Chapter 507

2013 -- S 0555 SUBSTITUTE A

Enacted 07/17/13

 

A N A C T

RELATING TO COMMERCIAL LAW - GENERAL REGULATORY PROVISIONS -

PURCHASE AND SALE OF PRECIOUS METALS

         

     Introduced By: Senators Ruggerio, McCaffrey, Jabour, Archambault, and Conley

     Date Introduced: February 28, 2013

     

It is enacted by the General Assembly as follows:

 

     SECTION 1. Sections 6-11.1-2, 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:

 

     6-11.1-2. Application for license -- Annual fee -- Attorney general to promulgate

rules and regulations. (a) Application for the license shall be in writing, under oath, and in the

form prescribed by the attorney general and shall contain the name and the address (both of the

residence and place of business) of the applicant, and if the applicant is a partnership or

association, of every member, and if a corporation, of each officer and director and of the

principal owner or owners of the issued and outstanding capital stock; also the city or town with

the street and number where the business is to be conducted, and any further information that the

attorney general may require.

     (b) After receipt of an application for a license, the attorney general shall conduct an

investigation to determine whether the facts presented in the application are true. The attorney

general may also request a record search and a report from the national crime and information

center (NCIC) of the federal bureau of investigation. If the application discloses that the applicant

has a disqualifying criminal record, or if the investigation indicates that any of the facts presented

in the application are not true, or if the records of the department of the attorney general indicate

criminal activity on the part of the person signing the application and any other persons named in

the application, or if the NCIC report indicates an outstanding warrant for the person signing the

application and any other persons named in the application, then the attorney general may initiate

a nationwide criminal records check that shall include fingerprints submitted to by the federal

bureau of investigation regarding the person signing the application and any other persons named

in the application, in accordance with any applicable federal standards regarding a criminal

records check. Upon the annual renewal of a license or the opening of a new branch designated in

the license, the attorney general may initiate a nationwide criminal records check that shall

include fingerprints submitted to the federal bureau of investigation regarding the licensee and

any other persons named in the license. The individual who is subject to the national records

check shall be responsible for the cost of conducting such check.

     (c) The applicant at the time of making his or her initial application only shall pay to the

attorney general the sum of fifty dollars ($50.00) as a fee for investigating the application and the

additional sum of fifty dollars ($50.00) shall be paid annually. The licensee shall pay an

additional fifty dollars ($50.00) annually for each branch designated in the license. Licenses shall

not be assignable or transferable to any other person or entity. The attorney general is authorized

to promulgate rules and regulations not inconsistent with this chapter to provide for the effective

discharge of the responsibilities granted by this chapter.

 

     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 electronically submit to the

attorney general, in a manner specified by the attorney general, 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. Sections 6-53-2, 6-53-4 and 6-53-5 of the General Laws in Chapter 6-53

entitled "Purchase and Sale of Tools and Electronics" are hereby amended to read as follows:

 

     6-53-2. Application for license -- Annual fee -- Attorney general to promulgate rules

and regulations. -- (a) Application for the license shall be in writing, under oath, and in the form

prescribed by attorney general and shall contain the name and the address (both of the residence

and place of business) of the applicant, and if the applicant is a partnership or association of every

member, and if a corporation, of each officer and director and of the principal owner or owners of

the issued and outstanding capital stock; also the city or town with the street and number where

the business is to be conducted, and any further information that the attorney general may require.

After receipt of an application for a license, the attorney general shall conduct an investigation to

determine whether the facts presented in the application are true. The attorney general may also

request a record search and a report from the national crime and information center (NCIC) of the

federal bureau of investigation. If the application discloses that the applicant has a disqualifying

criminal record, or if the investigation indicates that any of the facts presented in the application

are not true, or if the records of the department of the attorney general indicate criminal activity

on the part of the person signing the application and any other persons named in the application,

or if the NCIC report indicates an outstanding warrant for the person signing the application and

any other persons named in the application, then the attorney general may initiate a nationwide

criminal records check that shall include fingerprints submitted to by the federal bureau of

investigation regarding the person signing the application and any other persons named in the

application, in accordance with any applicable federal standards regarding a criminal records

check. Upon the annual renewal of a license or the opening of a new branch designated in the

license, the attorney general may initiate a nationwide criminal records check that shall include

fingerprints submitted to the federal bureau of investigation regarding the licensee and any other

persons named in the license. The individual who is subject to the national records check shall be

responsible for the cost of conducting such check.

     (b) The applicant at the time of making his or her initial application only shall pay to the

attorney general the sum of fifty dollars ($50.00) as a fee for investigating the application and the

additional sum of fifty dollars ($50.00) shall be paid annually. The licensee shall pay an

additional fifty dollars ($50.00) annually for each branch designated in the license. Licenses shall

not be assignable or transferable to any other person or entity. The attorney general is authorized

to promulgate rules and regulations not inconsistent with this chapter to provide for the effective

discharge of the responsibilities granted by this chapter; provided, however, if If the applicant is

a holder of a precious metals and dealers license the fees as required in this section shall be

waived.

 

     6-53-4. 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 tools and electronics. 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 send electronically to the chief

of police of the city or town in which the business is located and electronically submit to the

attorney general, in a manner specified by the attorney general, to the attorney general copies of

all report forms from the preceding seven (7) day period.

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

of one year from the date of the sale stated on the form.

 

     6-53-5. 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 tools and electronics including items

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 or 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

to believe that tools and electronics have been stolen, he or she may give notice, in writing, to the

person licensed, to retain the tools, electronics 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 whether 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/her possession or control.

 

     SECTION 3. Section 2 of Chapter 444 of the 2012 public laws entitled "An Act Related

to Commercial Law General Regulatory Provisions Purchase and Sale of Tools and

Electronics" is hereby amended to read as follows:

 

     Section 2. This act shall take effect on June 15 December 31, 2013.

 

     SECTION 4. Sections 1 and 2 of this act shall take effect on December 31, 2013. Section

3 of this act shall take effect upon passage.

     

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LC01105/SUB A

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