[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:
An insurance agreement pledging security for payment of any
bank draft or other negotiable instrument.
Any calendar day except Sunday or any County holiday.
Metal money exchanged for purchase or sale for more than
its melt-down value, unless deemed to be an investment in numismatics.
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]
Gold, silver or platinum or coins, utensils or objects containing
one or more of these metals.
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]
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.
[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; 5-12-2009 by L.L. No.
18-2009; 4-28-2015 by L.L. No. 17-2015; 6-6-2023 by L.L. No. 24-2023]
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 correlating 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.
(2)
The amount paid for the article.
(3)
The date and location 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.
(a)
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.
(b)
In the event the seller utilizes a current and valid government-issued
passport as identification, the seller shall then also be required
to provide documentation of the seller's current address. Such
documentation shall be in the form of at least two utility bills in
the seller's name and reflect the seller's current address
or any other such documentation as may be required by the Department.
(c)
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.
(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.
C.
The records shall be retained in the possession of the licensee,
in good condition and in an orderly fashion, at the business location,
for at least seven years from the time the record is made.
D.
Any change in location of the article from the time the transaction
occurs until the article is disposed of by sale or other means shall
be recorded and kept as a record pursuant to this section.
E.
Each licensee shall take digital photographs of the following:
(1)
The
precious 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), and the photograph identification produced by the person
selling the precious metals and/or gems.
F.
No alterations or erasures are to be made to required entries. An
erroneous entry shall have a simple line drawn through it and the
corrected entry made on the next line.
[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; 6-6-2023 by L.L. No. 24-2023]
A.
Online, electronic records, reported daily, pursuant to § 563-41, may be reviewed at any time by the Office of Consumer Affairs and the Police Department.
B.
The Office of Consumer Affairs and/or the Police Department shall no more often than every three months conduct regular and routine inspections of the physical records of the licensee to ensure compliance with the recordkeeping and reporting requirements set forth in the Suffolk County Code, Chapter 563, and the New York State General Business Law.
C.
Such regular and routine inspections shall be made upon three business
days' notice to the licensee and shall occur at reasonable times
during business hours.
D.
In conducting these inspections, an inspector from the Office of
Consumer Affairs or member of the Police Department shall:
(1)
Request to see the last 20 articles purchased or received in pledge
by the precious metal and gem exchange establishment that are still
in inventory, which articles must be produced by the precious metal
and gem exchange establishment.
(2)
Compare the articles to the description of such articles listed in
the precious metal and gem exchange establishment's transaction
records and/or the electronic records.
(3)
Review the entry for each of these 20 items in the precious metal
and gem exchange establishment's record book for completeness,
accuracy and legibility.
E.
In the event documented probable cause exists that a licensee has failed to properly record any information required by Chapter 563 regarding an item purchased or acquired by the licensee, the Office of Consumer Affairs and/or the Police Department may, without giving prior written notice, conduct a physical inspection of the licensee's records at the licensee's place of business. In such cases, the records inspection shall be limited to an inspection of the record relating to the particular item of property for which the information contained in the designated reporting program was either incorrect or incomplete.
F.
Nothing herein shall be construed so as to restrict, inhibit, exclude
or otherwise invalidate any court-issued warrant or other judicial
decision or order.
[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; 5-12-2009 by L.L. No.
18-2009; 6-6-2023 by L.L. No. 24-2023]
Every person so licensed as a precious metal and gem exchange establishment shall electronically file required reports of the information described in § 563-41 using a reporting program designated in writing by the Police Department. Each licensee shall be required to create an account with a reporting program as designated by the County within 15 days of the County's mailing of notification 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.
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]
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.
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]
[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. Where there is reasonable suspicion that, at
a minimum, property in the possession of a licensee is stolen property
or constitutes evidence of a crime, the investigating law enforcement
or consumer affairs official may notify a licensee not to sell an
item and 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.
[Amended 6-6-2023 by L.L. No. 24-2023]
B.
Order to hold. If additional time is needed to secure the voluntary
surrender of the item or for investigative purposes, or to afford
the investigating official sufficient time to secure a search warrant
authorizing the seizure of the item in those instances where the licensee
declines to voluntarily surrender the item, and documented probable
cause exists that the item is stolen or constitutes evidence of a
crime, the Commissioner of Police, a Police Chief, or the Director
of Consumer Affairs may notify a licensee not to sell an item and
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 or when probable cause no longer exists, whichever occurs
first.
[Amended 6-6-2023 by L.L. No. 24-2023]
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.
