GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2009
SESSION LAW 2009-482
HOUSE BILL 1637
AN ACT to modernize the record keeping of precious metals purchases by dealers, to subject all dealers in precious metals to similar record-keeping requirements, to increase precious metals permitting fees, to require that a criminal history record check be conducted on employees of precious metals dealers, and to make various other changes to the precious metals permitting statutes.
The General Assembly of North Carolina enacts:
SECTION 1. G.S. 66-164 reads as rewritten:
Unless the context clearly indicates otherwise, the
following words and phrases shall have the following meanings: The
following definitions apply in this Article:
(1) "Dealer"
means a Dealer. - A person who engages in the business of
purchasing purchases precious metals from the public public,
other than by an exempted transaction, in the form of jewelry, flatware,
silver services services, or other forms and holds himself or
herself out to the public by signs, advertising advertising,
or other methods as engaging in such purchases purchases,
including any independent contractor purchasing precious metals under any
arrangement in any department store; store. provided, however,
that permanently located retail merchants shall be exempted insofar as they
make purchases directly from manufacturers or wholesalers of precious metals
for their inventories. Provided further, a permanently located retail merchant
who is primarily engaged in the business of purchasing or acquiring jewelry,
secondhand furniture, antique furniture, objects of art, artifacts, nonprecious
metal collector items, antiquities and other used household furnishings or
fixtures for resale to the public, and who purchases precious metals, articles
or items from the public only incidentally to his main business, may be
exempted as provided in G.S. 66-166 if his total purchases or acquisitions
of precious metals from the public constituted ten percent (10%) or less in
dollar volume of the total purchases or acquisitions in dollar volume made by
such merchant for all such secondhand items or articles in the 12-month period
next preceding the date of application for an exemption under G.S. 66-166.
Provided further that pawnbrokers as defined in G.S. 91A-3 shall be
exempted insofar as they accept An exempted transaction is one
that is (i) not considered in determining whether a person is a dealer under
this Article and (ii) not subject to the requirements of this Article, even if
it is entered into by a person otherwise defined and regulated as a dealer.
Exempted transactions are:
a. Purchases directly from manufacturers or wholesalers of precious metals by permanently located retail merchants for their inventories.
b. pawns
or pledges Pawns, pledges, or purchases of items made of precious metals
under the provisions of Chapter 91A of the General Statutes. metals, if
the transaction is entered into by a licensed pawnbroker and the transaction is
regulated under the provisions of Chapter 91A of the General Statutes.
c. The acquisition of precious metals by a permanently located retail merchant through barter or exchange for other items sold in the ordinary course of the merchant's business, provided that the seller does not receive, as part of the transaction, any sum of money or any gift card or stored-value card, unless the card is redeemable only at that merchant's business.
(2) "Local
law enforcement agency" means: Local law enforcement agency. - The
term means the following, as applicable:
a. The county
police force; or force, if the dealer's business is located within a
county with a county police force and outside the corporate limits of a
municipality.
b. The
county sheriff's office in a county with no county police force for any
business located outside the corporate limits of a municipality or inside the
corporate limits of a municipality having no municipal police force.
"Local law enforcement agency" means the municipal police for any
business located within the corporate limits of a municipality having a police
force. The municipal police force, if the dealer's business is located
within the corporate limits of a municipality having a police force.
c. The county sheriff's office of the county in which the dealer's business is located, if neither sub-subdivision a. nor b. of this subdivision applies.
(3) "Precious
metal" means gold, Precious metal. - Gold, silver, or
platinum platinum, or palladium, as defined below, but excluding coins,
medals, medallions, tokens, numismatic items, art ingots, or art bars.
a. "Gold"
is defined as any Gold. - Any item or article containing ten (10)
10 karat karats of gold or more which may be in
combination or alloy with any other metal.
b. "Silver"
is defined as any Silver. - Any item or article containing 925 parts
per thousand of silver which may be in combination or alloy with any
nonprecious metal or which is marked 'sterling'.
c. "Platinum"
is defined as any Platinum. - Any item or article containing 900
parts per thousand or more of platinum which may be in combination or alloy
with any other metal.
d. Palladium. - Any item or article containing 950 parts per thousand or more of palladium which may be in combination or alloy with any other metal.
