Bill Text: NJ S3964 | 2018-2019 | Regular Session | Introduced
Bill Title: Revises law concerning certain dealers secondhand goods and pawnbrokers.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2019-06-20 - Introduced in the Senate, Referred to Senate Commerce Committee [S3964 Detail]
Download: New_Jersey-2018-S3964-Introduced.html
Sponsored by:
Senator PATRICK J. DIEGNAN, JR.
District 18 (Middlesex)
Senator LINDA R. GREENSTEIN
District 14 (Mercer and Middlesex)
SYNOPSIS
Revises laws concerning certain dealers of secondhand goods and pawnbrokers.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning dealers of secondhand goods and pawnbrokers and revising various parts of the statutory law and supplementing Title 45 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. (New section) As used in this act:
"Dealer of secondhand goods" or "dealer" means any person or business entity that advertises for or operates a business buying precious metals, jewelry, or other secondhand goods for the purposes of resale. A dealer of secondhand goods shall not include any pawnbroker.
"Secondhand goods" means used or previously owned goods, including, but not limited to, antiques, gold, silver, platinum, or other precious metals, jewelry, coins, gemstones, gift cards, any tools, telephones, typewriters, word processors, GPS devices, computers, computer hardware and software, television sets, radios, record or stereo sets, electronic devices, musical instruments, sporting goods, automotive equipment, collectibles, game cartridges, DVDs, CDs, and other electronically recorded material, firearms, cameras and camera equipment, video equipment, furniture, clothing, and other valuable articles.
Secondhand goods shall not include goods sold by:
(1) judicial sales or sales by executors or administrators;
(2) occasional or auction sales of household goods sold from private homes;
(3) auctions of real estate; or
(4) the occasional sale, purchase, or exchange of coins or stamps by a person at that person's permanent residence or in any municipally-owned building who is engaged in the hobby of collecting coins or stamps and who does not solicit the sale, purchase, or exchange of those coins or stamps to or from the general public.
"Task force" means the Task Force on Dealers of Secondhand Goods established in the Division of State Police.
2. (New section) a. There is established in the Division of State Police a Task Force on Dealers of Secondhand Goods. The task force shall be organized to oversee and certify dealers of secondhand goods in this State. The members of the task force shall be appointed by the Superintendent of State Police and the Attorney General from the Division of State Police, the Office of the Attorney General, and the municipal police departments, in a number to be designated by the superintendent and Attorney General.
b. Each municipal police department and the New Jersey Office of Weights and Measures shall designate a liaison to the task force, for purposes of information sharing and training.
3. (New section) a. (1) The task force shall procure and implement a system for the electronic reporting of information pertaining to the receipt or purchase of secondhand goods by a dealer, and the receipt of pledged articles by a pawnbroker. The system shall allow for submission of information maintained pursuant to subsection b. of section 9 of P.L. , c. (C. ) (pending before the Legislature as this bill) and R.S.45:22-13. The task force may contract with a vendor for the implementation and operation of the system.
(2) Any system selected by the task force shall be certified by the Criminal Justice Information Services Division of the Federal Bureau of Investigation to ensure its data is properly safeguarded and used for law enforcement purposes only, pursuant to 28 C.F.R. s.20.1 et seq.
(3) The system shall be procured and implemented within one year of the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill).
b. (1) Except as otherwise provided in paragraph (2) of this subsection, all records maintained by the task force pursuant to this section shall be confidential and shall not be made available to any individual or institution except as otherwise provided by law.
(2) The information provided pursuant to this section may be shared with any federal or State law enforcement agency as deemed appropriate by the task force, or with any State regulatory agency with jurisdiction over persons engaged in a business in which reportable transactions are conducted.
