City of Ogdensburg, NY Precious Metals and Gems

There has been an increase in the incidents of property theft.

The market value of precious metals, gems and coins has risen dramatically.

The ease with which persons may buy and sell precious metals, gems and coins without requiring personal identification, property identification or proof of ownership of said property provides opportunities for disposal of stolen personal property, including precious metals, gems and coins.

PRECIOUS METALS EXCHANGE ESTABLISHMENT

The regulation and control for the purchase and sale of precious metals, gems and coins will serve to protect the property rights of victims of theft and other criminal activity.

(5)

The regulation and control of the purchase and sale of said property will serve to aid police investigation of theft, robbery and burglary and aid in the return of property to its rightful owners all without unduly hindering legitimate business activity.

Therefore, the public health, morals and general welfare of the City of Ogdensburg will be protected and promoted and the best interest of the people will be served by the control and regulation of the buying, selling, trading or dealing of precious metals, gems and coins.

§ 161-2 Definitions.

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

DEALER

Any person who individually or as principal, broker, agent, employee or assign of any person buys or sells from any person precious metals, gems or coins or who buys or sells from any person articles composed wholly or in part of precious metals or gems for the purpose of melting or refining said precious metals or gems.

GEMS

Includes emerald, diamond, ruby, sapphire, black opal, ruby spinel, citrine, demantoid, bloodstone, jasper, pearl, aquamarine, beryl, topaz, garnet, chrystolite, fire opal, moonstone, rose quartz, tourmaline, carelian, peridot, sardonyx, zircon, morganite, chrysoprase, kunzite, cat's eye, amethyst, chalcedony, onyx, agate, alexandrite, star sapphire, lapis lazuli, harlequine opal, turquoise, jade or any utensil, jewelry, object of art or other item of personal property containing one or more of said gems.

PERSON(S)

Includes a human being, public or private corporation, association, unincorporated association or partnership.

PRECIOUS METALS

Gold, silver, platinum or any coins, utensils, jewelry, objects of art or any other personal property containing one or more of these elements.

PRECIOUS METALS EXCHANGE

Any person who buys, sells or exchanges precious metals, gems or coins for currency, bank drafts or other negotiable instruments.

Any shop, store, residence, place of business or premises from which a precious metals exchange is conducted.

§ 161-3 License required; application.

It shall be unlawful for any person to operate a precious metal exchange or to operate as a dealer of precious metals and/or gems within the city limits of the City of Ogdensburg without having first obtained and paid for and having in full force and effect a license therefor.

Any person desiring to procure a license shall file with the City Clerk a written application upon a form furnished by the City Clerk. Said application shall contain the following information:

The name and description of the applicant.

The name and address of the person, public or private corporation, association, unincorporated association or partnership represented by the applicant.

The local and legal address of the applicant and the person, if any, represented by the applicant.

The age and date of birth of the applicant.

(5)

Whether or not the applicant has been convicted of a misdemeanor or felony and, if so, the date of the conviction, nature of the offense, penalty imposed and the name and address of the court.

(6)

An endorsement in writing by two reputable citizens of the State of New York certifying to the good reputation of the applicant or the person represented by the applicant and the ability of the applicant or the person represented by the applicant to properly conduct a precious metal exchange or deal with the buying and selling of precious metals and/or gems.

(7)

A description of the nature of the business the applicant or the person represented by the applicant intends to conduct.

(8)

The name and address of the owner of the premises on which the applicant or the person represented by the applicant intends to operate a precious metal exchange or intends to deal in the purchase and sale of precious metals and/or gems.

(9)

A description of the right of occupancy of the applicant or the person represented by the applicant to the use of said premises.

(10)

Two photographs of the applicant taken not more than 30 days prior to the filing of the application showing the head and shoulders of the applicant in a clear and distinguishing manner.

(11)

If the applicant shall be a corporation, proof of authority to do business within New York State.

An application fee of $50 shall accompany each license application.

[Amended 12-7-1992 by L.L. No. 3-1992]

§ 161-4 License issuance; eligibility.

Upon the filing of the application, fee and endorsement as provided in the preceding section, the City Clerk shall, on approval of the application by the Chief of Police of the City of Ogdensburg, issue to the applicant a license as provided in this section.

Each license shall be issued as of July 1 of each and every year and shall be valid to and including June 30 of the next succeeding year unless said license is suspended or revoked.

No license shall be granted pursuant to this chapter to any person or dealer:

Who has been convicted of a felony or misdemeanor within the 10 years preceding the date of the application.

Who has been found by any court of the State of New York to have practiced a civil fraud, deceit or misrepresentation in the conduct of a business or business transaction.

