Suffolk County, NY
 
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Table of Contents
Table of Contents
[Added 4-8-1980 by L.L. No. 13-1980]
[Amended 2-9-1982 by L.L. No. 5-1982; 6-10-2003 by L.L. No. 21-2003]
As used in this article, the following terms shall have the meanings indicated:
BOND
An insurance agreement pledging security for payment of any bank draft or other negotiable instrument.
BUSINESS DAY
Any calendar day except Sunday or any County holiday.
COIN
Metal money exchanged for purchase or sale for more than its melt-down value, unless deemed to be an investment in numismatics.
GEM
Articles composed wholly or in part of the following: emerald, diamond, ruby, sapphire, black opal, ruby spinal, citrine, demantoid, bloodstone, jasper, pearl, aquamarine, beryl, topaz, garnet, chrysolite, fire opal, moonstone, rose quartz, tourmaline, carnelian, peridot, sardonyx, zircon, morganite, chrysoprase, kunzite, cat's eye, amethyst, chalcedony, onyx, agate, alexandrite, star sapphire, lapis lazuli, harlequin opal, turquoise, jade, or any other item composed wholly or in part of any gem or stone whose value is in excess of $100.
[Added 5-12-2009 by L.L. No. 18-2009]
PRECIOUS METAL
Gold, silver or platinum or coins, utensils or objects containing one or more of these metals.
PRECIOUS METAL AND GEM EXCHANGE
Persons engaged in the business of a collateral loan broker, as defined in Article 5 of the New York General Business Law, or in the business of sale, purchase, or exchange of precious metals and/or gems for other objects of precious metals or gems, for United States currency, bank drafts or other negotiable instruments as defined in the Uniform Commercial Code.
[Amended 5-12-2009 by L.L. No. 18-2009; 12-6-2011 by L.L. No. 2-2012]
PRECIOUS METAL AND GEM EXCHANGE ESTABLISHMENT
Any shop, store, residence, place or premises from which a precious metal and gem exchange business is conducted.
[Amended 5-12-2009 by L.L. No. 18-2009]
A. 
It is unlawful for any person to engage in any business as a precious metal and gem exchange establishment without first obtaining a license therefor from the office in accordance with and subject to the provisions of this article and Article I.
[Amended 6-21-1994 by L.L. No. 13-1994; 6-10-2003 by L.L. No. 21-2003; 5-12-2009 by L.L. No. 18-2009]
B. 
Every licensee shall maintain an establishment within the County of Suffolk.
[Amended 7-30-2013 by L.L. No. 34-2013]
C. 
A licensee shall display the license obtained pursuant to this article in the establishment. If a licensee shall maintain more than one establishment within the County of Suffolk, he shall obtain duplicate licenses. The fees for duplicate licenses are set forth in § 563-38B.
D. 
A precious metal and gem exchange establishment may either utilize scales for the purposes of buying precious metals and/or gems or may operate without a scale. Whichever method of operation is utilized must comply with the provisions of § 563-39 herein. In addition, every licensee shall comply with the bonding provisions of § 563-40 and the record and reporting requirements of § 563-41.
[Amended 5-12-2009 by L.L. No. 18-2009]
E. 
No applicant for a license or license renewal shall have any outstanding judgment for child support against him or her, or be in arrears in child-support payments as determined by official court records or official government records, at the time an application is filed for such license or license renewal. If an applicant has such a judgment against him or her, or is in such arrears, but is current in payments on a judicially approved, or Child Support Enforcement Bureau sanctioned, payment schedule to pay off or reduce such judgment or arrears, then such individual shall not be deemed ineligible for a license or license renewal on the grounds of such judgment or arrears. At least 30 days prior to the expiration of a license, the Office shall send a written notice to a licensee informing said licensee of his or her obligation to comply with the provisions of this section pertaining to compliance with child-support obligations. If necessary, a second written notice shall be sent by the Office to a licensee 60 days after the license has lapsed informing said licensee of his or her obligation to comply with the provisions of this section pertaining to compliance with the child-support obligations. In addition, the County Department of Social Services, through its Child Support Enforcement Bureau, shall notify all current noncustodial parents of the obligations contained herein.
[Added 6-21-1994 by L.L. No. 13-1994; amended 6-6-2000 by L.L. No. 11-2000]
[Added 7-30-2013 by L.L. No. 34-2013[1]]
A. 
