Town of Oyster Bay, NY Secondhand Dealers

There is no control in the Town of Oyster Bay governing the activities of those persons engaged in the business of buying and selling secondhand merchandise. Some of these dealers represent to those persons involved in crime an opportunity to dispose of stolen property. If the law enforcement agencies are to function, an ordinance regulating these secondhand establishments is necessary.

The ease with which some secondhand dealers buy and dispose of personal property indicates the need for the enactment of laws to control and regulate their everyday business transactions. A few of the dealers require scant or very often no identification when purchasing personal property, and rarely, if ever, is proof of ownership requested.

It is a fact that secondhand dealers are not required, at the present time, to forward reports of acquired used property to any of the police agencies. With the passage of this chapter, reports would be required from dealers in secondhand jewelry, marine equipment, antiques, cameras, coins, stamps, musical instruments, firearms, televisions, as well as stereophonic equipment. As a result of the reporting, there would be a marked increase in the number of restitutions for the sole reason that now these merchants would be committed to keeping accurate records of the used property purchased and disposed of by forwarding the proper reports to the police on a daily basis at the close of each business day.

This problem involving stolen property is not confined solely to the small dealers. Some of the very largest retailers in the nation, those whose stores are located in the Town of Oyster Bay, buy large quantities of old gold, jewelry and diamonds and forward not one single report of purchase to any police agency in the county. The scope for the exploitation of stolen property is further broadened due to the operations of these merchandising giants.

(5)

For small or large business enterprises to be allowed to continue to operate without laws to control and regulate the purchase of secondhand articles not only jeopardizes the property rights of many people but extremely hampers the police agencies in their efforts to recover stolen property and identify suspects.

Legislative intent.

The security involved in the handling of secondhand property has become a matter of concern to the police agencies charged with the duty and responsibility therein. With the increase in the incident of property thefts, the widespread use of alcohol and drugs, the decline in the value of the dollar, the increase in the price of gold and diamonds, the specter of inflation where barter becomes more of a reality, all point to the imperative that the best interests of the people of the Town of Oyster Bay would be served by the enactment of this chapter.

DEALER IN SECONDHAND ARTICLES

This chapter will ensure a dramatic rise in the percentage of the stolen property recovered, an increase in the probability that the general public will receive a fairer deal in their business transactions and will better the means to allow the police agencies to obtain more information necessary to apprehend perpetrators of crimes associated with the theft of property. Thereby the public health, morals and general welfare of the Town of Oyster Bay will be protected and promoted.

§ 192-3 Definitions.

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

Any person who in any way, as principal, broker or agent:

Deals in the commercial purchase or sale of secondhand articles for any purpose and of whatever nature, including but not limited to old gold or other precious metals, coins, stamps or currency, firearms, rifles, shotguns, cameras, business machines, musical instruments, outboard motors or electronic equipment.

Accepts or receives secondhand articles as returns of merchandise or in exchange for or for credits on any other articles or merchandise.

Deals in the commercial purchase or sale of pawnbroker tickets or other evidence of pledged articles.

§ 192-4 Applicability.

Nothing contained in this chapter shall be construed to apply to:

Automobiles, pianos, books, magazines, rugs, tapestries, artists' burlaps, paintings, sculpture, drawings, etchings and engravings.

The first purchase or sale in the country of any imported secondhand article.

The acceptance or receipt of merchandise in a new condition as a return, exchange or for credit or refund, if such merchandise was originally purchased as new merchandise from the person accepting or rereceiving the same, nor to any resale of such merchandise as new merchandise or the first subsequent nonretail or exchange of such merchandise as used merchandise.

The acceptance or receipt of merchandise in a used condition as a return, trade-in, exchange or for credit or refund if such merchandise was originally purchased as new merchandise from the person accepting or receiving the same, nor to the first subsequent nonretail sale or exchange of such merchandise.

The first sale, at retail, of merchandise which has been rebuilt by the manufacturer or vendor originally manufacturing it, or the licensed agents thereof, and sold as factory rebuilt merchandise.

A thrift shop, as defined to be so classified under the United States Internal Revenue Code, entitled to an exemption as an eleemosynary corporation or institution.

Antiques, which shall mean secondhand articles over 50 years of age, having a value of less than $250, and void of any means of identification. "Identification" shall mean articles which are serialized, monogrammed, initialed or distinctly marked.