(3) Any vendor contracted by the task force to implement and operate the system shall keep all records confidential. Any vendor that knowingly fails to keep any record confidential shall be subject to a civil penalty of $500 for the first offense and up to $1,000 for the second and each subsequent offense, to be collected in a civil action by a summary proceeding under the "Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.).
c. The task force shall promulgate rules and regulations necessary to effectuate the provisions of this section.
4. a. Following the procurement and implementation of the system for the electronic reporting of information pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill), the task force shall provide or arrange for training in the use of the system for dealers of secondhand goods and pawnbrokers.
b. The task force shall charge dealers and pawnbrokers a reasonable fee for the use of the electronic reporting system, and training in use of the electronic reporting system, which amount shall not exceed the total cost incurred for the electronic reporting system and training apportioned among all dealers of secondhand goods and pawnbrokers.
5. (New section) a. Any person shall obtain a certification from the task force before acting as a dealer of secondhand goods.
b. Any person desiring to obtain a certification as a dealer of secondhand goods shall apply to the task force and pay any fees required in connection with the application.
c. The task force shall issue a certification to any applicant who meets the requirements of sections 6 and 7 of P.L. , c. (C. )(pending before the Legislature as this bill).
d. A certification as a dealer of secondhand goods shall be issued for a period of three years, and may be renewed upon submission of a renewal application provided by the task force and payment of a fee.
e. In addition to any other penalties provided by law, the task force may suspend or revoke a certification based on a dealer's violation of P.L. , c. (C. )(pending before the Legislature as this bill).
6. (New section) a. An application or renewal application for certification as a dealer of secondhand goods shall be submitted to the task force by the applicant on a form and in a manner prescribed by the task force and shall contain the following information:
(1) the full name, age, and residence of the applicant. In the case of an applicant that is a business entity, the application shall include the full name, age, and residence of any officer, director, partner, or owner of a controlling interest of the business entity;
(2) the location of the applicant's proposed principal place of business and any office, bureau, agency or subdivision; and
(3) any further information as the task force may require to show the good character, competency, and integrity of the applicant.
b. Any person who knowingly makes a false statement in or knowingly omits any material information from the application required by this section shall be guilty of a crime of the fourth degree in addition to any other crime or offense specified by law.
7. (New section) a. Each applicant for certification or renewal of certification as a dealer of secondhand goods shall submit to being fingerprinted in accordance with applicable State and federal laws, rules, and regulations for the purpose of a criminal history record background check to be performed by the task force. In the case of an applicant that is a business entity, the criminal history record background check shall include any officer, director, partner, or owner of a controlling interest of the business entity. An applicant who refuses to consent to, or cooperate in, the securing of a check of criminal history record background information shall not be considered for certification. Each applicant shall bear the cost of the criminal history record background check, including all costs of administering and processing the check. The task force shall compare the applicant's fingerprints with information on file with the State Bureau of Identification in the Division of State Police and the Federal Bureau of Investigation consistent with applicable State and federal laws, rules, and regulations. The Division of State Police shall promptly notify the task force in the event a current holder of a certification or prospective applicant, who was the subject of a criminal history record background check pursuant to this section, is arrested for a crime or offense in this State after the date the background check was performed.
b. A person shall not be certified as a dealer of secondhand goods under the provisions of P.L. , c. (C. )(pending before the Legislature as this bill) if, in the 10-year period prior to the background check, the person has been convicted, as indicated by a criminal history record background check performed pursuant to the provisions of this section, of:
(1) a crime of the first degree;
(2) an offense involving fraud, theft, deceit, or receiving or selling stolen property;
(3) an offense indicative of organized crime activity, including, but not limited to, racketeering, loan-sharking, or facilitating illegal gambling operations, as determined by the task force; or
(4) an offense where the issuance of a certification would be contrary to the public interest, as determined by the task force.
