Town of Elsmere, DE Precious Metals and Gems

AUTHORIZED LAW ENFORCEMENT AGENT: Any member of the Elsmere Public Safety Department, Delaware State Police, New Castle County Police Department, the Attorney General and Deputy Attorney General.

MINOR: Any person who has not attained the age of 18 years.

PERSON: Any individual, firm, partnership or corporation.

PRECIOUS GEM: Prized stone such as diamond, ruby, emerald, sapphire, pearl or the like.

PRECIOUS METAL: Any metal in the gold, silver or platinum group or any combination or mixture thereof.

SECONDHAND DEALER OF PRECIOUS METALS OR GEMS: Any person, firm or corporation who purchases, trades, handles, sells, deals in or disposes of any secondhand or used watches, jewelry, cutlery, hummele figurines and other products, gold, silver or other precious metals, wrought gold or other wrought precious metals or any secondhand or used article whatsoever composed or manufactured in whole or in part of gold, silver or other precious metals or precious gems such as diamonds, rubies, emeralds, sapphires, pearls and the like. This definition shall not include any bank which is: regulated by the United States or the State of Delaware; and dealing in refinery ingots, minted bars, silver or bullion coins, with or on behalf of its account customers.

§ 167-2 License required.

No person shall conduct business as a secondhand dealer of precious metals or gems within the Town of Elsmere unless he has first obtained a business license to engage in that business from the Town Manager. This license is required in addition to any license already issued to that person for any other business.

A separate license shall be required for each location, place or premises used for conducting of business as a secondhand dealer of precious metals or gems.

Every application for license for the operation of a secondhand dealership of precious metals or gems shall state the full name(s) of the applicant, including nicknames or aliases, residential address(es), place(s) of employment, including address(es) and phone number(s), social security number, date of birth, driver's license number, a photograph of the applicant taken within 30 days of the application and the address of the premises for which the application for license is made. Each application shall further provide the full name(s), including nicknames and aliases, residential address(es), place(s) of employment, including address(es) and phone number(s), social security number and a photograph, taken within 30 days of the application of the person(s) to be employed by the establishment as either a full- or part-time employee. In the case of a new employee, the information stated above shall be provided to the Town Manager within 30 days of the commencement of employment. This shall be provided by the license holder, who shall personally appear before the Town Manager and affix his signature and social security number to the form containing that information in the Town Manager's presence and shall acknowledge under oath that said information is true.

No license shall be issued except upon personal appearance of the applicant before the Town Manager. The applicant shall affix his signature and social security number to the application for the license in the Town Manager's presence and shall acknowledge under oath that said application for license is his act and deed and that the facts stated therein are true.

Where the applicant is a corporation, Subsection D of this section shall be satisfied by the appearance, signature and social security number of a director on behalf of the corporation in the same manner. Where the applicant is a partnership or other unincorporated association, Subsection D of this section shall be satisfied by the appearance, signature and social security number of a general partner or member on behalf of the applicant.

The license fee for a secondhand dealer of precious metals or gems shall be $100 per year for each place of business.

[Amended 1-14-1982 by Ord. No. 168; 9-18-2003 by Ord. No. 420]

§ 167-3 Place of business; soliciting on streets; canvassing.

Any license issued under the provisions of this chapter shall designate the place in which the secondhand dealer shall carry on such business; and such business shall not be carried on or conducted in any other place than that designated in or by such license.

No secondhand dealer of precious metals or gems shall be permitted to solicit business upon any street or public highway of the Town.

No person, firm or corporation shall conduct a house-to-house canvass for the purchase or sale of secondhand or used watches, jewelry, cutlery, hummele figurines and other products, gold, silver or other precious metals, wrought gold or other wrought precious metals or any other secondhand or used article whatsoever composed or manufactured in whole or in part of gold, silver or other precious metals or precious gems, within the Town.

§ 167-4 Record of purchases, sales and exchanges.