§ 192-5 Proof of original purchase.

The burden of proof that an article was originally purchased from the person accepting 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. Evidence of an existing trade practice in the Town of Oyster Bay, if any, shall be admissible for the purpose of determining whether or not merchandise is in new or used condition.

§ 192-6 Interpretation of provisions.

In interpreting and applying the provisions of this chapter, the rule of interpretation applicable to remedial legislation shall be used so that the spirit and intent of this chapter shall be observed. All provisions shall be:

Considered as minimum requirements; and

Deemed neither to limit nor repeal any other powers granted to the Town of Oyster Bay under New York State statutes.

§ 192-7 Disclaimer of liability.

This chapter shall not create any liability on the part of the Town of Oyster Bay, its officers, agents or employees or the Nassau County Police Department, its officers, agents or employees, for any act or damage caused as a result from reliance on this chapter or any administrative decision lawfully made thereunder.

§ 192-8 Licenses.

It shall be unlawful for any person to act as a dealer in secondhand articles without a license therefor.

There shall be three types of licenses: general license; management license; and exposition license.

A general license shall authorize the licensee to act as a secondhand dealer with respect to all articles other than secondhand automobiles, within the Town of Oyster Bay during the license period specified in Subsection C of this section.

A management license shall authorize the licensee, who is not a dealer in antiques or unique secondhand articles, to operate and manage an antique or unique secondhand articles exposition where such antiques or unique secondhand articles are sold at any fair, show or exhibit or any place where this merchandise is offered for sale within the Town of Oyster Bay, during a period of one month from the date of issuance of such license.

An exposition license shall authorize a dealer in antiques or unique secondhand articles who maintains no place of business within the Town of Oyster Bay to exhibit and sell such articles at any fair, show or exposition within the Town of Oyster Bay, during a period of one month from the date of issuance of such license.

Bonds; fees; conditions.

Each dealer securing a general license shall furnish a bond to the Town of Oyster Bay, with sufficient surety to be approved by the Town Clerk in the penal sum of $2,000 conditioned for the due observance of the ordinance relating to such dealers.

Each manager of an antique or unique articles exposition shall furnish a bond to the Town of Oyster Bay, with sufficient surety to be approved by the Town Clerk in the penal sum of $2,000, conditioned for the due observance of the ordinance relating to dealers who are exhibitors at the exposition.

The annual license fee for licenses shall be as follows:

(a)

General or management license fee shall be $100 except that for any general or management license issued prior to October 1, 1981, the fee shall be $75.

(b)

Exposition license fee shall be $50; except that for any exposition license issued prior to October 1, 1981, the fee shall be $37.50.

All general licenses shall expire on the first day of October next succeeding the date of issuance thereof, unless sooner revoked or suspended. A new application for a license must be made yearly if the licensee desires to continue such activity.

All licenses shall be placed and at all times displayed in a conspicuous place at the licensee's place of activity of business for which it is issued.

All licenses are personal with the licensees. It does not go with title to the land nor may it be sold, assigned, transferred or disposed of.

Any license may be revoked or suspended by the Town Board of the Town of Oyster Bay after a hearing thereon pursuant to the provisions of § 192-20 herein, at which time the licensee shall have an opportunity to be heard.

The granting, refusal, revocation or suspension of any license by the Town Board shall be subject to review by certiorari after applicant or licensee has exhausted all administrative remedies.

Application for license. Applicants for a license under this chapter must file with the Town Clerk of the Town of Oyster Bay an application, supplied by the Town Clerk, containing the following information:

The name and description of the applicant. Individuals operating under a trade name must present a certified copy of the trade name certificate filed in the Nassau County Clerk's office. A partnership conducting business, whether or not under a trade name, must submit a certified copy of the partnership certificate filed in the Nassau County Clerk's office when partnership was formed. A corporation must furnish a photostatic copy of the filing receipt for the certificate of incorporation from the New York State Secretary of State. A corporation from outside New York State must furnish a photostatic copy of its application for authority to do business in New York State from the New York State Secretary of State.

The address of the applicant (local and legal).

That the applicant is of legal age.

That the applicant is a citizen of the United States, whether citizenship was obtained by birth or naturalization, or an alien lawfully admitted for permanent residence in the United States. If by naturalization, the date and place where obtained.

