer shall record
the name, date of birth, address or current address (if different
than that on the identification), and the identification number (i.e.,
motorist identification number on a driver's license) of the
seller's identification. However, if the acquisition is made
from another secondhand dealer, then the secondhand dealer purchasing
the item shall record the date, time, business name and address of
the secondhand dealer selling the item and the number of days the
article was held prior to acquisition. Purchases between secondhand
dealers do not require photographic identification.
(2)Â
Only the following shall be deemed acceptable evidence of identity:
a valid United States Passport; a New York State Driver's License;
or equivalent state-issued picture identification that contains the
person's name, a physical description, and current address. Social
security cards, draft registration cards, voter registration cards,
school or college identification cards, and comparable documents shall
not be considered sufficient identification for the purpose of this
chapter.
D.Â
Records retention/inspections.
(1)Â
Every secondhand dealer shall maintain the information required pursuant
to this section in a secure location for a minimum period of five
years. Every secondhand dealer shall allow any records kept pursuant
to this chapter and all articles of secondhand merchandise therein,
to be examined during normal business hours by any member of law enforcement,
the Director or his/her designee. Computerized records can be used
to satisfy the requirements of this chapter, provided that such records
include the information herein and are available for inspection in
printed format upon request.
(2)Â
Additionally, every secondhand dealer shall electronically report each article purchased using a computer program approved by law enforcement and the Director during the sale. Such reporting will include the required information described in Subsections A and C of this section of this chapter. Jewelry, gems and precious stones are NOT to be transmitted with these records. Further, nothing in this section shall be construed as to prevent law enforcement from requesting the form required hereunder to be filed on such other date or at such other times and frequency as exigency or law enforcement need may require. Law enforcement shall establish by rule the format and requirements of the transmission of data and may restrict the scope of the items that are to be electronically reported.
E.Â
Law enforcement hold. A secondhand dealer, when notified by law enforcement
that property in his/her possession is stolen or alleged to be stolen,
shall take immediate steps to secure that property and such property
shall be marked "POLICE STOP." Thereafter, such property shall not
be sold or removed from the premises until notification is made to
the dealer in writing by law enforcement allowing such removal or
sale.
It shall be unlawful for a secondhand dealer to make a payment
in cash money to any seller or pledger.
Every secondhand dealer shall furnish to the appropriate law
enforcement agency all information requested by such agency relative
to all records required to be kept under this chapter.
It shall be the duty of any member of law enforcement, or the
Department of Consumer Affairs, having jurisdiction at the site where
a person is seen dealing in secondhand articles to enforce the provisions
of this chapter against any person found to be in violation of this
chapter.
This chapter shall not create any liability on the part of the
County of Putnam, its officers, agents or employees or any member
of law enforcement for any act or damage caused as a result of reliance
on this chapter or any administrative decision lawfully made thereunder.
If any section of this chapter or the application thereof to
any person or circumstance shall be adjudged invalid by a court of
competent jurisdiction, such order or judgment shall be confirmed
in its operation to the controversy in which it is rendered, and shall
not affect or invalidate the remainder of any other provision or any
section or the application of any part thereof to any other person
or circumstance and to this end, the provisions of each section of
this chapter is hereby declared to be severable.
This chapter shall apply to actions or transactions occurring
on or after the effective date of this chapter.