8. (New section) a. A dealer of secondhand goods shall submit to the task force the full name, age, and residence of any person employed by or seeking employment as an employee of the dealer of secondhand goods.
b. Any person seeking employment as an employee of a dealer of secondhand goods, or any person employed by a dealer of secondhand goods at the time of initial application for licensure or renewal of licensure, shall submit to being fingerprinted in accordance with applicable State and federal laws, rules, and regulations for the purpose of a criminal history record background check to be performed by the task force. Each dealer of secondhand goods shall bear the cost of the criminal history record background check, including all costs of administering and processing the check. The task force shall compare the employee's fingerprints with information on file with the State Bureau of Identification in the Division of State Police and the Federal Bureau of Investigation consistent with applicable State and federal laws, rules, and regulations. The Division of State Police shall promptly notify the task force in the event an employee or prospective employee, who was the subject of a criminal history record background check pursuant to this section, is arrested for a crime or offense in this State after the date the background check was performed.
c. A person shall not be employed by a dealer of secondhand goods if, in the 10-year period prior to the background check, the person has been convicted, as indicated by the criminal history record background check performed pursuant to the provisions of this section, of:
(1) a crime of the first degree;
(2) an offense involving fraud, theft, deceit, or receiving or selling stolen property;
(3) an offense indicative of organized crime activity, including, but not limited to, racketeering, loan-sharking, or facilitating illegal gambling operations, as determined by the task force; or
(4) an offense where the employment would be contrary to the public interest, as determined by the task force.
9. (New section) Any dealer of secondhand goods shall:
a. Verify the identity of any person delivering or selling secondhand goods to the dealer by requesting and examining a valid photograph-bearing State or federal driver's license, or other government-issued form of identification bearing a photograph;
b. Before receiving or purchasing any secondhand goods, record the following information:
(1) the date and time of the receipt or purchase of the goods;
(2) the name, address, and a digital photograph of the person delivering or selling the goods;
(3) the type and number of the identification presented by the person delivering or selling the goods, along with a digital photograph of the driver's license or other government-issued form of identification;
(4) a description of each item received or purchased, including, but not limited to its type, amount, and form;
(5) the signature of the person delivering or selling the goods;
(6) the license plate of the motor vehicle delivering the goods, if applicable;
(7) a digital photograph of each item received or purchased as secondhand goods. If the items include serial numbers or barcodes, a separate digital photograph shall record that information; and
(8) any other information as may be required by the task force.
Any information recorded pursuant to this subsection shall be maintained for a period of three years;
c. Make any records maintained pursuant to this section available, upon request, to any law enforcement agency or official investigating the possible theft or resale of secondhand goods;
d. Limit cash payments to any individual to two cash payments in any seven-day period, and five cash payments in any 30-day period. For any purchases beyond two cash payments in any seven-day period, or five cash payments in any 30-day period, payment shall be made by bank check only;
e. Maintain a system of video surveillance at the business location. The system shall record any person delivering or selling secondhand goods to the purchaser, as well as the person purchasing the goods. Recordings of any surveillance shall be maintained for a period of six months from the time they are made;
f. Immediately report to an appropriate law enforcement agency any delivery or sale of secondhand goods under circumstances that would cause a reasonable person to believe the goods were probably stolen or otherwise inappropriately obtained;
g. Prominently display the certification issued pursuant to section 5 of P.L. , c. (C. )(pending before the Legislature as this bill); and
h. By no later than noon of the next business day following the purchase or receipt of goods, submit the information maintained pursuant to subsection b. of this section to the electronic reporting system established pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill).
10. (New section) Any person who reports information to a law enforcement official or agency concerning the suspect delivery or sale of goods shall be immune from civil liability on account of the report, unless that person made the report in bad faith or with malicious purpose.
11. (New section) The requisite knowledge or belief for a violation of N.J.S.2C:20-7 is presumed in the case of a person subject to the provisions of P.L. , c. (C. )(pending before the Legislature as this bill) who purchases any secondhand goods and fails to comply with the requirements of sections 8 or 9 of P.L. , c. (C. )(pending before the Legislature as this bill).
