[HISTORY: Adopted by the Town Board of the Town of Wallkill 10-22-2009 by L.L. No.
7-2009.[1] Amendments noted where applicable.]
GENERAL REFERENCES
Drug paraphernalia — See Ch. 106.
Junk dealers — See Ch. 145.
Peddling and soliciting — See Ch. 182.
[1]
Editor's Note: This local law also repealed former Ch.
187, Precious Metals or Gems, Dealers in, adopted 7-23-1981 by L.L.
No. 4-1981.
The Town Board of the Town of Wallkill finds that the value
of gold and other precious metals has created an increase in criminal
activity in same. This fact, coupled with the ease of disposition
of such metals, has resulted in an alarming rise in the number of
crimes, particularly burglaries. The Town Board finds that the most
efficient way to deal with this problem is to regulate the available
sources of disposition of such precious metals to protect both the
people of the Town and the many honest business people in this field.
As used in this chapter, the following terms shall have the
meanings indicated:
Any person engaged in the business of purchasing precious
metals or gems or objects containing precious metals or gems, but
shall not include a licensed dentist.
One or more precious or semiprecious stones, either uncut
or cut and polished for an ornament, or any object containing such
a stone.
That part of a coinage or issue which has been used in exchange
or has been used to commemorate a person or event, which term includes
coins, tokens, commemorative medals and any metal coin admitted duty-free
under the Tariff Schedules of the United States, pursuant to the Tariff
Classification Act of 1962, as amended.
One or more persons of either sex, a firm, a partnership,
a corporation, or any individual representative or agent thereof.
The Orange County Sheriff and the Town Police.
Gold, silver or platinum, iridium, ruthenium, osmium or any
one or more of said metals or any object made in whole or part therefrom.
Sale of an object containing precious metals or gems directly
to the consumer on the premises where manufactured.
Any person who sells an object or objects containing precious
metals or gems to a dealer or transient dealer in precious metals
or gems.
Any person engaged in the business of purchasing precious
metals or gems or objects containing precious metals or gems, who
does not have a regular, fixed place of business within a county within
the state which he owns, rents or leases for the purpose of consummating
such purchases and in which a transaction described herein occurs.
An establishment in which an object containing precious metals
or gems is manufactured for sale or distribution other than for retail
sale directly to the consumer on the premises where manufactured.
It shall be unlawful for any person to act as a dealer in precious
metals or gems or as a transient dealer, as defined herein, unless
such dealer shall have complied with the provisions of this chapter
and obtained the required certificate of registration or license from
the Town Clerk after review and approval by the Building Inspector/Code
Enforcement Officer for each location from which the dealer conducts
business and submitted to the police a duplicate copy thereof within
48 hours after obtaining said certificate of registration. Each certificate
of registration shall expire on December 31 of each year.
A.
No license shall be granted to a person less than 18 years of age.
B.
No license shall be issued to a person who has been refused a license
within the past 12 months or who has had a license revoked within
the past 12 months unless the applicant can show that the reasons
for such rejection or revocation no longer exist.
C.
No license shall be issued to a person convicted of any felony or
of a misdemeanor or other offense, if the same involved violence,
dishonesty, deceit, or moral turpitude.
D.
No license shall be issued to any applicant without a street address
being listed on the application. Post office boxes are not sufficient.
E.
No license shall be issued to any applicant who refuses to provide
valid photo identification.
A.
Any person required to obtain a license under this chapter shall
file with the Town Clerk a written application, together with an employer's
authorization if required, sworn to before a notary public, upon a
form approved by the Town Board.
B.
The applicant shall pay a nonrefundable application fee.
C.
The applicant shall complete an authorization permitting the Town,
its agent or designee, to perform a background investigation of the
applicant and entitling the Town, its agent or designee, to obtain
information concerning the applicant's prior criminal record,
if any, and prior employment history.
D.
The applicant shall indicate the location, including section, block
and lot where any dealing in precious metals or gems will be done.
Any proposed changes in location must be made in writing to the Town
Clerk, who shall refer the request to the Town Building Inspector
or Code Enforcement Officer for approval.
E.
An applicant must provide proof of liability insurance in the amount
of no less than $1,000,000 per occurrence.
F.
Employees, or any other individual who will assist the applicant,
whether or not that individual will receive payment or other form
of remuneration or compensation from the applicant, must be included
in the application and, if the license is granted, must wear a photo
ID at all times. It is the responsibility of the licensee to confiscate
any ID badges of employees or assistants who no longer represent the
applicant and return them to the Town Clerk. An additional fee for
employee or assistant processing will be charged.
G.
The Town Clerk shall review the application to determine whether
or not it is complete and the appropriate fee has been paid. If the
application is complete and the appropriate fee has been paid, the
Town Clerk shall, within five business days, forward the application
to the Town Building Inspector/Code Enforcement Officer for review
and/or approval. The Building Inspector/Code Enforcement Officer shall,
within 10 business days of receipt of the application, either deny
or approve the application in writing, stating any reasons for the
denial of license.
