Introduced Version






HOUSE BILL No. 1177

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DIGEST OF INTRODUCED BILL



Citations Affected: IC 24-4-19.

Synopsis: Secondhand shops. Requires certain persons who purchase secondhand goods for resale to: (1) maintain a log containing the identity of the seller and a description of the secondhand goods; (2) photograph the seller and the secondhand goods; and (3) keep the goods separate from other goods for 10 business days. Provides that the state police department shall publish on its Internet web site: (1) forms to be used by secondhand dealers to record transactions; (2) a list of secondhand property that is particularly susceptible to theft; and (3) relevant statutes and rules concerning the purchase of secondhand property. Requires a secondhand goods merchant to register annually with the secretary of state and certain local law enforcement agencies before the secondhand goods merchant may engage in business in Indiana. Makes a violation of the secondhand goods statute a Class B infraction.

Effective: July 1, 2013.





Hale




    January 10, 2013, read first time and referred to Committee on Commerce, Small Business and Economic Development.







Introduced

First Regular Session 118th General Assembly (2013)


PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
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HOUSE BILL No. 1177



    A BILL FOR AN ACT to amend the Indiana Code concerning criminal law and procedure.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 24-4-19; (13)IN1177.1.1. -->     SECTION 1. IC 24-4-19 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]:
     Chapter 19. Secondhand Goods
    Sec. 1. This chapter does not apply to the following:
        (1) A secondhand goods merchant in a venue specifically exempted from this chapter by a resolution or ordinance adopted by the legislative body of a municipality (as defined in IC 36-1-2-11) or a county.
        (2) A valuable metal dealer.
        (3) A pawnbroker.
    Sec. 2. A provision of this chapter applies to a secondhand goods merchant or secondhand property transaction specifically regulated by another provision of the Indiana Code (including an architectural salvage material dealer (IC 24-4-16), a dealer in used jewelry (IC 24-4-13), and a dealer in secondhand watches (IC 24-4-3)) unless the provision of this chapter conflicts with a

more specific statute regulating that person or transaction.
    Sec. 3. The following definitions apply throughout this chapter:
        (1) "Secondhand goods merchant" means a person who purchases secondhand property for resale. The term does not include a person who purchases secondhand property for resale on fewer than five (5) days per calendar year.
        (2) "Secondhand property" means a used or secondhand item of tangible personal property. The term does not include property:
            (A) sold on consignment; or
            (B) required to be titled or registered.
    Sec. 4. (a) Unless exempted by this chapter, every secondhand goods merchant in Indiana shall enter, on forms provided under section 7 of this chapter by the state police department, for each purchase of secondhand property the following information:
        (1) The name and address of the merchant.
        (2) The date and place of the purchase.
        (3) The name, address, and age of the person from whom the secondhand property is purchased.
        (4) The secondhand goods merchant shall verify the identity of the person from whom the secondhand property is purchased by use of a government issued photographic identification. The merchant shall enter on the form the type of government issued photographic identification used to verify the identity of the person from whom the secondhand property is purchased, together with the:
            (A) name of the government agency that issued the photographic identification; and
            (B) identification number present on the government issued photographic identification.
        (5) The motor vehicle license number of the vehicle used to deliver the secondhand property to the merchant.
        (6) The price paid for the secondhand property.
        (7) A description of the secondhand property purchased.
        (8) The source of the secondhand property.
        (9) The photograph described in subsection (b).
After entering the information required by this subsection, the secondhand goods merchant shall require the person from whom the secondhand property is purchased to sign the form and verify its accuracy.
    (b) In addition to collecting the information described in subsection (a), a secondhand goods merchant shall take a

photograph of:
        (1) the person from whom the secondhand property is being purchased; and
        (2) the secondhand property.
    (c) A secondhand goods merchant shall make and retain a copy of the government issued photographic identification, described under subsection (a)(4), used to verify the identity of the person from whom secondhand property is purchased and the photograph described in subsection (b). However, a secondhand goods merchant is not required to make a copy of a government issued photographic identification used under subsection (a)(4) to verify the identity of the person from whom secondhand property is purchased if the secondhand goods merchant has retained a copy of the person's government issued photographic identification from a prior purchase from the person by the secondhand goods merchant.
    (d) The completed form, the photograph described in subsection (b), and the copy of the government issued photographic identification described in subsection (c) shall be kept in a separate book or register by the secondhand goods merchant and shall be retained for a period of two (2) years. This book or register shall be made available for inspection by any law enforcement official at any time.

     Sec. 5. The superintendent of the state police department may adopt rules under IC 4-22-2 necessary to administer and enforce the provisions and intent of this chapter.
     Sec. 6. Unless exempted by this chapter, every secondhand goods merchant shall hold each article of secondhand property purchased by the secondhand goods merchant for at least ten (10) business days after the date of purchase:
        (1) at the secondhand goods merchant's regular place of business; and
        (2) separate and apart, so that it is readily identifiable from other articles purchased by the secondhand goods merchant.
During this period, a secondhand goods merchant may not sell or change the form of the secondhand property and shall permit any law enforcement officer to make inspection of the secondhand property.

     Sec. 7. The state police department shall publish the following on the state police department's Internet web site:
        (1) The forms described in section 4(a) of this chapter to be used by a secondhand goods merchant when purchasing

secondhand property.
        (2) A list that describes secondhand property that is particularly susceptible to theft.
        (3) The:
            (A) statutes; and
            (B) rules adopted by the superintendent of the state police department under section 5 of this chapter;
        concerning the regulation of secondhand goods merchants.

     Sec. 8. (a) A secondhand goods merchant must submit a registration to the secretary of state one (1) time every twelve (12) months that includes the following:
        (1) The name of the secondhand goods merchant.
        (2) The addresses of all temporary and permanent places of business owned or leased by the secondhand goods merchant in Indiana.
        (3) Any other information required by the secretary of state.
        (4) A registration fee of one hundred dollars ($100).
    (b) A secondhand goods merchant must submit a registration to a law enforcement agency one (1) time every twelve (12) months for each temporary and permanent place of business owned or leased by the secondhand goods merchant in Indiana as follows:
        (1) If the 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 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 place of business is located.
A registration submitted to a law enforcement agency under this subsection must include the name of the secondhand goods merchant, the address of the place of business, any other information required by the law enforcement agency, and a registration fee of fifty dollars ($50). However, if more than one (1) place of business is registered with the same law enforcement agency, the secondhand goods merchant must pay only one (1) registration fee of fifty dollars ($50) to register all the places of business with the law enforcement agency.

     Sec. 9. A secondhand goods merchant who fails to comply with this chapter commits a Class B infraction.