For purposes of this Article, "precious metal"
does not include coins, medals, medallions, tokens, numismatic items, art
ingots, or art bars."
SECTION 2. G.S. 66-165 reads as rewritten:
"§ 66-165.
Permits required.Permits.
(a) Dealer
Permit. - Except as provided in subsection (c) of this section, it shall
be is unlawful for any person to engage as a dealer in the business
of purchasing precious metals either as a separate business or in connection
with other business operations without first obtaining a permit for the
business from the local law-enforcement law enforcement agency.
The form of the permit and application therefor shall be as approved by the Department
of Crime Control and Public Safety. Safety shall approve the forms
for both the application and the permit. The application shall be given
under oath and shall be notarized. A 30-day waiting period from the date of
filing of the application is required prior to initial issuance of a permit. A
separate permit shall be issued for each location, place, or premises within
the jurisdiction of the local law-enforcement law enforcement agency
which is used for the conduction of conducting a precious metals
business, and each permit shall designate the location, place or premises to
which it applies. Such No business shall not be conducted
in any other a place other than that designated in the
permit, and no business shall be conducted or in a mobile home,
trailer, camper, or other vehicle, or structure not permanently affixed to the
ground or in any room customarily used for lodging in any hotel, motel, tourist
court, or tourist home as defined in G.S. 105-61.home. The
permit shall be posted in a prominent place on the designated premises. Permits
shall be valid for a period of 12 months from the date issued and may be
renewed without a waiting period upon filing of an application and payment of
the annual fee. The annual fee for each dealer's permits a permit within
each jurisdiction shall be ten dollars ($10.00)is one hundred eighty
dollars ($180.00) to provide for the administrative costs of the local law-enforcement
law enforcement agency, including the purchase of required forms.
forms and the cost of conducting the criminal history record check of
the applicant. The fee shall not be is not refundable even if
the permits are denied or later suspended or revoked. Such permits shall be A
permit issued under this section is in addition to and not in lieu of other
business licenses and are is not transferable. No person other
than the dealer named on the permit and that dealer's employees may engage in the
business of purchasing precious metals under the authority of the permit.
Any dealer applying to the local law-enforcement law
enforcement agency for a permit shall furnish the local law-enforcement law
enforcement agency with the following information:
(1) His The
applicant's full name, and any other names used by the applicant during the
preceding five years. In the case of a partnership, association, or
corporation, the applicant shall list any partnership, association, or
corporate names used during the preceding five years;years.
(2) Current address,
and all addresses used by the applicant during the preceding five years;years.
(3) Physical description;description.
(4) Age;Age.
(5) Driver's license
number, if any, and state of issuance;issuance.
(6) Recent photograph;photograph.
(7) Record of felony
convictions;convictions.
(8) Record of other
convictions during the preceding five years; andyears.
(9) A full set of fingerprints of the applicant.
If the applicant for a dealer's permit is a partnership or
association, all persons owning a ten percent (10%) or more interest in the
partnership or association shall comply with the provisions of this subsection.
Any such These permits shall be issued in the name of the
partnership or association.
If the applicant for a dealer's permit is a corporation, each
officer, director and stockholder owning ten percent (10%) or more of the
corporation's stock, of any class, shall comply with the provisions of this
subsection. Any such These permits shall be issued in the name of
the corporation.
No permit shall be issued to an applicant who, within five
years prior to the date of application,who has been convicted of a
felony involving a crime of moral turpitude, or larceny, or receiving stolen
goods or of similar charges in any federal court or a court of this or any
other state.state, unless the applicant has had his or her rights of
citizenship restored pursuant to Chapter 13 of the General Statutes for five
years or longer immediately preceding the date of application. In the case
of a partnership, association, or corporation, no permit shall be issued to any
applicant with an officer, partner, or director who has, within five years
prior to the date of application,has been convicted of a felony
involving a crime of moral turpitude, or larceny, or receiving stolen goods or
of similar charges in any federal court or a court of this or any other state.state,
unless that person has had his or her rights of citizenship restored pursuant
to Chapter 13 of the General Statutes for five years or longer immediately
preceding the date of application.
