Chapter 349
2008 -- S 2857
Enacted 07/08/08
A N A C T
RELATING
TO COMMERCIAL LAW-GENERAL REGULATORY PROVISIONS --
PURCHASE
AND SALE OF PRECIOUS METALS
Introduced
By: Senators Doyle, McBurney, Tassoni, Connors, and Maselli
Date
Introduced: March 13, 2008
It is enacted by the General Assembly as
follows:
SECTION 1.
Sections 6-11.1-1, 6-11.1-4 and 6-11.1-5 of the General Laws in Chapter 6-
11.1 entitled "Purchase and Sale of
Precious Metals" are hereby amended to read as follows:
6-11.1-1.
License required -- "Person" defined. -- (a) No person,
including a
pawnbroker, consignment shop, or salvage yard
operator or second hand dealer, as defined in
section 5-21-1, shall engage in the business of
buying or receiving for the purpose of selling gold,
silver, platinum group metals, or precious
stones, or any articles containing those items, including
catalytic converters other than coins
purchased for their numismatic value rather than their metal
content, referred to in this chapter as
"precious metals," from the general public for the purpose of
reselling the precious metals in any condition
without first obtaining a license from the attorney
general of the state of Rhode Island, also
called "the attorney general" in this chapter. The
attorney general shall not issue any license to
a person who has not registered a permanent place
of business within the state for the purchase or
sale of precious metals. The criteria for
determining a person's permanent place of
business shall be formulated by the attorney general
immediately on or after July 1, 1981.
(b) The word
"person," when used in this chapter, shall include individuals,
partnerships,
associations, and corporations.
(c) This chapter
shall not apply to any financial institution which is covered by federal or
state deposit insurance, nor to jewelry and
silverware manufacturers purchasing precious metals
directly from trade suppliers.
(d) The word
“catalytic converter” when used in this chapter shall be defined as an air
pollution abatement device that removes
pollutants from motor vehicle exhaust, either by
oxidizing them into carbon dioxide and water or
reducing them to nitrogen.
6-11.1-4.
Record of transactions required -- Reports to police. -- (a) Every
person
licensed under this chapter shall keep a copy of
the report form obtained from or under the
direction of the attorney general, containing a
comprehensive record of all transactions
concerning precious metals including
catalytic converters. The comprehensive record shall be
hand printed legibly or typed. The record shall
include the name, address, telephone number and
date of birth of the seller, a complete and
accurate description of the property purchased or sold
including any serial numbers or other
identifying marks or symbols, and the date and hour of the
transaction.
(b) All persons
licensed under this chapter shall deliver or mail weekly to the chief of
police of the city or town in which the business
is located and to the attorney general copies of all
report forms from the preceding seven-day
period.
(c) Every person
licensed under this chapter shall retain a copy of the report form for a
period of one year from the date of the sale
stated on the form.
6-11.1-5.
Fourteen day holding period -- Recovery of stolen property -- Return to
rightful owner. -- (a) All persons
licensed under this chapter shall retain in their possession in an
unaltered condition for a period of fourteen
(14) days all precious metals or articles made from or
containing a precious metal including
catalytic converters except items of bullion, including
coins, bars, and medallions, which do not
contain serial numbers or other identifying marks. The
fourteen (14) day holding period shall commence
with the date the report of its acquisition was
delivered to or received through the mails by
the chief of police or the attorney general,
whichever is later. The records so received by
the chief of police and the attorney general shall be
available for inspection only by law enforcement
officers for law enforcement purposes. If the
chief of police has probable cause that precious
metals or an article made from or containing a
precious metal has been stolen, he or she may
give notice, in writing, to the person licensed, to
retain the metal or article for an additional
period of fifteen (15) days, and the person shall retain
the property for this additional fifteen (15)
day period, unless the notice is recalled, in writing,
within the fifteen (15) day period; within the
fifteen (15) day period the chief of police, or his or
her designee, shall designate, in writing, an
officer to secure the property alleged to be stolen and
the persons in possession of the property shall
deliver the property to the officer upon display of
the officer's written designation by the chief
of police or his or her designee. Upon receipt of the
property from the officer, the clerk or person
in charge of the storage of alleged stolen property
for a police department shall enter into a book
a description of every article of property alleged to
be stolen which was brought to the police
department and shall attach a number to each article.
The clerk or person in charge of the storage of
alleged stolen property shall deliver the property to
the owner of the property upon satisfactory
proof of ownership, without any cost to the owner,
provided that the following steps are followed:
(1) A complete
photographic record of the property is made;
(2) A signed
declaration of ownership under penalty of perjury is obtained from the
person to whom the property is delivered;
(3) The person
from whom the custody of the property was taken is served with written
notice of the claim of ownership and is given
ten (10) days from the mailing of the notice to file a
petition in district court objecting to the
delivery of the property to the person claiming
ownership. If a petition is filed in a timely
manner, the district court shall at a hearing determine
by a preponderance of the evidence that the
property was stolen and that the person claiming
ownership of the property is the true owner. The
decision of the district court may only be
appealable by writ of certiorari to the supreme
court.
(b) The clerk or
person in charge of the storage of alleged stolen property shall not be
liable for damages for any official act
performed in good faith in the course of carrying out the
provisions of this section. The photographic
record of the alleged stolen property shall be allowed
to be introduced as evidence in any court of
this state in place of the actual alleged stolen
property; provided that the clerk in charge of
the storage of the alleged stolen property shall take
photographs of the property, and those
photographs shall be tagged and marked and remain in his
possession or control.
SECTION 2. This
act shall take effect upon passage.
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LC02270
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