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:
DEALERS IN PRECIOUS METALS OR GEMS
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.
GEM
One or more precious or semiprecious stones, either uncut
or cut and polished for an ornament, or any object containing such
a stone.
NUMISMATIC ITEM
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.
PERSON
One or more persons of either sex, a firm, a partnership,
a corporation, or any individual representative or agent thereof.
POLICE
The Orange County Sheriff and the Town Police.
PRECIOUS METAL
Gold, silver or platinum, iridium, ruthenium, osmium or any
one or more of said metals or any object made in whole or part therefrom.
RETAIL SALE
Sale of an object containing precious metals or gems directly
to the consumer on the premises where manufactured.
SELLER
Any person who sells an object or objects containing precious
metals or gems to a dealer or transient dealer in precious metals
or gems.
TRANSIENT DEALER
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.
WHOLESALE MANUFACTURER
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.
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.
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.
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.