H.
An applicant who has been denied a license may appeal the denial
to the Town Board. Appeals to the Town Board must be made within five
days of the mailing of the denial by certified mail by the Town Clerk
or Building Inspector/Code Enforcement Officer. Upon approval by the
Town Board, the Town Clerk shall issue a license signed by the Clerk,
authorizing the holder thereof to conduct business under the terms
of this chapter.
A.
All places dealing in precious metals or gems shall be handicapped
accessible.
B.
All applicants licensed hereunder are required to maintain continual
compliance with all applicable federal, state and local laws. Any
applicant licensed pursuant to this chapter shall immediately notify
the Town Clerk, in writing, of their receipt of any notice of violation,
summons, judgment, warrant, lien or other matter or process related
to the proposed or actual suspension, revocation, expiration, cancellation
or loss of privileges or good standing concerning any license, permit,
approval or privilege required to conduct their business, including,
but not limited to, matters concerning insurance coverage, tax liens,
tax warrants, and the like.
C.
The license is to be conspicuously posted within the place at which
the dealer or transient dealer is conducting business.
D.
Photo ID is to be visible at all times.
A.
The application fee, license fee, and/or other fees associated with
providing approvals for dealers, their employees and/or assistants
shall be set by resolution of the Town Board.
B.
(Reserved)
C.
All licenses shall expire on December 31 of each year. Applicants
and former licensees must submit an application in compliance with
the requirements of this chapter, and any other applicable provisions
of the Town Code, for any year or part thereof during which they wish
to deal in precious metals or gems.
A.
The Town Building Inspector/Code Enforcement Officer may, for a violation
of this chapter or any other law, or otherwise for good cause shown,
revoke any license after notice and an opportunity for the licensee
to be heard regarding the proposed revocation, by delivering to the
licensee, either in person or by mailing address given in the application,
notice of such proposed revocation in writing and stating therein
the reason or reasons for such proposed revocation. A license so revoked
shall be returned to the Town Clerk within four days of revocation.
B.
The applicant or licensee shall be entitled to a hearing before the
Town Board upon any claim that a license was wrongly refused or revoked.
It shall be the duty of the Town Clerk to keep a record of all
applications received and all licenses granted under the provisions
of this chapter, in which shall be recorded the names and addresses
of persons licensed, the amount of fees paid, and all other pertinent
data concerning the issuance of licenses under this chapter. All licenses
issued and all records pertaining thereto shall contain the name and
address of the licensee and the date of expiration of said license.
A.
Each certificate of registration issued pursuant to this chapter
shall:
B.
Record of purchases. Every dealer and transient dealer shall keep
a bound book, in a form approved by the Town Clerk, of consecutively
numbered transactions, in which shall be legibly written in English,
at the time of every purchase from a person other than a dealer, a
description of every article so purchased or sold, the number or numbers
and any monograms, inscription or other marks of identification that
may appear on such article, a description of the articles or pieces
comprising precious metals and gems, and any monogram, inscription
or marks of identification thereon, the name and residence address
of the person from whom such purchase was made and the day and hour
of the purchase.
C.
It shall be the duty of every dealer and transient dealer to verify
the identity of every person, other than a dealer, from whom he purchases
an article and to make and keep a written record of the nature of
the evidence submitted by such person to prove his identity.
D.
Only the following shall be deemed acceptable evidence of identity:
any official document, except a social security account number card,
issued by the United States government, any state, county, municipality
or subdivision thereof, any public agency or department thereof or
any public or private employer which requires and bears the signature
of the person to whom issued or, when such identification is not available,
other identification documentation, the use of which, under the circumstances,
would not constitute criminal negligence on the part of the dealer
or transient dealer.
E.
It shall be the duty of every dealer or transient dealer to require that every person other than a dealer from whom an article is purchased sign his name in the presence of the dealer or transient dealer and to compare the signature with the signature on the identifying document. In addition, it shall be necessary to provide the following physical description: date of birth, sex, height and color of eyes and to retain on his premises the person's signature, together with the number and description of the identifying document and the number of the transaction, as required by Subsection B of this section.
F.
Every dealer in precious metals or gems, except a transient dealer
as defined herein, shall, within three business days of any purchase
of precious metals or gems or of an object containing precious metals
or gems, give written notice of such purchase other than from a dealer
on a form approved by the Town Clerk to the police.
G.
Every transient dealer shall, however, within 24 hours, deliver to
the police written notice of every purchase made of precious metals
or gems on a form approved by the Town Clerk.
H.
Such records shall be subject to inspection during normal business
hours by the police or any administrative agency having jurisdiction
over such dealer or transient dealer pursuant to this chapter. Such
records shall be preserved for four years after purchase.
A.