[Amended 6-15-2021 by L.L. No. 8-2021]

(5)

A statement as to whether or not applicant has ever been convicted of or now under charge of any crime, misdemeanor 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.

(6)

A description of the exact type of business applicant intends to conduct.

(7)

The name and address of the owner or owners of the land and the nature of the right of occupancy of the applicant to the use of such land.

(8)

Two photographs of the applicant, taken not more than 60 days prior to the filing of the application which photographs shall be two inches by two inches, showing the head and shoulders of the applicant in a clear and distinguishing manner. Two photographs and fingerprints are required of each individual applicant; two photographs and fingerprints are required of each partner; no photographs are required of corporate applicants, but all officers must be fingerprinted, as well as any stockholder of 10% or more of the stock.

(9)

If the applicant is a corporation, the name, address and title of officer of corporation upon whom process or other legal notice may be served.

(10)

A copy of the applicant's fingerprints shall be duly submitted to the New York State Division of Criminal Justice Services. Any fees required for fingerprinting shall be the responsibility of the applicant.

[Amended 6-29-2021 by L.L. No. 11-2021]

Issuance of license.

Upon receipt of the license application and upon the approval by the Town Clerk of the Town of Oyster Bay and the payment of the prescribed fees and bonds required of the applicant, the Town Clerk shall prepare and deliver to the applicant his license.

Every license issued hereunder shall be signed at the direction and in the name of the Town Clerk and sealed with the seal of the Town of Oyster Bay.

The Town Clerk shall keep a record of all licenses issued, as well as any other matters herein described.[1]

[1]

Editor's Note: Former Subsection I(4), which immediately followed and prohibited granting of a license to certain dealers in secondhand articles, was repealed 6-29-2021 by L.L. No. 11-2021. See Subsection J for current provisions on grounds for denial of a license.

Grounds for denial.

[Added 6-29-2021 by L.L. No. 11-2021]

The Town Clerk may deny a license or permit sought to be issued pursuant to this chapter, if he shall find that the requirements governing the issuance of the license or permit, as prescribed either by this chapter or the provisions of this Code or other ordinance rule or regulation requiring the license or permit, or the issuance of the license or permit or the issuance thereof have not been sufficiently complied with by the applicant.

In addition to the provisions of Subsection J(1), the Town Clerk may deny a license or permit for the following reasons:

(a)

If the applicant, or if the applicant is a firm or corporation, any of its members or officers or the person designated to manage or supervise the business, shall have been convicted of a misdemeanor or felony, which in the judgment of the Town Clerk renders the applicant unfit or undesirable to carry on the trade or occupation involved. Any decision regarding such applicant's fitness for a license must be made upon a review of the factors contained in New York State Correction Law §§ 701 through 703-b and 751 through 753; or

(b)

If the applicant, in the judgment of the Town Clerk, is deemed to be an undesirable person or incapable of properly conducting the activity, trade or business of a collateral loan broker; or

(c)

If the applicant has been found by any court of the state to have practiced any fraud, deceit or misrepresentation in the conduct of the collateral loan broker business unless the Town Clerk, after Town Board approval, shall decide in any particular case upon the facts there presented that it is proper to issue the license applied for; or

(d)

If the applicant's license issued under this chapter has been revoked at any time during the year prior to the time of the application for the license; or

(e)

If the applicant's license which has been issued pursuant to this chapter, has been suspended, and the period of such suspension has not expired at the time of this application for the license.

§ 192-9 Information to be kept; reports.

Every dealer in secondhand articles shall furnish to the Police Commissioner of Nassau County or his agent at such times, in such manner and at such intervals as shall be specified by the Police Commissioner, all information requested by the Police Commissioner relative to all records required to be kept under this chapter. Such information shall be supplied on forms to be designated and supplied by the Police Commissioner. Duly licensed dealers in antiques shall furnish daily reports of purchases of secondhand articles within 72 hours.

§ 192-10 Restrictions.

It shall be unlawful for any dealer in secondhand articles to engage in selling activities at any place other than the place of business designated in such license.

It shall be unlawful for any dealer in secondhand articles to purchase any secondhand goods or things from any person whom he knows to be or has reason to believe is a minor.

With the exception of duly licensed dealers in antiques, it shall be unlawful for any dealer in secondhand articles to purchase any secondhand goods or articles from any person between the hours of 10:00 p.m. and 7:00 a.m.

