Citations Affected: IC 4-5-1-13; IC 24-4; IC 24-7; IC 25-37.5-1-1; IC 28-7-5-16;
IC 35-51-24-1.
Synopsis: Precious metal and rental purchase agreements. Conference committee report for EHB 1188. Regulates precious metal dealers who engage in the business of purchasing used jewelry and other used articles of personal property that are made of gold, silver, or platinum and were previously purchased at retail, acquired by gift, or obtained in some other fashion by a consumer for the purpose of reselling the precious metal in any form. Provides that, for purposes of the law concerning precious metal dealers, precious metal does not include certain coins, ingots, or industrial residue or byproducts. Provides that a precious metal dealer may engage in the business of purchasing or reselling precious metal in Indiana only at a fixed premises: (1) owned; or (2) leased for a term of at least 12 months; by the precious metal dealer. Requires a precious metal dealer to register annually with the secretary of state and certain local law enforcement agencies before the precious metal dealer may engage in business in Indiana. Provides that registration fees are to be deposited into the electronic and enhanced access fund. Requires a precious metal dealer to: (1) verify the identity of a person from whom precious metal is purchased by use of a government issued photographic identification; (2) take and retain a photograph of precious metal purchased by the dealer; (3) include certain information about a seller of precious metal on the bill of sale for the purchase of the precious metal; (4) report a description of all precious metal purchased each day to the appropriate local law enforcement agency; and (5) hold precious metal for at least 10 calendar days after the date the precious metal is purchased. Provides that during the 10 day period the precious metal dealer: (1) may not change the form of the precious metal; and (2) must allow a law enforcement officer to inspect the precious metal. Specifies that the law concerning precious metal dealers does not apply to: (1) licensed pawnbrokers; (2) valuable metal dealers; (3) retail jewelers remitting at least $10,000 in gross retail tax in the immediately preceding year; or (4) the purchase or resale of a mint issued coin by a person whose primary business is buying, selling, and trading mint issued coins. Provides that the law concerning valuable metal dealers does not apply to the purchase or resale of: (1) precious metal regulated under the precious metal dealers law; or (2) used jewelry regulated under the jewelers law. Allows a lessor, in connection with a rental purchase agreement, to contract for and receive a fee for rental payments made by telephone if certain conditions are met. Allows a lessee who fails to make timely rental payments to reinstate the original rental purchase agreement without losing any rights or options previously acquired under
the rental purchase agreement if: (1) after failing to make a timely rental payment, the lessee
surrenders the property to the lessor not later than seven days after the date the lessor requests
the property be surrendered; and (2) not more than 120 days elapse after the date the lessee
surrenders the property. (Current law states that the lessee has to surrender the property promptly
and that not more than 60 days must elapse after the date the lessee surrenders the property.)
Provides that if a pawnbroker purchases precious metal from a seller, the pawnbroker must retain
the precious metal for at least 10 calendar days. (This conference committee report: (1) adds
a definition of "mint issued coin"; (2) removes references to coin shops and coin shows and
provides that the law concerning precious metal dealers does not apply to the purchase or
resale of a mint issued coin by a person whose primary business is buying, selling, and
trading mint issued coins; (3) removes the exemption from regulation under the law
concerning precious metal dealers for flea markets; (4) restates and relocates the language
concerning pawnbrokers; (5) adds language concerning rental purchase agreements; and
(6) makes technical corrections.)
Effective: July 1, 2013; January 1, 2014.
MR. SPEAKER:
Your Conference Committee appointed to confer with a like committee from the Senate
upon Engrossed Senate Amendments to Engrossed House Bill No. 1188 respectfully reports
that said two committees have conferred and agreed as follows to wit:
that the House recede from its dissent from all Senate amendments and that
the House now concur in all Senate amendments to the bill and that the bill
be further amended as follows:
Delete everything after the enacting clause and insert the following:
JANUARY 1, 2014]:
Chapter 19. Precious Metal Dealers
Sec. 1. This chapter does not apply to the following:
(1) A jeweler regulated under IC 24-4-13 concerning used
jewelry sales.