12. (New section) A person who is in violation of P.L. , c. (C. )(pending before the Legislature as this bill) shall be subject to a penalty of not more than $5,000 for the first violation, and not more than $10,000 for each violation thereafter, to be collected in a summary proceeding by the task force pursuant to the "Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.).
13. R.S.45:22-4 is amended to read as follows:
45:22-4. Application for such license shall be in writing and shall state the full name and place of residence of the applicant, or, if the applicant be a partnership, of each member thereof, or, if the applicant be a corporation or association, of each officer and stockholder thereof, together with the place or places where the business is to be conducted.
Any applicant for a license pursuant to this section and any officer, director, partner or owner of a controlling interest of a corporation or partnership filing for licensure shall submit to the commissioner the applicant's name, address, fingerprints and written consent for a criminal history record background check to be performed at the time of initial application and during any license renewal. The commissioner is authorized to exchange fingerprint data with and receive criminal history record information from the State Bureau of Identification in the Division of State Police and the Federal Bureau of Investigation consistent with applicable State and federal laws, rules and regulations, for the purposes of facilitating determinations concerning licensure eligibility. The applicant shall bear the cost for the criminal history record background check, including all costs of administering and processing the check. The Division of State Police shall promptly notify the commissioner in the event a current holder of a license or prospective applicant, who was the subject of a criminal history record background check pursuant to this section, is arrested for a crime or offense in this State after the date the background check was performed.
(cf: P.L.2007, c.81, s.26)
14. R.S.45:22-13 is amended to read as follows:
45:22-13. a. Every pawnbroker shall [keep] create a [book in which shall be recorded, in ink,] record at the time of making each loan[,] which shall include the following information:
(1) the name and address, and a digital photograph, of the pledgor, or, where a pledge is made by a person acting as agent for a disclosed principal, the names and addresses and digital photographs of the principal and agent;
(2) the date and time of the transaction;
(3) the amount of the loan;
(4) a description of the article or articles pledged, and a digital photograph of each article pledged. If the items include serial numbers or barcodes, a separate digital photograph shall record that information;
(5) the type and number of the identification presented by the person delivering or selling the goods, along with a digital photograph of the identification; and
(6) the serial number of the loan.
[There] b. The pawnbroker shall also [be recorded in such book] record the date on which each loan [was] is canceled, and whether [it was] the loan is redeemed or renewed or whether the collateral was sold at auction. [In a separate book the licensee] The pawnbroker shall record[, in ink,] all sales of unredeemed pledges, showing the number, date, amount, and duration of each loan, the date of sale, the amount realized from the sale of the collateral, the amount charged to the pledgor as interest, commission and expenses of sale, the amount of the surplus or deficit, as the case may be, the date on which and the person to whom the surplus, if any, was paid. All entries herein provided for shall be made in the English language.
(cf: R.S.45:22-13)
15. R.S.45:22-34 is amended to read as follows:
45:22-34. a. All pawnbrokers [or dealers in secondhand goods], in addition to keeping a proper record of the deposit and redemption of all goods and pledges shall, each day, except Sunday, before eleven o'clock in the forenoon, deliver to the chief of police, or other head of the police department of the municipality having an established police department and in which said pawnbroker [or dealer] has his place of business, a legible and correct transcript, on blank forms to be furnished by said police department, from the book or books in which said pawnbroker [or dealer] keeps his record of the deposit or redemption of goods and pledges, showing the description of each article or thing received by him during the business day immediately preceding the filing of the report, together with the amount of money loaned thereon, and a description of the person making the pledge. In the case of business done on Saturday such report shall be delivered to the chief of police or head of the police department before eleven o'clock A.M. of the succeeding Monday. Any pawnbroker [or dealer in secondhand goods] who fails to comply with the provisions of this section shall forfeit and pay to the municipality wherein he has his place of business a fine or penalty of one hundred dollars for each and every offense.
b. By no later than noon of the next business day following the pledge of articles, a pawnbroker shall electronically submit the information maintained pursuant to subsection a. of R.S.45:22-13 to the electronic reporting system established pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill).