It shall be unlawful for any dealer in secondhand articles to sell or dispose of any secondhand articles, except articles purchased from another secondhand dealer duly licensed by the Town of Oyster Bay until the expiration of 15 business days after the acquisition by such dealer of such articles. Duly licensed dealers in antiques may sell or dispose of secondhand articles during a period of time prior to the expiration of said 15 days mentioned above, provided that the required record of purchases and sales are met pursuant to § 192-13 hereof.

[1]It shall be unlawful for any person licensed as a secondhand dealer to deal in the purchase or sale of any junk, old rope, old iron, brass, copper, tin, lead, rubber, paper, rags, bagging, slush or empty bottles or employ or use a boat, cart or other vehicle for the purpose of collecting any such things or materials, unless he is also licensed as a junk dealer therefor, as provided for in and pursuant to Chapter 139 of this Code of Ordinances entitled "Junk and Junk Dealers."

[1]

Editor's Note: Former Subsection E, prohibiting secondhand dealers licensed as pawnbrokers, was repealed 3-31-2009 by L.L. No. 3-2009. This local law also provided for the redesignation of former Subsection F as Subsection E.

§ 192-11 New articles to be labeled.

Every person licensed as a dealer in secondhand articles who also sells new articles within the licensed premises shall label all new articles in such manner that the public will be informed of the nature of such articles.

§ 192-12 Lost or stolen articles.

If any articles shall be advertised in any newspaper printed in the County of Nassau as having been lost or stolen and if any goods or articles answering such advertised description or any part thereof shall be in or come into the possession of any dealer in secondhand articles, 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 Police Commissioner of Nassau County or his agent. No disposition of such articles shall be effected until authorization to do so shall be given to such dealer by the Police Commissioner or his authorized agent. A dealer in secondhand articles, when notified by the Nassau County Commissioner of Police or his agent that property in his possession is stolen or alleged to be stolen, shall take immediate steps to secure that property, and it 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 the Police Commissioner of Nassau County or his agent allowing such removal or sale.

Every dealer in secondhand articles who shall have or receive any articles alleged or supposed to have been lost or stolen shall exhibit the same, on demand, to the Commissioner of Police of Nassau County or any authorized inspector of licenses, to any police officer or to any person duly authorized, in writing, by the Commissioner of Police to examine such articles, who shall exhibit such written authority to the dealer.

§ 192-13 Recordkeeping; inspections.

Every dealer in secondhand articles shall keep a bound book, in a form prescribed by the Commissioner of Police of Nassau County, of consecutively numbered transactions, in which shall be legibly written in English, at the time of every purchase or sale to or from a person other than a dealer in secondhand articles, a description of every secondhand article so purchased or sold, the number or numbers and any monograms, inscriptions or other marks of identification that may appear on such article, a description of the articles or pieces comprising old gold, silver, platinum, other metals or coins, stamps or currency 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.

Every dealer in secondhand articles who receives secondhand articles on consignment shall keep a record, in the above prescribed book, describing the articles and the name and description of the person or dealer such items are received from.

As between dealers, all transactions shall be recorded, in the above-prescribed book, and legible records kept describing the articles, including a detailed description of all jewelry and costume jewelry.

Such books shall be kept on the business premises of the secondhand dealership or at the place designated on the duly approved license, at all times during normal business hours. Such books shall be open to the inspection of any police officer, to the Commissioner of Police of Nassau County or any inspector of licenses or any person duly authorized, in writing, for such purposes by the Commissioner of Police of Nassau County, who shall exhibit such written authority to the dealer.

Duly licensed dealers in antique articles shall keep a record of bulk purchases in the bound book, noting the invoice number on each bulk purchase. All identifiable secondhand articles which are part of the bulk purchase shall be entered individually in the ledger book and reported individually to the Nassau County Police Commissioner within 72 hours after such bulk purchase.

Every dealer in secondhand articles shall make available all business premises and any and all rooms or portions of rooms thereof of the secondhand dealership at all times during normal business hours and all articles therein pertaining to said business for inspection by the Commissioner of Police of Nassau County or any inspector of licenses or any person duly authorized, in writing, for such purposes by the Commissioner of Police of Nassau County who shall exhibit such written authority to the dealer.

§ 192-14 Identification of sellers.