The Department, in its discretion, may refuse to issue a license to an applicant whose proposed business location was previously operated as a precious metal and gem exchange and the previous establishment’s license to operate as same was revoked by the Department within the preceding two years.
B. 
In determining whether to issue a license during the aforementioned two-year period, the Department shall determine whether the proposed licensee is a business entity separate and distinct from the precious metal and gem exchange that had its license revoked, or has acquired the predecessor exchange business through an arm’s length transaction. If a transaction is found not to be an arm’s length transaction, the Department shall not issue such license.
C. 
For the purposes of this section, "arm’s length transaction" shall mean a sale or transfer of all interests in a precious metal and gem exchange business in the open market between an informed and willing buyer and seller, where neither is under any compulsion to participate in the transaction and is unaffected by any unusual conditions which indicate a reasonable possibility that the sale or transfer is being made for the purpose of permitting the original licensee to avoid the effect of the revocation of license. The following sales shall be presumed not to be arm’s length transactions unless adequate documentation is provided demonstrating that the sale, management agreement or other agreement giving the applicant control of the precious metal and gem exchange business was not conducted, in whole or in part, for the purpose of permitting the original licensee to avoid the effect of the revocation of license:
(1) 
A sale between relatives;
(2) 
A sale between related companies or partners in business; or
(3) 
A sale or other agreement giving the applicant control of the precious metal and gem exchange business, affected by other facts or circumstances that would indicate that the transaction is entered into for the primary purpose of permitting the former operator to avoid the effect of the revocation.
[1]
Editor’s Note: This local law was adopted as § 563-38, but was redesignated in order to maintain the organization of this Ch. 563.
[Amended 11-25-1980 by L.L. No. 28-1980; 6-6-1989 by L.L. No. 19-1989; 11-25-1997 by L.L. No. 29-1997; 11-30-2001 by L.L. No. 23-2001; 12-17-2002 by L.L. No. 4-2003]
A. 
An application fee of $200 shall accompany each application for a precious metal and gem exchange license. The fee for a precious metal and gem exchange license shall be $200 per annum. It may be renewed biennially for a fee of $400.
[Amended 8-5-2008 by L.L. No. 32-2008; 5-12-2009 by L.L. No. 18-2009]
B. 
The fee for a duplicate license for an additional establishment shall be $50 per annum. It may be renewed biennially for a fee of $100.
[Amended 11-25-1980 by L.L. No. 28-1980; 2-9-1982 by L.L. No. 5-1982; 12-17-2002 by L.L. No. 4-2003; 6-10-2003 by L.L. No. 21-2003; 5-12-2009 by L.L. No. 18-2009]
A. 
An establishment may either purchase precious metals or gems by weight or may purchase precious metals or gems without weight, depending upon the individual object. A licensee must prominently display a sign which will notify customers of which method of purchase is utilized.
B. 
Purchase by weight. In order to advertise that a precious metal and gem exchange establishment purchases precious metals or gems by weight, the establishment must have scales which are approved, tested and sealed by the Office of Consumer Affairs of Suffolk County. All sales must be by pennyweight, and if the establishment purchases a precious metal or gem by weight, the seller must be told the weight (in pennyweights) and the price per pennyweight. In addition, if an establishment is buying precious metals or gems by weight, the establishment must post the current price paid, per pennyweight, based on purity; and such signs shall be clear, conspicuous and located in close proximity to, and where they are readily visible from, the scale used for such sales.
C. 
Purchase not by weight. If a precious metal and gem exchange establishment does not utilize a scale, it must display a sign stating that precious metals or gems are not purchased by weight.
D. 
Nothing in this section, however, shall prohibit an establishment which purchases by weight from purchasing an object for more than its value based upon its weight.
[Amended 11-25-1980 by L.L. No. 28-1980; 12-17-2002 by L.L. No. 4-2003; 6-10-2003 by L.L. No. 21-2003; 5-12-2009 by L.L. No. 18-2009; 9-15-2011 by L.L. No. 49-2011]
Every applicant for a precious metal and gem exchange license shall submit a five-thousand-dollar bond or, for renewal of a license, evidence of a bond issued in favor of the licensee. This bond shall be for the purpose of guaranteeing payments up to the face amount of the bond for bank drafts or other negotiable instruments issued by the licensee in exchange for the purchase of precious metals and gems. All bonds must be conditioned so that the licensee will observe all laws in relation to precious metal and gem dealers and will conduct business in conformity thereto. Such bond shall remain in force during the entire period for which the license is valid. The Director may establish rules and regulations concerning the amount of a bond to be posted upon proper notice to the licensee.