Every secondhand dealer of precious metals or gems shall keep a tightly bound book, not loose-leaf, with pages numbered in sequence in which there shall be made, at the time of transaction, a record in English of every article received, purchased, sold or exchanged by him, setting forth the following: The name, age, sex, residence and general description of the individual with whom the transaction is made, the price or consideration paid or received at the time of the transaction; and a description of every article received, sold or exchanged, giving the manufacturer's name or other marks of identification appearing on same. The secondhand precious metal or gem dealer shall require that the person with whom he is dealing produce two items of identification, at least one of which must bear the photograph, name, address and date of birth of such person.

The secondhand dealer of precious metals or gems shall be required to have the person with whom he is dealing sign the book entry which describes the transaction as set forth in Subsection A of this section.

§ 167-5 Record inspection.

The required record book, and all goods, articles or things purchased, received or kept for sale or exchange, by every secondhand dealer of precious metals or gems, shall at all reasonable times be open to the inspection of an authorized law enforcement officer.

Any secondhand dealer of precious metals or gems, not at a permanent place of business, shall at the conclusion of the last day of business at a temporary place of business turn over to the Town Manager the book containing the recordation of all purchases, sales, and exchanges required by § 167-4 of this chapter. Such book shall be available for inspection by any authorized law enforcement officer.

Any secondhand dealer of precious metals or gems with a permanent place of business within the Town of Elsmere shall keep the book required by § 167-4 of this chapter at least one year from the date of the last transaction recorded in said book and make said book available for inspection by any authorized law enforcement officer.

In addition to the requirements set forth in § 167-5A, B and C, any secondhand dealer of precious metals or gems shall submit a copy of every completed transaction contained in the record book, properly documented and maintained as required by § 167-4A and B, to the Elsmere Public Safety Department on a weekly basis.

[Added 4-12-1984 by Ord. No. 191]

§ 167-6 Goods to be retained without concealment.

Every secondhand dealer of precious metals or gems must retain without concealment on the business premises for a period of 10 days, subject to inspection by any authorized law enforcement officer, all goods, wares, merchandise and other items purchased or received from any person before selling, shipping, melting, compressing or otherwise altering or disposing of the same.

§ 167-7 Duty of inquiry; seizure of stolen goods.

Every person conducting business as a secondhand precious metal or gem dealer who buys or receives any property which has been acquired under circumstances amounting to theft, as provided in Title 11 Del. C. § 841, under such circumstances as should cause such person to make reasonable inquiry to ascertain that the person from whom such property was bought or received had the legal right to sell or deliver it, without making such reasonable inquiry, shall be presumed to have bought or received such property knowing it to have been so stolen or obtained. This presumption may be rebutted by proof; however, the burden of proof on this issue shall be upon the defendant.

Every person conducting business as a secondhand precious metal or gem dealer who by such reasonable inquiry has reason to believe that such goods offered are stolen shall seize or take into possession such goods and shall immediately notify the police of such seizure, together with the description of the person offering such goods for sale or trade.

§ 167-8 Purchasing or accepting goods from intoxicated persons or minors.

No person conducting business as a secondhand precious metal or gem dealer or acting for any person so engaged shall knowingly purchase or trade any property from any person who is apparently under the influence of any intoxicating liquor or drug.

A secondhand precious metal or gem dealer shall purchase or deal in items only from persons who are 18 years of age or older. It is the responsibility of the dealer to ascertain the true and correct age of the seller.

§ 167-9 Violations and penalties; suspension of license; jurisdiction.

Any secondhand dealer who violates any part of this chapter will receive, upon conviction thereof, for the first offense, a fine not to exceed $500 and/or imprisonment for not more than 30 days; for each subsequent offense, a fine not to exceed $1,000 and/or imprisonment for not more than 60 days. For every conviction, the secondhand dealer in precious metals or gems shall have his Town business license as required by this chapter suspended for one year. He shall not apply for another such license during the period of suspension.

Jurisdiction for any and all offenses will be the Justice of the Peace Court of the State of Delaware.

The Elsmere Public Safety Department will have jurisdiction as to the enforcement of this chapter in the Town of Elsmere and to see that each secondhand dealer's license in the Town complies with this chapter.