The Department of Justice may provide a criminal history
record check to the local law-enforcement law enforcement agency
for a person who has applied for a permit through the agency. The agency shall
provide to the Department of Justice, along with the request, the fingerprints
of the applicant, any additional information required by the Department of
Justice, and a form signed by the applicant consenting to the check of the
criminal record and to the use of the fingerprints and other identifying
information required by the State or national repositories. The applicant's
fingerprints shall be forwarded to the State Bureau of Investigation for a
search of the State's criminal history record file, and the State Bureau of
Investigation shall forward a set of the fingerprints to the Federal Bureau of
Investigation for a national criminal history record check. The agency
shall keep all information pursuant to this subsection privileged, in
accordance with applicable State law and federal guidelines, and the
information shall be confidential and shall not be a public record under
Chapter 132 of the General Statutes.
The Department of Justice may charge each applicant a fee for conducting the checks of criminal history records authorized by this subsection.
(b) Employee
Requirements. - Every employee engaged in the precious metal metals
purchasing business shall, within two business days of being so
engaged, register his or her name and address with the local law-enforcement
law enforcement agency and have his or her photograph taken
by the agency. The employee also shall consent to a criminal history record
check, which shall be performed by the local law enforcement agency. A person
who refuses to consent to a criminal history record check shall not be employed
by a dealer required to be licensed under this section. A person who has been
convicted of a felony involving a crime of moral turpitude, larceny, receiving
stolen goods, or of similar charges shall not be employed by a dealer required
to be licensed under this section, unless the person has had his or her rights
of citizenship restored pursuant to Chapter 13 of the General Statutes for five
years or longer immediately preceding the date of registration. The agency
shall issue to him the employee a certificate of compliance with
this section upon the applicant's payment of the sum of three dollars
($3.00)ten dollars ($10.00) to the agency. The permit certificate
shall be renewed annually for a three-dollar ($3.00) fee and shall be posted
in the work area of the permit holder.registered employee. An
employee is not subject to the requirements of this subsection if the employee
is engaged in the precious metals purchasing business only incidentally to his
or her main job responsibilities, and each precious metals transaction with
which the employee is involved is overseen by a licensed dealer or registered
employee. All records of transactions must be signed by the licensed dealer or
registered employee at the time of the transaction, as required under
G.S. 66-169(a).
The Department of Justice may provide a criminal history record check to the local law enforcement agency for an employee engaged in the precious metals business. The agency shall provide to the Department of Justice, along with the request, the fingerprints of the employee, any additional information required by the Department of Justice, and a form signed by the employee consenting to the check of the criminal record and to the use of the fingerprints and other identifying information required by the State or national repositories. The employee's fingerprints shall be forwarded to the State Bureau of Investigation for a search of the State's criminal history record file, and the State Bureau of Investigation shall forward a set of the fingerprints to the Federal Bureau of Investigation for a national criminal history record check. The agency shall keep all information pursuant to this subsection privileged, in accordance with applicable State law and federal guidelines, and the information shall be confidential and shall not be a public record under Chapter 132 of the General Statutes.
The Department of Justice may charge each employee a fee for conducting the checks of criminal history records authorized by this subsection.
(c) Special
Occasion Permit. - A special occasion permit authorizes the permittee to
purchase precious metals as a dealer participating in any trade shows, antique
shows, and crafts shows conducted within the State. A special occasion permit
shall be issued by any local law-enforcement law enforcement agency;
provided, however, that a permittee under subsection (a) of this section shall
apply for a special occasion permit with the local law-enforcement law
enforcement agency which that issued such the dealer's
permit. An application for a permit shall be on a form as approved by the The
Department of Crime Control and Public Safety shall approve the forms
for both the application and the permit. The application and shall
be given under oath and notarized. A 30-day waiting period from the date of
filing of the application is required prior to initial issuance of a permit.