[Amended 11-25-1980 by L.L. No. 28-1980; 2-9-1982 by L.L. No. 5-1982; 6-10-2003 by L.L. No. 21-2003]
A. 
Each licensee shall keep records, legibly written in English, in a bound book. All entries shall be made in ink at the time of each transaction and shall include the computer transaction number. Each transaction shall also include:
(1) 
An accurate account and description of the object, including but not limited to the weight (if applicable) and purity of the precious metal or gem, any inscriptions, and any identifying characteristics or marks.
[Amended 5-12-2009 by L.L. No. 18-2009]
(2) 
The amount paid for the article.
(3) 
The date of the transaction.
(4) 
The name, home residence, date of birth, sex, color and description, as near as possible, of the clothing and person selling the items.
(5) 
The type of identification produced by the person selling the article.
(6) 
Records of written consent required under § 563-44A(2) of this chapter shall be retained with the record book.
(7) 
The signature of the person identified in the transaction.
B. 
No alterations or erasures are to be made to records, and erroneous entries are to have a simple line drawn through them and the corrected entry made on the next line.
C. 
The records shall be retained in the possession of the licensee, in good condition and in an orderly fashion, for at least seven years from the time the record is made.
[Amended 4-28-2015 by L.L. No. 17-2015]
D. 
Written receipt issued to the seller with the serial number of the transaction and the information required in Subsections A, B and C shall be retained.
E. 
Each licensee shall take digital photographs of the following:
[Added 4-28-2015 by L.L. No. 17-2015]
(1) 
The previous metals and/or gems purchased, each item to be separately photographed; and
(2) 
The head and face of the person selling the precious metals and/or gems (with any and all obstructions, i.e., hat, hood, sunglasses, etc., removed), or the photograph identification produced by the person selling the precious metals and/or gems.
[Amended 2-9-1982 by L.L. No. 5-1982; 12-17-2002 by L.L. No. 4-2003; 6-10-2003 by L.L. No. 21-2003]
All records required to be kept pursuant to this article shall, at all reasonable times, during regular business hours, be open for inspection by the Director of Consumer Affairs, the Police Commissioner, a Chief of Police or any officer or employee duly authorized by them.
[Amended 2-9-1982 by L.L. No. 5-1982; 12-17-2002 by L.L. No. 4-2003; 6-10-2003 by L.L. No. 21-2003]
A. 
Every person so licensed as a precious metal and gem exchange establishment shall report to the Police Commissioner or Chief of Police, on forms supplied by the Department, on or before the end of each business day in a form approved and supplied by the Commissioner of Police, the information described in § 563-41.
[Amended 5-12-2009 by L.L. No. 18-2009]
B. 
On or after March 1, 2004, any required report shall be filed electronically.
[Amended 11-25-1980 by L.L. No. 28-1980; 2-9-1982 by L.L. No. 5-1982; 6-10-2003 by L.L. No. 21-2003]
A. 
No object containing precious metal or gems shall be purchased by a precious metal and gem exchange establishment from a:
[Amended 5-12-2009 by L.L. No. 18-2009]
(1) 
Person who appears to be intoxicated or of unsound mind.
(2) 
Person under the age of 21 without the written consent of his parents or guardian. If a seller under the age of 21 is not accompanied at the time of sale by a parent or guardian, written consent must be provided by notarized statement.
[Amended 9-16-2010 by L.L. No. 50-2010]
(3) 
Person who is unable to produce proper identification.
(4) 
Person presenting merchandise that possesses an altered or obliterated serial number or any item that has had its serial number removed.
B. 
For the purposes of this section, proper identification shall be government-issued identification documents that depict the person's name, address, and photograph or a current and valid government-issued passport. Social security cards, draft registration cards, voter registration cards and other similar documents shall not be considered sufficient identification for the purposes of this section. In the event seller utilizes a current and valid government-issued passport as identification, seller shall also be required to provide documentation of seller's current address. Such documentation shall be in the form of at least two utility bills in the seller's name and reflecting the seller's current address or any other such documentation as may be required by the Department.
[Amended 4-28-2015 by L.L. No. 17-2015; 4-12-2016 by L.L. No. 14-2016]
C. 
