Chapter 139

2006 -- H 7689

Enacted 06/16/06

A N A C T

RELATING TO COMMERCIAL LAW -- PRECIOUS METALS

Introduced By: Representatives Kilmartin, and Moran

Date Introduced: February 16, 2006

It is enacted by the General Assembly as follows:

     SECTION 1. Section 6-11.1-1 of the General Laws in Chapter 6-11.1 entitled "Purchase

and Sale of Precious Metals" is hereby amended to read as follows:

6-11.1-1. License required -- "Person" defined. -- (a) No person, including a

pawnbroker and consignment shop, 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, 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.

     SECTION 2. This act shall take effect upon passage.

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LC02480

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