It shall be the duty of every secondhand dealer to verify the identity of every person 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.

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 signature of the person to whom issued.

Other identification documentation which, under the circumstances of any particular purchase, would lead a reasonable man to believe to be accurate and reliable, when identification under Subsection B(1) hereof is not available.

It shall be the duty of every dealer in secondhand articles to require that every person from whom an article is purchased sign his name in the presence of the secondhand dealer, and to compare the signature with the signature on the identifying document, if any, and retain on his premises the person's signature, together with the number and description of the identifying document, if any.

§ 192-15 Penalties for offenses.

[Amended 3-7-2023 by L.L. No. 4-2023]

A failure to comply with the provisions of § 192-8A and B, hereof entitled "Licenses," shall constitute a Class A misdemeanor, punishable by a fme not exceeding $1,000 or imprisonment for a period not exceeding one year, or by both such fine and imprisonment.

A failure to comply with any other section or sections of this chapter shall constitute a violation and shall be punishable by a fine not exceeding $250 or imprisonment for a period not exceeding 15 days, or by both such fine and imprisonment The continuation of an offense shall constitute a separate and distinct violation hereunder for each day the offense is continued.

In addition to the penalties provided above, any offense against the provisions of this chapter shall subject the person committing the offense to a civil penalty in the amount of $1,000 for each day that the offense shall continue, collectible by and in the name of the Town of Oyster Bay.

Conviction of any person or persons for any offense against the provisions of this chapter shall constitute and effect an immediate forfeiture of any and all licenses issued pursuant to this chapter to said person or persons.

In addition to the above-provided penalties and punishment, the Town Board also may maintain an action or proceeding in the name of the Town of Oyster Bay in a court of competent jurisdiction to compel compliance with the provisions of this chapter or to restrain by injunction an offense against this chapter.

§ 192-15.1 Violation of directives.

[Added 8-19-1997 by L.L. No. 6-1997; 3-7-2023 by L.L. No. 4-2023]

In addition to and notwithstanding any other remedy for any offense against this chapter, any person violating a directive issued by the Commissioner or his/her duly authorized representative, made pursuant to the provisions of this chapter, shall be guilty of a violation punishable by a fine not exceeding $900 or imprisonment for a period not to exceed 15 days, or both.

§ 192-15.2 Adjudication by the Bureau of Administrative Adjudication.

[Added 3-7-2023 by L.L. No. 4-2023]

Any person found by the Bureau of Administrative Adjudication to have violated any provision of this chapter shall be subject to a monetary penalty within the range of fines authorized by this article.

§ 192-16 Enforcement.

It shall be the duty of any police officer of the County of Nassau to require any person seen dealing in secondhand articles and who is not known by such police officer to be duly licensed, to produce or display his secondhand dealer's license and to enforce the provisions of this chapter against any person found to be violating the same.

§ 192-17 Reports of violations.

The Town Clerk of the Town of Oyster Bay shall record all convictions for violations of this chapter which are officially brought to her attention by any authorized agency or person.

§ 192-18 Revocation or suspension of license.

A license issued under the provisions of this chapter may be revoked or suspended by the Town Clerk after notice for any of the following causes:

Fraud, misrepresentation or false statement contained in the application for the license.

Any violation of this chapter.

Conviction of any crime or offense involving moral turpitude.

Conducting the activity as a dealer in secondhand articles in an unlawful manner or in such a manner as to constitute a breach of the peace or to constitute a menace to the health, safety or general welfare of the public.

Notice of revocation or suspension of a license shall be given in writing setting forth specifically the grounds of the complaint. Such notice shall be mailed, postage prepaid, to the licensee at his last known address, in accordance with §§ 192-8H and 192-10 hereof.

§ 192-19 Appeals.

The holder of any license which has been suspended or revoked and any applicant who shall have been denied a license under this chapter may apply for a review of the action of the Town Clerk as hereinafter provided:

Such application shall be in writing, signed and acknowledged by the applicant and shall state the ground or grounds on which the applicant claims that the determination of the Town Clerk was erroneous.

Such application shall be filed with the Town Clerk by the applicant within 20 days after notice of denial of his application or notice of suspension or revocation of his permit by the Town Clerk has been mailed to him or delivered to him in person.

Upon the filing of such application, a hearing shall be held thereon pursuant to the provisions of § 192-20 hereof.