(2) A valuable metal dealer (as defined in IC 25-37.5-1-1(b)).
(3) A pawnbroker licensed under IC 28-7-5.
(4) The purchase or resale of a mint issued coin by a person
whose primary business is buying, selling, and trading mint
issued coins.
Sec. 2. As used in this chapter, "jewelry" means personal
ornaments made of gold, silver, or platinum that may or may not
contain precious, semiprecious, or imitation stones.
Sec. 3. As used in this chapter, "mint issued coin" means a coin
that:
(1) is bought or sold as an investment in a rare or precious
metal;
(2) has a collectable value greater than the face value of the
coin; or
(3) is collectable or desirable due to the age, rarity, or
condition of the coin.
Sec. 4. As used in this chapter, "permanent place of business"
means a fixed premises:
(1) owned by a precious metal dealer; or
(2) leased by a precious metal dealer for a term of at least
twelve (12) months;
at which the precious metal dealer purchases or resells precious
metal.
Sec. 5. As used in this chapter, "person" means an individual, a
firm, an association, a limited liability company, a partnership, a
joint stock association, a trust, or a corporation.
Sec. 6. (a) As used in this chapter, "precious metal" means:
(1) used jewelry; and
(2) other used articles of personal property that:
(A) are made of gold, silver, or platinum; and
(B) were previously purchased at retail, acquired by gift,
or obtained in some other fashion by a consumer.
(b) The term does not include:
(1) mint issued coins;
(2) ingots; or
(3) industrial residue or byproducts that contain gold, silver,
or platinum purchased from manufacturing firms.
Sec. 7. As used in this chapter, "precious metal dealer" means
a person who engages in the business of purchasing precious metal
for the purpose of reselling the precious metal in any form.
Sec. 8. As used in this chapter, "purchase" means to acquire
property in exchange for cash, credit, or other valuable
consideration.
Sec. 9. As used in this chapter, "seller" means a consumer or
other person who sells precious metal to a precious metal dealer.
Sec. 10. As used in this chapter, "used jewelry" means jewelry
previously purchased at retail, acquired by gift, or obtained in
some other fashion by a consumer.
Sec. 11. A precious metal dealer who purchases or resells
precious metal must comply with this chapter. However, this
chapter does not apply to jewelry used by a customer as a trade-in
toward the purchase of a new piece of jewelry.
Sec. 12. A precious metal dealer may engage in the business of
purchasing or reselling precious metal in Indiana only at a
permanent place of business owned or leased by the precious metal
dealer.
Sec. 13. (a) A precious metal dealer must satisfy the registration
requirements described in subsections (b) and (c) before the
precious metal dealer may engage in the business of purchasing or
reselling precious metal at a permanent place of business in
Indiana.
(b) A precious metal dealer must submit to the secretary of state
one (1) time every twelve (12) months a registration that includes
the following:
(1) The name of the precious metal dealer.
(2) The addresses of all permanent places of business owned
or leased by the precious metal dealer in Indiana.
(3) Any other information required by the secretary of state.
(4) A registration fee of one hundred dollars ($100), to be
deposited by the secretary of state into the electronic and
enhanced access fund established by IC 4-5-10-5.
(c) A precious metal dealer must submit a registration to a law
enforcement agency one (1) time every twelve (12) months for each
permanent place of business owned or leased by the precious metal
dealer in Indiana as follows:
(1) If the permanent place of business is located in a
municipality that maintains a law enforcement agency, the
registration shall be submitted to the law enforcement agency
of the municipality.
(2) If the permanent place of business is not located in a
municipality that maintains a law enforcement agency, the
registration shall be submitted to the sheriff of the county in
which the permanent place of business is located.
A registration submitted to a law enforcement agency under this
subsection must include the name of the precious metal dealer, the
address of the permanent place of business, any other information
required by the law enforcement agency, and a registration fee of
fifty dollars ($50). However, if a precious metals dealer registers
more than one (1) permanent place of business with the same law
enforcement agency, the precious metal dealer must pay a
registration fee of fifty dollars ($50) to register all the permanent
places of business with the law enforcement agency.