Any dealer applying to a local law-enforcement law
enforcement agency for a special occasion permit shall furnish the local law-enforcement
law enforcement agency with the information required in an
application for a dealer's permit as set forth in (a). subsection (a)
of this section. In addition, the applicant shall provide a physical address
where any item included in a dealer purchase will be held for the period
required under G.S. 66-170. The physical address shall be the location
where the purchase was made, unless another physical address within the law
enforcement jurisdiction where the purchase was made is approved by the law
enforcement agency that issues the permit. The items shall be available at all
reasonable times for inspection on the premises by law enforcement agencies.
If the applicant for a special occasion permit is a partnership or association, all persons owning a ten percent (10%) or more interest in the partnership or association shall comply with the provisions of this subsection. Any such permits shall be issued in the name of the partnership or association.
If the applicant for a special occasion permit is a corporation, each officer, director and stockholder owning ten percent (10%) or more of the corporation's stock, of any class, shall comply with the provisions of this subsection. Any such permits shall be issued in the name of the corporation.
No permit shall be issued to an applicant who, within five
years prior to the date of application,who has been convicted of a
felony involving a crime of moral turpitude, or larceny, or receiving stolen
goods or of similar charges in any federal court or a court of this or any
other state.state, unless the applicant has had his or her rights of citizenship
restored pursuant to Chapter 13 of the General Statutes for five years or
longer immediately preceding the date of application. In the case of a
partnership, association, or corporation, no permit shall be issued to any
applicant with an officer, partner, or director who has, within five years
prior to the date of application,has been convicted of a felony
involving a crime of moral turpitude, or larceny, or receiving stolen goods or
of similar charges in any federal court or a court of this or any other state.state,
unless that person has had his or her rights of citizenship restored pursuant
to Chapter 13 of the General Statutes for five years or longer immediately
preceding the date of application.
The Department of Justice may provide a criminal history record
check to the local law-enforcement law enforcement agency for a
person who has applied for a permit through the agency. The agency shall
provide to the Department of Justice, along with the request, the fingerprints
of the applicant, any additional information required by the Department of
Justice, and a form signed by the applicant consenting to the check of the
criminal record and to the use of the fingerprints and other identifying
information required by the State or national repositories. The applicant's
fingerprints shall be forwarded to the State Bureau of Investigation for a
search of the State's criminal history record file, and the State Bureau of
Investigation shall forward a set of the fingerprints to the Federal Bureau of
Investigation for a national criminal history record check. The agency
shall keep all information pursuant to this subsection privileged, in
accordance with applicable State law and federal guidelines, and the
information shall be confidential and shall not be a public record under
Chapter 132 of the General Statutes.
The Department of Justice may charge each applicant a fee for conducting the checks of criminal history records authorized by this subsection.
The filing fee for an application for a special
occasion permit application shall be ten dollars ($10.00) is
one hundred eighty dollars ($180.00) to provide for the administrative cost
of the local law-enforcement law enforcement agency including
purchase of required forms. forms and the cost of conducting the
criminal history record check of the applicant. The fee shall not be is
not refundable even if the permit is denied or is later suspended or
revoked. Such permits shall be A special occasion permit is in
addition to and not in lieu of other business licenses and are is
not transferable. No person other than the dealer named on the permit and
that dealer's employees may engage in the business of purchasing precious
metals under the authority of the permit.
A special occasion permit shall be is valid for
12 months from the date issued, unless earlier surrendered, suspended, or
revoked. Application for renewal of a permit for an additional 12 months shall
be on a form as approved by the Department of Crime Control and Public
Safety and shall be accompanied by an application a nonrefundable
renewal fee of ten dollars ($10.00).one hundred eighty dollars
($180.00). A renewal fee shall not be refundable.
Each special occasion permit shall be posted in a prominent place on the premises of any show at which the permittee purchases precious metals."
SECTION 3. G.S. 66-166 is repealed.
SECTION 4. G.S. 66-169 reads as rewritten:
"§ 66-169. Records to be kept.