A precious metal and gem exchange establishment failing to comply with the requirements set forth in this article and Article I shall be subject to penalties set forth in § 563-9, which pertains to fines, suspensions and revocation of licenses.
[Amended 5-12-2009 by L.L. No. 18-2009]
D. 
Purchases or sales may be made by a precious metal and gem exchange establishment at locations other than the premises of such establishment; but when purchases or sales are made at locations other than the premises of such an establishment, the licensee must note, adjacent to other entries applicable to the transaction in the record book, the location where the transaction took place in addition to the records required by § 563-41 of this chapter.
[Amended 5-12-2009 by L.L. No. 18-2009]
[Amended 6-6-1989 by L.L. No. 19-1989; 11-30-2001 by L.L. No. 23-2001; 12-17-2002 by L.L. No. 4-2003]
A. 
The Office shall issue a temporary license to any applicant for a precious metal and gem exchange license if the Office has not, within 60 days after receipt of the application for such license, approved or disapproved such application.
[Amended 5-12-2009 by L.L. No. 18-2009]
B. 
The temporary license shall be for a period of 90 days. If within such ninety-day period the Office shall have failed to approve or disapprove the application, the Office shall then issue a regular license to the applicant. If the application is approved during the term of the temporary license, the Office shall issue a regular license to the applicant.
C. 
The fee for a temporary license shall be $50. The fee for a regular license issued to replace a temporary license shall be $150.
D. 
A regular license issued pursuant to the provisions of Subsection B shall expire on the last day of the 24th month following the issuance of the temporary license.
A. 
No license shall be required of:
(1) 
Any bank, savings and loan or other financial institution that is doing business under state or federal banking laws.
(2) 
Jewelry stores which engage wholly in the business of selling jewelry for its artistic or aesthetic content, independent of its intrinsic precious metal value.
[Added 2-9-1982 by L.L. No. 5-1982]
B. 
The following transactions shall be exempt from the provisions of this article:
[Added 2-9-1982 by L.L. No. 5-1982]
(1) 
The purchase, sale or exchange of coins made in whole or in part from precious metals for their numismatic value, independent of their intrinsic precious metal value.
[Added 11-25-1980 by L.L. No. 28-1980; amended 2-9-1982 by L.L. No. 5-1982; 12-17-2002 by L.L. No. 4-2003; 6-10-2003 by L.L. No. 21-2003]
A. 
It shall be a violation of this article for any precious metal and gem exchange establishment to sell, dispose of or alter any precious metal or gem purchased until the expiration of 21 days after the acquisition of such articles by the precious metal and gem exchange establishment. This section shall not apply to articles a precious metal and gem exchange establishment has purchased from another precious metal and gem exchange establishment if such articles have been held the required 21 days by the latter.
[Amended 5-12-2009 by L.L. No. 18-2009]
B. 
All articles subject to this holding period shall be available for inspection by the Director of the Office of Consumer Affairs, the Police Commissioner, the Chief of Police or any officer duly authorized by them.
C. 
Purchases or sales between licensed precious metal and gem exchange establishments shall be exempt from the provisions of this section only if evidence of full compliance with all provisions and conditions set forth in this article is obtained by the purchasing precious metal and gem exchange establishment from the selling precious metal and gem exchange establishment in the form of a receipt. This receipt shall be retained by the purchasing precious metal and gem exchange establishment for the period required by § 563-41C hereof.
[Amended 5-12-2009 by L.L. No. 18-2009]
[Added 6-10-2003 by L.L. No. 21-2003]
A. 
Investigative hold. Whenever a law enforcement or Consumer Affairs official notifies a licensee not to sell an item, the item shall not be sold or removed from the premises. The investigative hold shall be confirmed in writing by the originating agency within 72 hours and shall remain in effect for 15 days from the date of initial notification or until the investigative order is cancelled, or until an order to hold is issued, whichever comes first.
B. 
Order to hold. Whenever the Commissioner of Police, a Police Chief, or the Director of Consumer Affairs notifies a licensee not to sell an item, the item shall not be sold or removed from the licensed premises until authorized to be released by the aforementioned individuals or their designees. The order to hold shall expire 90 days from the date it is placed.
C. 
When an item is placed on hold, the person doing so shall provide identification and provide the licensee with the name and phone number of the holding agency and the case number related to the hold order.
D. 
When an order to hold is no longer necessary, the licensee will be notified in writing by the requesting agency.