Whose license under this chapter has been previously revoked.

Whose license has been suspended pursuant to this chapter when the period of suspension has not expired at the time of the application for the license.

Notwithstanding any provision of this chapter to the contrary, the Chief of Police, in his discretion and after hearing thereon, may grant a license as provided herein to an applicant who has been convicted of a crime or who has been found by a court to have practiced a civil fraud, deceit or misrepresentation in the conduct of a business or business transaction upon a finding of the Chief of Police that said applicant or the person represented by said applicant is of good moral character and has demonstrated reliability and trustworthiness in finance and commercial transactions and would not compromise or jeopardize the public in the operation of a precious metal exchange or in the buying or selling of precious metals and/or gems.

§ 161-5 Use of license.

The licensee shall display the license obtained pursuant to this chapter in a conspicuous place within the establishment or premises maintained by the licensee for the operation of a precious metal exchange or for the buying and selling of precious metals and/or gems.

The Clerk shall issue duplicate licenses for use by the licensee in the event that the licensee maintains more than one premise for business within the City of Ogdensburg.

The licensee shall immediately notify the City Clerk of the City of Ogdensburg of any change of address.

No license issued pursuant to this chapter shall be transferred or assigned to or used by any person other than the licensee to whom it was issued, his agents, employees or duly authorized representatives.

Licenses may be renewed on July 1 of each year on payment of the required fee and the filing of a renewal application with the City Clerk of the City of Ogdensburg. Said renewal application shall certify that the information contained within the original application has not been modified or changed except as provided within the renewal application.

Whenever a license shall be lost or destroyed on the part of the holder or his agent or employee, a duplicate in lieu thereof under the original application may be issued by the City Clerk upon the filing by the licensee of an affidavit setting forth the circumstances of the loss and what, if any, search has been made for its recovery.

§ 161-6 Display of purchase method; records.

Display of purchase method.

A licensee must prominently display a sign which will notify customers that their purchases and sales are made by weight or not by weight.

If purchases or sales are made by weight, the establishment must have scales which are approved, tested and sealed by the Sealer of Weights and Measures of Saint Lawrence County. All sales must be by pennyweight. If the establishment purchases a precious metal or gem by weight, the seller must be told the weight (in pennyweight), and the price per pennyweight. In addition, if the establishment purchases precious metals or gems by weight, the establishment must post the current price paid for pennyweight, based on purity.

If a precious metal exchange establishment does not utilize a scale, it must display a sign stating that precious metals and/or gems are not purchased by weight.

All signs and notices required by this section shall be conspicuously posted and readily visible by customers. The numerals and letters contained within the required signs and notices must be at least four inches in height.

(5)

Nothing in this section shall prohibit any establishment which purchases by weight from purchasing an object for more than its value based upon its weight.

Records required.

Each licensee shall keep records, legibly written in English, within a bound volume. All entries shall be made in ink at the time of each transaction and shall be serially numbered and shall include:

(a)

An accurate account and description of the object purchased or sold, which description shall include but shall not be limited to the weight of the object (if applicable), the purity of the precious metal, any monogram, numbers, inscription or other marks of identification which may appear on such article.

(b)

The amount paid or received on the purchase or sale of the object.

(c)

The date of the transaction.

(d)

The name, legal address, date of birth, sex and description as near as possible of the person purchasing or selling the items.

(e)

The nature of identification, if any, produced by the person purchasing or selling the article.

No alteration or erasures are to be made in the record book of the licensee. Erroneous entries are to have a simple line drawn through them with the corrected entry made on the next line.

The records shall be retained in possession of the licensee in a good condition and orderly fashion for six years.

Each licensee shall issue a written receipt to any purchaser or seller. Each written receipt shall contain the serial number of the transaction and shall contain all information required to be posted in the records of the licensee. The licensee shall retain a copy of the written receipt issued to the customer, purchaser or seller.

Inspection of records. All records and books required to be kept pursuant to this section shall be, at all reasonable times, during regular business hours, open for inspection by the Chief of Police or any officer of the Ogdensburg Police Department.

Reporting requirements. Each licensee shall be required to submit reports of all transactions to the Chief of Police of the City of Ogdensburg. Said reports shall be made by the 15th day of each calendar month and shall include information relating to all transactions of the preceding month. Said reports shall be made on report forms available at the office of the City Clerk of the City of Ogdensburg or at the Police Department of the City of Ogdensburg.

§ 161-7 Unlawful acts.

No precious metals and/or gems shall be purchased or sold by any person, dealer or precious metal exchange from:

A person who appears intoxicated.

A person under the age of 18 unless on the written consent of his or her parent or legal guardian. Said written consent shall be retained with the record of the transaction.