(a) Every
dealer to whom a permit has been issued pursuant to G.S. 66-165 shall
maintain a tightly bound book or books (not loose-leaf), with pages numbered
in sequence, in which shall be recorded, at the time of any purchase of
precious metal, a serially numbered account and description of the specific
items purchased, including, if applicable, consecutively numbered
records of each precious metals transaction. Each consecutively numbered record
shall be made at the time of the transaction and shall contain a clear and
accurate description of the transaction. A valid description shall include each
of the following applicable and available items of information: the
manufacturer's name, the model, the model number, the serial number, and any
engraved numbers or initials found on the items, items; the date
of the transaction, transaction; and the name, sex, race,
residence, telephone number and driver's license number, if any, number
of the person selling the items purchased. Both the dealer and the seller
shall sign the record entry. purchased; and the signature of both the
dealer or registered employee and the seller. In the event the seller
cannot furnish his driver's license, valid, unexpired photographic
identification in the form of a drivers license, State-issued identification
card, passport, or military identification card bearing his photograph,
card, the dealer shall require two forms of positive identification.
(b) The consecutively numbered records required by this section shall be kept either (i) in a paginated, bound book or set of books with pages numbered in sequence or (ii) in an electronic database that prevents record deletion, tracks all modifications to records, and provides for electronic signatures.
(c) The record
book records shall be open at all reasonable times to inspection on
the premises by law-enforcement agencies law enforcement agencies,
and an individual record shall not be destroyed retained
for at least two years after a transaction. If a dealer maintains a record book
rather than an electronic database, the book shall be retained until at
least two years following the last transaction which the record book
reflects. recorded transaction.
(d) A copy
of each consecutively numbered record book entry shall be filed
within 48 hours of the transaction in the office of the local law-enforcement
law enforcement agency. Mailing the required copy to the local
law-enforcement agency within 48 hours shall constitute compliance with this
section. Records shall be filed in the manner authorized by the local
law enforcement agency, which may include reporting electronically by
transmission over a computer network, by facsimile machine, or by hand
delivering hard copies to the local law enforcement agency. In any case where a
technological failure prevents a dealer from reporting electronically or by
facsimile, the dealer shall have the option of hand delivering a hard copy of
the record to the local law enforcement agency. Regardless of the manner in
which the local law enforcement agency allows reporting, a dealer shall provide
a hard copy of records upon the request of a law enforcement agency.
(e) The
files of local law-enforcement law enforcement agencies which
contain such that contain copies of record book entries records
shall not be subject to inspection and examination as authorized by
G.S. 132-6. Any public official or employee who shall knowingly and
willfully permit any person to have access to or custody or possession of any
portion of such files, unless the person is one specifically authorized by the
local law-enforcement law enforcement agency to have access thereto
for purposes of law-enforcement law enforcement investigation or
civil or criminal proceedings, shall be guilty of a Class 3 misdemeanor and
upon conviction shall only be fined up to five hundred dollars ($500.00)
in the discretion of the court.court but not in excess of five
hundred dollars ($500.00).
Every merchant to whom an exemption has been issued
pursuant to G.S. 66-166 shall maintain a book in which shall be recorded,
at the time of any purchase of precious metal, a description of the specific
items purchased and the date of the transaction. This book shall be open at all
reasonable times to inspection on the premises by law-enforcement agencies and
shall not be destroyed until two years following the last transaction which the
record book reflects."
SECTION 5. G.S. 66-170 reads as rewritten:
"§ 66-170. Items not to be modified.
No item included in a dealer purchase shall be sold, traded
or otherwise disposed of, melted, cut or otherwise changed in form nor shall
any such item be removed from the licensed premises premises,
or other location specified on the application for a special occasion permit, for
a period of five seven days from the date the purchase was
made.transaction was reported in accordance with G.S. 66-169."
SECTION 6. This act becomes effective October 1, 2009. No dealer who is required to be licensed under this act, but who was not required to be licensed prior to the effective date of this act, shall be guilty of engaging as a dealer in the business of purchasing precious metals without a license during the period between October 1, 2009, and January 1, 2010.
In the General Assembly read three times and ratified this the 11th day of August, 2009.
s/ Walter H. Dalton
President of the Senate
s/ Joe Hackney
Speaker of the House of Representatives
s/ Beverly E. Perdue
Governor
Approved 1:28 p.m. this 26th day of August, 2009