Sec. 14. (a) If a precious metal dealer purchases precious metal
from a seller, the precious metal dealer shall:
(1) verify the identity of the seller by use of a government
issued photographic identification;
(2) make a copy of the seller's government issued
photographic identification; and
(3) take a photograph of the precious metal.
(b) A precious metal dealer shall retain a copy of the:
(1) government issued photographic identification; and
(2) photograph;
described in subsection (a) as required in section 15(e) of this
chapter.
Sec. 15. (a) A precious metal dealer shall keep and use in the
precious metal dealer's business the books, accounts, and records
necessary to determine whether the precious metal dealer is
complying with this chapter.
(b) A precious metal dealer shall preserve the books, accounts,
and records, including cards used in the card system, for at least
two (2) years after making the final entry on any purchase
recorded.
(c) The precious metal dealer shall keep the books and records
so that the business of purchasing precious metal for resale may be
readily separated and distinguished from any other business in
which the precious metal dealer is engaged.
(d) If a precious metal dealer, in the conduct of the business,
purchases precious metal from a seller, the purchase shall be
evidenced by a bill of sale properly signed by the seller verifying
the accuracy of the information in the bill of sale. All bills of sale
must be in duplicate and must list the following separate items:
(1) The date of sale.
(2) The:
(A) name;
(B) address;
(C) date of birth; and
(D) driver's license number or Social Security number;
of the seller from whom the precious metal was purchased.
(3) The amount of consideration paid for the precious metal.
(4) The:
(A) name of the precious metal dealer; and
(B) address of the permanent place of business where the
purchase occurred.
(5) A description of each article of precious metal sold.
However, if multiple articles of precious metal of a similar
nature are delivered together in one (1) transaction, the
description of the articles is adequate if the description
contains the quantity of the articles delivered and a physical
description of the type of articles delivered, including any
unique identifying marks, numbers, names, letters, or special
features.
(6) The type of government issued photographic identification
used to verify the identity of the seller under section 14 of this
chapter, together with the name of the governmental agency
that issued the photographic identification and the
identification number present on the government issued
photographic identification.
(e) If a precious metal dealer purchases precious metal, the
precious metal dealer shall retain as part of the books, accounts,
and records kept by the precious metal dealer under this section:
(1) the original copy of the bill of sale described in subsection
(d); and
(2) the:
(A) copy of the seller's government issued photographic
identification; and
(B) photograph of the precious metal;
obtained by the precious metal dealer as required under
section 14 of this chapter.
The second copy of the bill of sale shall be delivered to the seller by
the precious metal dealer at the time of sale.
(f) The heading on all bill of sale forms must be in boldface type.
Sec. 16. (a) Each day a precious metal dealer purchases precious
metal at a permanent place of business, the precious metal dealer
shall report the information described in section 15(d) of this
chapter concerning the precious metal to a law enforcement agency
as follows:
(1) If the permanent place of business is located in a
municipality that maintains a law enforcement agency, the
report required under this section shall be made to the law
enforcement agency of the municipality.
(2) If the permanent place of business is not located in a
municipality that maintains a law enforcement agency, the
report required under this section shall be made to the sheriff
of the county in which the permanent place of business is
located.
(b) The information reported to a law enforcement agency
under subsection (a) shall be submitted in an electronic format if
requested by the law enforcement agency.
Sec. 17. (a) A precious metal dealer shall make the records and
information under section 15 of this chapter available for
examination upon the request of a law enforcement agency (as
defined in IC 10-13-3-10).
(b) The law enforcement agency under subsection (a) shall
determine if:
(1) the records are sufficient; and
(2) the precious metal dealer has made the information
reasonably available.
Sec. 18. A precious metal dealer may not purchase precious
metal:
(1) from an individual less than eighteen (18) years of age; or
(2) that the precious metal dealer believes or should have
reason to believe is stolen property acquired as a result of a
crime.
