As a result of an inordinate amount of stolen precious metals and gems
and the inability to trace the source of these items, the governing body,
in consultation with the local Police Department, has determined that there
is a strong need to regulate and control the so-called secondhand market for
these precious metals and gems, it being somewhat apparent that the buying
and selling of these secondhand or used items perpetuates the commerce of
illegal activities.
As used in this chapter, the following terms shall have the indicated
meanings, unless the context clearly indicates otherwise:
BUYER
Any person or entity who through any means buys any of the metals
or gems set forth in the definition of covered transaction.
COVERED TRANSACTION
Any purchase or sale of used or secondhand precious metals, gems,
gold, silver, jewelry or other semiprecious metals or gems.
DEALER
Any person or entity who through any means buys or sells any of the
items mentioned in the definition of covered transaction. This includes anyone
advertising the purchase or sale of any of the aforementioned items.
GOLD
Any article or product with a gold content, without regard to the
weight or quality thereof.
MINOR
Any person under the age of 18 years.
PRECIOUS OR SEMIPRECIOUS GEMS
Those items commonly referred to as "jewels," but this definition
would include diamonds, rubies, pearls, sapphires and other like items.
PURCHASE
Includes any exchange of gold, silver or other precious or semiprecious
gems or metals for anything of value.
SILVER
Any article or product with a silver content, without regard to the
weight or quality thereof.
This chapter shall not affect persons and entities selling items covered
by this chapter which have been purchased from dealers, manufacturers or wholesalers
who are normally in the business of manufacturing and/or selling said items.
On the other hand, this chapter does cover those persons or entities purchasing
the aforesaid items from the general public for resale or use.
No person or entity shall engage in any covered transaction, as defined
above, without complying with this chapter and obtaining a license therefor.
Said license shall be obtained from the Borough Clerk and shall be prominently
displayed within the licensed premises. The requirement of a license shall
apply to the business entity and to any individual employees who engage in
a covered transaction. A license is required even for temporarily engaging
in any covered transaction.
A fee of $100 shall be paid to license premises where the covered transaction
is conducted, together with a fee of $25 for each individual who was employed
at the time of the licensing of the premises. The fee of $25 is continuing
and shall be paid for any individual who is hired at any time after the licensing
for the premises.
Each license shall be operative for the calendar year in which it has
been purchased. It shall expire on December 31 of the year of issue. There
will be no partial licenses.
The application for a license shall be filed with the Clerk, who shall
furnish a copy of the application to the Chief of Police. The application
shall be in the general format as follows:
A. Name under which business is to be conducted.
B. Name and address of applicant. If a corporation, the
names and addresses of the president and secretary. If a partnership, the
names and addresses of all partners.
C. Nature of the business and address where it is to be
conducted.
D. Number of motor vehicles used. The identification number
for each vehicle, including the license plate number and registration.
E. Residence of any individual applicants during the past
five years.
F. Applicant has never had a license to conduct the described
business which has been denied or revoked, except as follows:
G. None of the individual applicants have ever been convicted
of crimes, except:
H. Social security number of all individual applicants.
I. The following language shall be used:
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The undersigned applicant authorizes the appropriate local municipal
officials to make inspections of the licensed premises, during the times when
the business is open and in operation.
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The undersigned have completed the answers to this application in order
to induce the municipality to issue the license. Furthermore, the undersigned
agree to comply with all local relevant ordinances, rules and regulations.
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After the filing of an application accompanied by the required fees,
if it appears that the statements made on the application are true, that the
applicant has properly identified himself and that all officers, partners
and shareholders required by this chapter to be identified have been so, the
license shall be issued. On the other hand, no license shall be issued or
renewed to any applicant who has willfully violated this chapter. If it is
determined that an applicant has been convicted of a crime involving dishonesty,
fraud, deceit or misrepresentation, no license shall issue.
Any license may be revoked for a violation of this chapter or because
of untrue or incomplete statements on the application.
Each licensee must maintain sequentially numbered records for not less
than one year, containing the following information:
A. The name and address of the person or persons from whom
any of the precious metals were purchased.
B. The date of the transaction.
C. The names of the precious metals purchased.
D. The fineness of the precious metals purchased.
E. The weights of the precious metals purchased.
F. A detailed description of the precious metals purchased.
G. The prices paid for the precious metals.
H. The signature of the person from whom the precious metals
were obtained.
I. The driver's license number of the person from whom the
precious metals were obtained.
J. The social security number of the person from whom the
precious metals were obtained.
No licensee shall purchase any of the precious metals covered by this
chapter from any person under the age of 18 years, unless such person is accompanied
by a parent or guardian and said guardian gives specific written consent to
the transaction and complies with the recordkeeping provision of this chapter.
No licensee shall destroy, melt down, dispose of, sell or deliver any
item received in a covered transaction until seven days have passed from the
date the item came into the possession of the licensee.
Any person, firm or corporation who shall violate any of the provisions
of this chapter shall, upon conviction thereof, before the Municipal Court
of the Borough, be subject to a fine not exceeding $1,000 or imprisonment
in a county jail for a term not exceeding 90 days, or both, in the discretion
of the Municipal Judge before whom such defendant shall be convicted. A separate
offense may be deemed committed on each day during or on which a violation
occurs or continues.