Record of purchases. Every dealer and transient dealer shall keep
a bound book, in a form approved by the Town Clerk, of consecutively
numbered transactions, in which shall be legibly written in English,
at the time of every purchase from a person other than a dealer, the
following:
(1)
Description of every article purchased, including a general description
of the article (e.g., wristwatch), a description of any pieces of
the article comprising precious metals and gems, and any monogram,
inscription, make or model information, or other mark of identification
on the article;
(2)
Description of the seller, including name, residence address, date
of birth, sex, height, and eye color;
(3)
Seller's signature;
(4)
Description of the evidence submitted by the seller to prove his
identity; and
(5)
Date, time, and location of the purchase.
B.
Photograph of purchases and proof of identity. Every dealer or transient
dealer shall photograph each purchased item when the paid value of
the item exceeds $100. When the total paid value of all items purchased
by a dealer or transient dealer from a single seller on a single day
exceeds $100, the dealer or transient dealer shall photograph the
entire group of items purchased from said seller. Each photograph
shall also contain the image of the documentation proffered by each
seller as proof of identity. The dealer or transient dealer must photograph
the item or items, together with the documentation, at the time the
item or items are purchased from the seller, and the photographs must
be developed or printed in color on photograph-quality paper within
five business days of the date of purchase of the photographed article.
Each developed or printed photograph must be marked with a transaction
number associating it with the appropriate record or records of purchase.
C.
Thumbprint of seller. Every dealer or transient dealer shall take
a thumbprint of each seller. Each thumbprint must be marked with a
transaction number associating it with the appropriate record or records
of purchase.
D.
Such records, photographs, and thumbprints shall be subject to inspection
during normal business hours by the police or any administrative agency
having jurisdiction over such dealer or transient dealer pursuant
to this chapter. Such records shall be preserved for four years after
purchase.
A.
Every dealer in precious metals or gems, except a transient dealer
as defined herein, shall, within three business days of any purchase
of precious metals or gems or of an object containing precious metals
or gems, give written notice of such purchase other than from a dealer
on a form approved by the Town Clerk to the police.
B.
Every transient dealer shall, however, within 24 hours, deliver to
the police written notice of every purchase made of precious metals
or gems on a form approved by the Town Clerk.
In no event shall any precious metals or gems purchased by a
dealer or transient dealer be sold, assigned, or transferred, or melted
down until 10 business days after service of notice upon the police
shall have been completed as set forth in this section.
A.
Service of notice to police by mail shall be deemed to have been
completed five days, exclusive of Sunday or such holiday on which
there is no regular United States postal delivery, after said notice
has been mailed to the police by depositing same in an official depository
of the United States Postal Service within the state.
B.
Personal service of notice upon the police shall be deemed to have
been completed when said notice has been personally delivered to the
police by the dealer or transient dealer or his or her employee or
agent.
A.
It shall be unlawful for any dealer or transient dealer to purchase
any precious metals or gems from any person whom he knows to be or
has reason to believe is less than 18 years of age.
B.
It shall be no defense to a prosecution for a violation of this chapter
that, in the transaction upon which the prosecution is based, such
person acted as the agent or representative of another or that the
defendant dealt with such person as the agent or representative of
another.
C.
No person registered as a dealer in precious metals or gems may engage
in the business of a pawnbroker unless also licensed as a pawnbroker
pursuant to Article 5 of the General Business Law. All persons both
registered as dealers in precious metals or gems and licensed as pawnbrokers
shall post a conspicuous notice, to be clearly visible to all customers
entering each place of business of such person, stating that customers
may freely choose to either pawn or sell property to such persons.
Failure by a dealer or transient dealer to comply with any of
the provisions of this chapter shall be an offense punishable as follows:
A.
A first offense shall be a violation punishable by a fine of not
less than $500 and not more than $1,000.
B.
A second or subsequent offense shall be a misdemeanor punishable
by a fine of not less than $500 nor more than $1,000 or imprisonment
for not more than one year, or both such fine and imprisonment.
The provisions of this chapter shall not apply to:
A.
Transactions involving the wholesale manufacture of an object including
precious metals or gems and other industrial and manufacturing uses,
including dentistry and dental supplies.
B.
Transactions between dealers and wholesale manufacturers.
C.
Transactions engaged in by any bank, trust company, savings institution
or licensed transmitters of money and their registered agents, affiliates
and subsidiaries incorporated under the laws of and/or subject to
the examination, supervision and control of any state or of the United
States, investment advisors or broker-dealers registered under the
Securities Exchange Act of 1934 or merchants, brokers, pool operators
or advisors registered under the Commodity Exchange Act (7 U.S.C.
§ 1 et seq.).
No pawnbroker shall purchase, directly or indirectly, any precious
metals or gems offered to him as a pawn or pledge, nor shall it be
lawful for any such pawnbroker, licensed as aforesaid, to engage in
any such secondhand business, unless also registered as a dealer in
precious metals or gems pursuant to this chapter.
