2023 -- H 5841

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LC002066

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2023

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A N   A C T

RELATING TO COMMERCIAL LAW -- GENERAL REGULATORY PROVISIONS --

PURCHASE AND SALE OF PRECIOUS METALS

     

     Introduced By: Representatives Solomon, DeSimone, Cardillo, Casey, Noret, Vella-
Wilkinson, Kennedy, and Azzinaro

     Date Introduced: March 01, 2023

     Referred To: House Corporations

     It is enacted by the General Assembly as follows:

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     SECTION 1. Sections 6-11.1-4 and 6-11.1-7 of the General Laws in Chapter 6-11.1 entitled

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"Purchase and Sale of Precious Metals" are hereby amended to read as follows:

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     6-11.1-4. Record of transactions required — Reports to police.

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     (a) Except as provided in subsection (e) of this section, every person licensed under this

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chapter shall keep a copy of the report form obtained from or under the direction of the attorney

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general, containing a comprehensive record of all transactions concerning precious metals

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including catalytic converters. The comprehensive record shall be hand printed legibly or typed.

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The record shall include the date and hour of the transaction; the name, address, telephone number

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and date of birth of the seller, as well as a photocopy or digital image of a seller’s photo

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identification; the seller’s signature; and a complete and accurate description of the property

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purchased or sold including any serial numbers or other identifying marks or symbols.

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     (b) For any transacted catalytic converter, the record shall include either the vehicle

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registration or the vehicle identification number, and bill of sale for the vehicle from which it was

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removed and the license plate number, state of issue, make, and model of the vehicle used to deliver

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the property to the licensee. The payment of the transaction shall be made only by check.

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     (c) All persons licensed under this chapter shall deliver or mail weekly to the chief of police

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of the city or town in which the business is located and electronically submit to the attorney general,

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in a manner specified by the attorney general, all report forms from the preceding seven-day (7)

 

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period.

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     (d) Every person licensed under this chapter shall retain a copy of the report form for a

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period of one year three (3) years from the date of the sale stated on the form. These records are to

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be made available for inspection by any law enforcement agency requesting to review them.

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Licensees or secondary metals recyclers are prohibited from releasing a supplier’s information

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without their consent, unless the disclosure is made in response to a request from a law enforcement

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agency.

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     (e) The requirements set forth in subsection (b) of this section shall not apply to business-

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to-business transactions. For purposes of this section, “business-to-business transactions” means a

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purchase of precious metals from a person or entity that is in the business of generating precious

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metals from its normal operation or is duly engaged in the business of purchasing, selling, bartering,

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or dealing in automotive salvage, precious metals, or secondhand articles.

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     (f) Any violation of these provisions shall be subject to the penalties set forth in § 6-11.1-

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7.

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     6-11.1-7. Penalties.

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     (a) Every person who shall violate the provisions of this chapter shall be guilty of a

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misdemeanor and shall be fined not more than five hundred dollars ($500) or imprisoned for not

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more than one year, or both.

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     (b) If the value of the property involved in a transaction that is in violation of this chapter

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exceeds five hundred dollars ($500), a A person convicted of a violation shall be fined not more

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than two thousand dollars ($2,000) or imprisoned for not more than three (3) years or both.

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     (c) The attorney general shall have the authority to suspend the license of any person

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required to be licensed under this chapter as a result of violations of this chapter or attorney general

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regulations leading to penalties under this chapter.

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO COMMERCIAL LAW -- GENERAL REGULATORY PROVISIONS --

PURCHASE AND SALE OF PRECIOUS METALS

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     This act would mandate that a bill of sale for the vehicle be attached for any transacted

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catalytic converter. Additionally, this act would change the requirement for every person licensed

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under this chapter to retain a copy of the report form for a period of one year to three (3) years from

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the date of the sale stated on the form. Also, a conviction under § 6-11.1-7 would be a felony subject

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to fine and imprisonment.

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     This act would take effect upon passage.

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