(cf: R.S.45:22-34)
16. (New section) a. A pawnbroker shall submit to the Commissioner of Banking and Insurance the full name, age, and residence of any person employed or seeking employment as an employee of the pawnbroker.
b. Any person seeking employment as an employee of a pawnbroker shall submit to being fingerprinted in accordance with applicable State and federal laws, rules, and regulations for the purpose of a criminal history record background check to be performed by the commissioner. Each pawnbroker shall bear the cost of the criminal history record background check, including all costs of administering and processing the check. The commissioner shall compare the employee's fingerprints with information on file with the State Bureau of Identification in the Division of State Police and the Federal Bureau of Investigation consistent with applicable State and federal laws, rules, and regulations. The Division of State Police shall promptly notify the commissioner in the event a current holder of a license or prospective applicant, who was the subject of a criminal history record background check pursuant to this section, is arrested for a crime or offense in this State after the date the background check was performed.
c. No person shall be employed by a pawnbroker if in the 10-year period prior to the background check the person has been convicted, as indicated by the criminal history record background check performed pursuant to the provisions of this section, of any offense that would disqualify the an applicant from being licensed as a pawnbroker.
17. The following sections are repealed:
Sections 1 through 6 of P.L.2009, c.215 (C.2C:21-36 through C.2C:21-41); and
Section 3 of P.L.2009, c.9 (C.2C:20-7.2).
18. a. Sections 1 through 4 of this act shall take effect immediately.
b. Sections 5 through 17 of this act shall take effect two years following the date of enactment, except the task force may take any anticipatory administrative action in advance as shall be necessary for the implementation of those sections.
STATEMENT
This bill revises the laws concerning certain dealers of secondhand goods and pawnbrokers. Under the bill, a dealer of secondhand goods is any person or business entity that advertises for or operates a business buying precious metals, jewelry, or other secondhand goods for the purposes of resale. A dealer of secondhand goods does not include any pawnbroker; the bill contains separate provisions that make changes to the current laws pertaining to pawnbrokers.
The bill establishes, in the Division of State Police, a Task Force on Dealers of Secondhand Goods. The task force is to be organized to oversee and certify dealers of secondhand goods in this State. The members of the task force are to be appointed by the Superintendent of State Police and the Attorney General from the Division of State Police, the Office of the Attorney General, and the municipal police departments.
The bill provides that each municipal police department and the New Jersey Office of Weights and Measures must designate a liaison to the task force, for purposes of information sharing and training.
The bill requires a person to obtain a certification from the task force before acting as a dealer of secondhand goods. Any person desiring to obtain a certification as a dealer of secondhand goods must apply to the task force, pay any fees required in connection with the application, and meet certain requirements. A certification as a dealer of secondhand goods is issued for a period of three years, and may be renewed upon submission of a renewal application and payment of a fee.
The bill requires the task force to procure and implement a system for the electronic reporting of information pertaining to the receipt or purchase of secondhand goods by dealers, and the receipt of pledged articles by pawnbrokers.
The bill requires the task force to provide or arrange for training in use of the electronic reporting system for dealers of secondhand goods and pawnbrokers. The task force may charge dealers and pawnbrokers a reasonable fee for the use of the electronic reporting system, and training in use of the electronic reporting system, which amount shall not exceed the total cost incurred for the electronic reporting system and training apportioned among all dealers of secondhand goods and pawnbrokers.
Under the bill, each applicant for certification or renewal of certification as a dealer of secondhand goods, as well as employees of dealers prior to employment and at the time of renewal of certification, must submit to being fingerprinted in accordance with applicable State and federal laws, rules and regulations for the purpose of a criminal history record background check to be performed by the task force. Applicants who refuse to consent to, or cooperate in, the securing of a check of criminal history record background information will not be considered for certification. Each applicant bears the cost of the criminal history record background check, including all costs of administering and processing the check.
