2013 -- S 0555 SUBSTITUTE A

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LC01105/SUB A

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2013

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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

     Referred To: Senate Judiciary

It is enacted by the General Assembly as follows:

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     SECTION 1. Sections 6-11.1-2, 6-11.1-4 and 6-11.1-5 of the General Laws in Chapter 6-

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11.1 entitled "Purchase and Sale of Precious Metals" are hereby amended to read as follows:

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

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

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

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

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

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

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

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attorney general may require.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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discharge of the responsibilities granted by this chapter.

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     6-11.1-4. Record of transactions required -- Reports to police. -- (a) Every person

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licensed under this chapter shall keep a copy of the report form obtained from or under the

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direction of the attorney general, containing a comprehensive record of all transactions

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concerning precious metals including catalytic converters. The comprehensive record shall be

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hand printed legibly or typed. The record shall include the name, address, telephone number and

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date of birth of the seller, a complete and accurate description of the property purchased or sold

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including any serial numbers or other identifying marks or symbols, and the date and hour of the

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transaction.

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      (b) All persons licensed under this chapter shall deliver or mail weekly to the chief of

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

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

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all report forms from the preceding seven-day period.

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

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

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     6-11.1-5. Fourteen day holding period -- Recovery of stolen property -- Return to

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rightful owner. -- (a) All persons licensed under this chapter shall retain in their possession in an

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unaltered condition for a period of fourteen (14) days all precious metals or articles made from or

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containing a precious metal including catalytic converters except items of bullion, including

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coins, bars, and medallions, which do not contain serial numbers or other identifying marks. The

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fourteen (14) day holding period shall commence with the date the report of its acquisition was

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delivered to or received through the mails by the chief of police or the attorney general,

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whichever is later. The records so received by the chief of police and the attorney general shall be

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available for inspection only by law enforcement officers for law enforcement purposes. If the

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chief of police has probable cause that precious metals or an article made from or containing a

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precious metal has been stolen, he or she may give notice, in writing, to the person licensed, to

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retain the metal or article for an additional period of fifteen (15) days, and the person shall retain

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the property for this additional fifteen (15) day period, unless the notice is recalled, in writing,

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within the fifteen (15) day period; within the fifteen (15) day period the chief of police, or his or

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her designee, shall designate, in writing, an officer to secure the property alleged to be stolen and

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the persons in possession of the property shall deliver the property to the officer upon display of

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the officer's written designation by the chief of police or his or her designee. Upon receipt of the

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property from the officer, the clerk or person in charge of the storage of alleged stolen property

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for a police department shall enter into a book a description of every article of property alleged to

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be stolen which was brought to the police department and shall attach a number to each article.

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The clerk or person in charge of the storage of alleged stolen property shall deliver the property to

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the owner of the property upon satisfactory proof of ownership, without any cost to the owner,

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provided that the following steps are followed:

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      (1) A complete photographic record of the property is made;

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      (2) A signed declaration of ownership under penalty of perjury is obtained from the

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person to whom the property is delivered;

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      (3) The person from whom the custody of the property was taken is served with written

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notice of the claim of ownership and is given ten (10) days from the mailing of the notice to file a

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petition in district court objecting to the delivery of the property to the person claiming

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ownership. If a petition is filed in a timely manner, the district court shall at a hearing determine

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by a preponderance of the evidence that the property was stolen and that the person claiming

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ownership of the property is the true owner. The decision of the district court may only be

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appealable by writ of certiorari to the supreme court.

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      (b) The clerk or person in charge of the storage of alleged stolen property shall not be

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liable for damages for any official act performed in good faith in the course of carrying out the

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provisions of this section. The photographic record of the alleged stolen property shall be allowed

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to be introduced as evidence in any court of this state in place of the actual alleged stolen

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property; provided that the clerk in charge of the storage of the alleged stolen property shall take

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photographs of the property, and those photographs shall be tagged and marked and remain in his

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possession or control.

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     SECTION 2. Sections 6-53-2, 6-53-4 and 6-53-5 of the General Laws in Chapter 6-53

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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responsible for the cost of conducting such check.