Sec. 19. (a) A precious metal dealer shall hold each article of
precious metal purchased by the precious metal dealer for at least
ten (10) calendar days after the date the precious metal dealer
purchases the precious metal:
(1) at the precious metal dealer's permanent place of business
where the purchase occurred; and
subdivisions (1) through (6).
(b) A fee may not be charged under this section unless there is
interaction between a live employee or representative of the lessor
and the lessee.
business transacted in Indiana may be readily separated and
distinguished from the business of the licensee transacted elsewhere
and from any other business in which the licensee may be engaged. To
determine whether the licensee is complying with this chapter and with
rules adopted by the department under this chapter, the department may
examine the books, accounts, and records required to be kept by the
licensee under this subsection. If the department examines the books,
accounts, and records of the licensee under this subsection, the licensee
shall pay all reasonably incurred costs of the examination in
accordance with the fee schedule adopted under IC 28-11-3-5. A fee
established by the department under IC 28-11-3-5 may be charged for
each day a fee under this subsection is delinquent.
(b) If a pawnbroker, in the conduct of the business, purchases an
article from a seller, the purchase shall be evidenced by a bill of sale
properly signed by the seller. All bills of sale must be in duplicate and
must recite the following separate items:
(1) Date of bill of sale.
(2) Amount of consideration.
(3) Name of pawnbroker.
(4) Description of each article sold. However, if multiple articles
of a similar nature that do not contain an identification or serial
number (such as precious metals, gemstones, musical recordings,
video recordings, books, or hand tools) are delivered together in
one (1) transaction, the description of the articles is adequate if
the description contains the quantity of the articles delivered and
a physical description of the type of articles delivered, including
any other unique identifying marks, numbers, names, letters, or
special features.
(5) Signature of seller.
(6) Address of seller.
(7) Date of birth of the seller.
(8) The type of government issued identification used to verify the
identity of the seller, together with the name of the governmental
agency that issued the identification, and the identification
number present on the government issued identification.
(c) If a pawnbroker, in the conduct of the business, purchases an
article from a seller on the condition of selling the property back at a
stipulated price, the transaction shall be evidenced by a bill of sale
properly signed by the seller. All such bills of sale must be in duplicate
and recite the information in subsection (b) and must also contain the
following information:
(1) Date of resale.
(2) Amount of resale.
(d) The original copy of the bill of sale shall be retained by the
pawnbroker. The second copy shall be delivered to the seller by the
pawnbroker at the time of sale. The heading on all bill of sale forms
must be in boldface type.
(e) If a pawnbroker, in the conduct of the business, purchases
precious metal (as defined in IC 24-4-19-6) from a seller, the
pawnbroker shall, for at least ten (10) calendar days after the date
the pawnbroker purchases the precious metal, retain the precious
metal:
(1) at the pawnbroker's permanent place of business where
the pawnbroker purchased the precious metal; and
(2) separate from other precious metal.
(e) (f) Each licensee shall maintain a record of control indicating the
number of accounts and dollar value of all outstanding pawnbroking
receivables. Each licensee shall maintain a separate record of
transactions subject to subsection (c).
(f) (g) If a licensee contracts with an outside vendor to provide a
service that would otherwise be undertaken internally by the licensee
and be subject to the department's routine examination procedures, the
person that provides the service to the licensee shall, at the request of
the director, submit to an examination by the department. If the director
determines that an examination under this subsection is necessary or
desirable, the examination may be made at the expense of the person
to be examined. If the person to be examined under this subsection
refuses to permit the examination to be made, the director may order
any licensee that receives services from the person refusing the
examination to:
(1) discontinue receiving one (1) or more services from the
person; or
(2) otherwise cease conducting business with the person.
S
igned by:
____________________________ ____________________________
Representative Dermody Senator Charbonneau
Chairperson
____________________________ ____________________________
Representative Riecken Senator Skinner
House Conferees Senate Conferees