The bill prohibits any person from being certified as a dealer of secondhand goods or being employed by a dealer of secondhand goods if in the 10-year period prior to the background check the person has been convicted of certain offenses, as indicated by a criminal history record background check.
The bill imposes certain requirements that dealers of secondhand goods must comply with when purchasing or receiving secondhand goods. The bill requires dealers of secondhand goods to verify the identity of any person delivering or selling secondhand goods to the dealer by requesting and examining a photograph-bearing, valid State or federal driver's license or other government-issued form of identification bearing a photograph.
The bill requires dealers of secondhand goods to record and maintain, before receiving or purchasing any secondhand goods, for a period of three years, the following information:
(1) the date and time of the receipt or purchase of the goods;
(2) the name and address, and a digital photograph of the person delivering or selling the goods;
(3) the type and number of the identification presented by the person delivering or selling the goods, along with a digital photograph of the identification;
(4) a description of the goods received or purchased, including, but not limited to its type, amount, and form;
(5) the signature of the person delivering or selling the goods;
(6) the license plate of the motor vehicle delivering the goods, if applicable;
(7) a digital photograph of each item received or purchased as secondhand goods. If the items include serial numbers or barcodes, a separate digital photograph shall record that information; and
(8) any other information as may be required by the task force.
The bill also requires dealers of secondhand goods to:
(1) Make any records maintained available, upon request, to any law enforcement agency or official investigating the possible theft or resale of secondhand goods;
(2) Limit cash payments to any individual to two cash payments in any seven-day period, and five cash payments in any 30-day period. For any purchases beyond two cash payments in any seven-day period, or five cash payments in any 30-day period, payment shall be made by bank check only;
(3) Maintain a system of video surveillance at the business location;
(4) Immediately report to an appropriate law enforcement agency any delivery or sale of secondhand goods under circumstances that would cause a reasonable person to believe the goods were probably stolen or otherwise inappropriately obtained;
(5) Prominently display its certification as a dealer of secondhand goods; and
(6) By no later than noon of the next business day following the purchase or receipt of goods, submit the information maintained pursuant to the bill to the electronic reporting system established pursuant to the bill.
The bill provides that any person who reports information to a law enforcement official or agency concerning the suspect delivery or sale of goods shall be immune from civil liability on account of the report, unless that person made the report in bad faith or with malicious purpose.
Under the bill, the requisite knowledge or belief for a violation of the law prohibiting receiving stolen property is presumed in the case of a person subject to the provisions of the bill who purchases any secondhand goods and fails to comply with the requirements of the bill.
A dealer of secondhand goods who is in violation of the bill is subject to a penalty of not more than $2,500 for the first violation, and not more than $5,000 for each violation thereafter, to be collected in a summary proceeding by the task force.
The bill also revises a number of provisions of current law that pertain to pawnbrokers. Current law requires pawnbrokers to undergo criminal history background checks at the time of licensure. The bill extends this requirement, so that pawnbrokers are required to undergo criminal history background checks at the time of renewal of licensure, and that employees of pawnbrokers are required to undergo criminal history background checks.
The bill expands the record keeping requirements for pawnbrokers, and provides that pawnbrokers must keep digital photographs of items pledged and digital photographs of pledgors. All records maintained by pawnbrokers must be electronically submitted to the electronic reporting system established pursuant to the bill by no later than noon of the next business day following receipt of the articles.
Pawnbrokers must also, by no later than noon of the next business day following the pledge of articles, submit the information maintained pursuant to the bill to the electronic reporting system established pursuant to the bill.
The bill also repeals current laws that place certain requirements on purchasers of secondhand jewelry. Purchasers of secondhand jewelry are regulated as dealers of secondhand goods under the bill.