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

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

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

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

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

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

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

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

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waived.

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     6-53-4. Record of transactions required -- Reports to police. -- (a) Every person

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licensed under this chapter shall keep a copy of the report form obtained from or under the

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direction of the attorney general, containing a comprehensive record of all transactions

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concerning tools and electronics. The comprehensive record shall be hand printed legibly or

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typed. The record shall include the name, address, telephone number and date of birth of the

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seller, a complete and accurate description of the property purchased or sold including any serial

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numbers or other identifying marks or symbols, and the date and hour of the transaction.

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      (b) All persons licensed under this chapter shall deliver or send electronically to the chief

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

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

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

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

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

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     6-53-5. Fourteen day holding period -- Recovery of stolen property -- Return to

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rightful owner. -- (a) All persons licensed under this chapter shall retain in their possession in an

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unaltered condition for a period of fourteen (14) days all tools and electronics including items

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which do not contain serial numbers or other identifying marks. The fourteen (14) day holding

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period shall commence with the date the report of its acquisition was delivered to or received

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through the mails by the chief of police or the attorney general, whichever is later. The records so

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received by the chief of police or the attorney general shall be available for inspection only by

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law enforcement officers for law enforcement purposes. If the chief of police has probable cause

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

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person licensed, to retain the tools, electronics or article for an additional period of fifteen (15)

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days, and the person shall retain the property for this additional fifteen (15) day period unless the

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notice is recalled, in writing, within the fifteen (15) day period; within the fifteen (15) day period

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the chief of police, or his or her designee, shall designate, in writing, an officer to secure the

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property alleged to be stolen and the persons in possession of the property shall deliver the

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property to the officer upon display of the officer's written designation by the chief of police or

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his or her designee. Upon receipt of the property from the officer, the clerk or person in charge of

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the storage of alleged stolen property for a police department shall enter into a book a description

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of every article of property alleged to be stolen which was brought to the police department and

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shall attach a number to each article. The clerk or person in charge of the storage of alleged stolen

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property shall deliver the property to the owner of the property upon satisfactory proof of

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ownership, without any cost to the owner, provided that the following steps are followed:

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      (1) A complete photographic record of the property is made;

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      (2) A signed declaration of ownership under penalty of perjury is obtained from the

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person to whom the property is delivered;

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      (3) The person from whom the custody of the property was taken is served with written

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notice of the claim of ownership and is given ten (10) days from the mailing of the notice to file a

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petition in district court objecting to the delivery of the property to the person claiming

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ownership. If a petition is filed in a timely manner, the district court shall at a hearing determine

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by a preponderance of the evidence whether the property was stolen and that the person claiming

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ownership of the property is the true owner. The decision of the district court may only be

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appealable by writ of certiorari to the supreme court.

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      (b) The clerk or person in charge of the storage of alleged stolen property shall not be

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liable for damages for any official act performed in good faith in the course of carrying out the

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provisions of this section. The photographic record of the alleged stolen property shall be allowed

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to be introduced as evidence in any court of this state in place of the actual alleged stolen

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property; provided that the clerk in charge of the storage of the alleged stolen property shall take

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photographs of the property, and those photographs shall be tagged and marked and remain in

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his/her possession or control.

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

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

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Electronics" is hereby amended to read as follows:

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

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

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3 of this act shall take effect upon passage.

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LC01105/SUB A

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO COMMERCIAL LAW - GENERAL REGULATORY PROVISIONS -

PURCHASE AND SALE OF PRECIOUS METALS

***

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     This act would require the electronic submission of required reports under this chapter to

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the attorney general. This act would further provide that a permanent place of business for a

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precious metals license must be in a commercial zone as determined by the municipality where

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the business is located. The act would also provide that licensees must pay an additional fifty

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dollar ($50.00) annual fee for each branch designated in the license.

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     Sections 1 and 2 of this act would take effect on December 31, 2013. Section 3 of this act

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would take effect upon passage.

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LC01105/SUB A

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