A3873

An Act concerning recordkeeping of secondhand jewelry and precious metal transactions and amending P.L.2009, c.214 and P.L.1981, c.96.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. Section 3 of P.L.2009, c.214 (C.2C:21-38) is amended to read as follows:

3. a. The requisite knowledge or belief for a violation of N.J.S.2C:20-7 is presumed in the case of a person subject to the provisions of section 1 or 2 of P.L.2009, c.214 (C.2C:21-36 or C.2C:21-37) who purchases any article of used or secondhand jewelry and fails to comply with the requirements of section 1 or 2 of P.L.2009, c.214 (C.2C:21-36 or C.2C:21-37), as applicable.

b. Notwithstanding the provisions of N.J.S.2C:43-3, a person who violates subsection b., c., or d. of section 1 of P.L.2009, c.214 (C.2C:21-36) is a (1) petty disorderly person and shall be fined not less than $500 or more than $1,000 for a first offense, and (2) disorderly person and shall be fined not less than $1,000 or more than $2,500 for a second or subsequent offense. The penalty imposed under this subsection shall be in addition to any other fine, fee, assessment, or penalty imposed under Title 2C of the New Jersey Statutes.

(cf: P.L.2009, c.214, s.3)

2. Section 1 of P.L.1981, c.96 (C.51:6A-1) is amended to read as follows:

1. Any person in the business of buying precious metals who buys, attempts to buy, or offers to buy precious metals on the basis of bulk value from any person who is not in the business of selling precious metals shall:

a. Clearly and prominently display at the point of purchase:

(1) [His] The person’s name and address;

(2) The price being offered or paid by the buyer for precious metals expressed as price per standard measure of weight and fineness as prescribed by the Superintendent of Weights and Measures.

b. Include [his] the person’s name and address in all advertisements concerning such precious metals.

c. Weigh the precious metals in plain view of the seller on State certified scales with the certificate of inspection clearly and prominently displayed.

d. Test the fineness of precious metals, if any test is so performed, in plain view of the seller.

e. Issue to the seller and keep for [his] the buyer’s own records, for not less than one year, a serialized receipt for each purchase of precious metals containing the following:

(1) The name and address of the buyer;

(2) Date of the transaction;

(3) The names of the precious metals purchased;

(4) The finenesses of the precious metals purchased;

(5) The weights of the precious metals purchased;

(6) The prices paid for the precious metals at the standard measures of weight and fineness prescribed by the superintendent;

(7) The name, address, and signature of the seller of the precious metals.

f. Obtain proof of identity from each person who sells precious metals to him.

g. Retain any precious metals in the form in which they were purchased for a period of not less than two business days, minimum 48 hours.

h. Upon reasonable request, allow the inspection of the serialized receipts or precious metals provided for in subsections e. and g. respectively of this section by any law enforcement officer or weights and measures official.

i. Obtain a bond in an amount and form prescribed by regulations of the Office of Weights and Measures. The bond shall be obtained from a surety company authorized by law to do business in this State. The bond shall run to the State for the benefit of any person injured by the wrongful act, default, fraud, or misrepresentation of the buyer of precious metals. [No] A bond shall not comply with the requirements of this subsection unless the bond contains a provision that it shall not be cancelled for any cause unless notice of intention to cancel is filed in the Office of Weights and Measures at least 30 days before the day upon which cancellation shall take effect. This subsection shall only apply to transient buyers.

j. Maintain, for not less than one year, digital photographs of the precious metals purchased.

(cf: P.L.2013, c.247, s.1)

3. Section 3 of P.L.1981, c.96 (C.51:6A-3) is amended to read as follows:

3. Any person who violates any provision of this act shall be liable to a mandatory civil penalty of not less than $500 nor more than $1,000 for a first offense. A person who commits a second or subsequent offense is a petty disorderly person and subject to a mandatory civil penalty of not less than $1,000 or more than $2,500. The mandatory civil penalty shall be recoverable by the Superintendent of Weights and Measures pursuant to the provisions of the "Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.). An action for the recovery of a civil penalty for violation of this act shall be within the jurisdiction of and may be brought before the Superior Court or municipal court in the municipality where the offense is committed or where the defendant resides or where the defendant may be apprehended.

A summons or warrant against any foreign business entity doing business in this State shall be processed as provided by law.

(cf: P.L.2013, c.126, s.1)

4. This act shall take effect on the first day of the fourth month following the date of enactment, but the Attorney General may take such anticipatory action in advance of that date as may be necessary for the implementation of this act.

STATEMENT

This bill increases the penalties imposed on secondhand jewelry and precious metal buyers who violate certain recordkeeping laws.

Under current law, jewelry retailers, wholesalers, and smelters are required to verify the identity of anyone selling them jewelry using a driver’s license or other government-issued form of photograph identification. They also are required to maintain for five years detailed records of all secondhand jewelry they purchase. The law requires that a copy of these records be delivered to the local police department each week, and the jewelry may not be sold until 10 business days after the records are delivered. The law also requires that any person who purchases used jewelry with the intent of selling it is to provide an itemized, descriptive list of the jewelry to the retailer, wholesaler, or smelter to whom it is sold, and maintain the record of the sale for five years. A violation of these record-keeping provisions is presumed to be requisite knowledge or belief of a violation of N.J.S.2C:20-7, which prohibits the receipt of stolen property. As such, violations are punishable by the penalties established in N.J.S.2C:20-2 for theft, which range from a disorderly persons offense to a crime of the second degree, depending on the value of the stolen goods.

Currently, there is no specific penalty for violating these administrative provisions when knowledge of the receipt of stolen property under N.J.S.2C:20-7 is not established. This bill sets forth penalties for these violations similar to those established for precious metal recordkeeping violations. For a first offense, a violator would be a petty disorderly person, subject to a term of imprisonment of up to 30 days, an enhanced fine of between $500 and $1,000, or both. For a second or subsequent offense, a person would be a disorderly person, subject to a term of imprisonment of up to six months, an enhanced fine of between $1,000 and $2,500, or both. These penalties are in addition to any other fines or penalties that may be imposed under the State’s criminal code.

The bill also enhances certain penalties applicable to precious metal buyers. Under current law, persons engaged in buying precious metals also are required to comply with recordkeeping and other requirements. A mandatory civil penalty of between $500 and $1,000 is imposed on a person who violates these requirements. Under the bill, this penalty would continue to be imposed on first-time offenders, but a second or subsequent violation would constitute a petty disorderly persons offense, punishable by a fine of up to $500, imprisonment for up to 30 days, or both. Second and subsequent violations also would be punishable by an additional mandatory civil penalty of not less than $1,000 or more than $2,500.