Borough of Red Bank, NJ Chapter 500 Precious Metals and Gems

[HISTORY: Adopted by the Mayor and Council of the Borough of Red Bank by Ord. No. 2000-28 (Sec. 3-16 of the 1987 Revised General Ordinances). Amendments noted where applicable.]

§ 500-1 Definitions.

As used in this chapter, the following terms shall have the meanings indicated:

GEMS

Precious and semiprecious stones, jewels and gems of whatever nature.

PRECIOUS METALS

Gold, silver, platinum, palladium, and alloys thereof.

TRANSIENT BUYER

A buyer of precious metals who has not been in any retail business continuously for at least six months at the address in the municipality where he is required to register or who intends to close out or discontinue all retail business in the municipality within six months.

§ 500-2 License required.

No person shall engage in the business of purchasing precious metals or items composed of precious metals, gems and all forms of previously owned jewelry, either as a primary business or in connection with another business, without first having obtained a license from the Borough Clerk.

§ 500-3 Application procedure.

A. An application shall be filed with the Borough Clerk which shall set forth the applicant's age, residence and place of business and, in cases of corporate applicants, the date and state of incorporation, the principal office and the registered office of the corporation and the names and addresses of the corporate officers.

B. The Borough Clerk shall thereupon refer such application to the Chief of Police, who shall conduct such investigation of the moral character of the applicant or the applicant's officers and the business responsibility of the applicant as he deems necessary for the protection of the public welfare. Upon completion of the investigation, which in no event shall take more than 10 days, the Chief of Police shall forward his written recommendation to the Clerk. If the recommendation of the Chief of Police is to deny the license, the grounds for such denial shall be stated.

C. Grounds for denying a license may include information indicating that the applicant is not of good moral character or is of questionable business responsibility. In no event shall a recommendation to grant a license be made if the applicant has been convicted of any crime involving dishonesty, fraud, deceit or misrepresentation.

D. Upon receipt of the recommendation from the Chief of Police, the Borough Clerk shall issue or deny the license accordingly.

E. Any person aggrieved by such denial may appeal to the Borough Council, which shall hold a public hearing in connection therewith within 30 days from said appeal, and the Council shall thereafter affirm, modify or reverse the denial.

§ 500-4 Requirements at time of purchase.

Any person regulated by this chapter who buys, attempts to buy or offers to buy precious metals or gems (the buyer) from another person (the seller), shall first obtain from the seller a copy of his/her driver's license or voter's registration or similar identification. Buyer must also obtain from seller the following information: name, address, sex, date of birth, social security number and physical description. This information shall be recorded by the buyer on the precious metals sales form, a copy of which can be obtained from the Borough Police Department.

§ 500-5 Receipts.

The buyer of precious metals or gems shall issue to the seller and keep for his own records for not less than two years, a serialized receipt for each purchase of precious metals containing the following information:

A. The price being offered or paid by the buyer for precious metals expressed as price per standard measure of weight and fineness as prescribed by the New Jersey Superintendent of Weights and Measures.

B. The weights of the items being purchased;

C. A description of the items being purchased;

D. The names of the precious metals or gems purchased;

E. The fineness of the precious metal purchased;

F. The name and address of the buyer;

G. The date of the transaction;

H. The name, address and signature of the seller of the precious metals;

I. If the item purchased is a gem or piece of jewelry not bought on the basis of weight, the price being paid for the item together with a description of the item.

§ 500-6 Records.

Persons regulated by this chapter shall maintain for each purchase, for at least two years, a copy of the information obtained pursuant to § 500-4 of this chapter and a copy of the serialized receipt per § 500-5 of this chapter, and shall allow inspection of all records by any law enforcement officer upon demand and without need for advance notice. All records shall be kept at the licensee's place of business.

§ 500-7 List of items purchased.

Within 24 hours of the close of business each day, all persons regulated under this chapter shall deliver to the Police Department of the Borough of Red Bank, a copy of the precious metals sales form for all precious metals and gems purchased by them. Said form shall contain a description of each item, and identifying numbers, the date of purchase and the name and address of the seller.

§ 500-8 Waiting period prior to disposal.

No person regulated by this chapter shall sell, melt down, change the form of or otherwise dispose of any precious metals or gems purchased by him until after the expiration of 72 hours from the close of business on the date of purchase. All such items shall remain on the premises where the purchase was made for that entire time period. No waiting period shall be required if the merchandise is purchased from a person regularly engaged in the business of buying and selling precious metals and gems and licensed and regulated pursuant to a regulation of another municipality similar to this chapter and requiring a similar waiting period of not less than 72 hours.

§ 500-9 Minors.

No person regulated by this chapter shall purchase any precious metals or gems from anyone under the age of 18 years.

§ 500-10 Duties of licensee.

All persons regulated by this chapter shall:

A. Prominently display at the point of purchase the following:

(1) The license obtained from the Clerk.

(2) The prices being offered or paid by the buyer for precious metals expressed as price per ounce.

B. Include his name and address in all advertisements concerning such precious metals.

C. Weigh the precious metals in plain view of the seller on state-certified scales with the certificate of inspection clearly and prominently displayed.

D. Test the fineness of precious metals, if any test is so performed, in plain view of the seller.

§ 500-11 Transient buyers.

A transient buyer of precious metals or gems shall, in addition to the information required of a buyer of precious metals, provide the address at which he intends to do business in the Borough and shall reregister if he changes his location of doing business in the Borough or if he discontinues doing business for more than 20 days in the Borough and subsequently wants to resume doing business therein. Transient buyers shall also submit with their application to the Clerk, a copy of the surety bond required by the State of New Jersey pursuant to N.J.A.C. 13:47C-6.1.

§ 500-12 Fees.

The annual license application fee shall be $50, except that any person not regularly engaged in the business of buying and selling precious metals or gems in the Borough of Red Bank on the effective date of this chapter shall pay an initial application fee of $200 for his first year license, which fee shall defray the cost of investigation and processing of the application.

§ 500-13 Violations and penalties.

Any person who violates any provision of this chapter shall be liable to a mandatory penalty of not less than $100 nor more than $1,000, imprisonment up to 90 days, community service, or any combination thereof. Every day that a violation of this chapter shall continue shall be deemed a separate violation.