Bill Text: OH HB164 | 2013-2014 | 130th General Assembly | Introduced

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Bill Title: To make changes to the licensing and records requirements, exemptions, penalties, and other provisions of the Precious Metal Dealers Law and to limit the amount precious metal dealers may charge the true owner of stolen property when restoring that property to the true owner.

Spectrum: Slight Partisan Bill (Republican 4-2)

Status: (Introduced - Dead) 2013-05-14 - To Commerce, Labor and Technology [HB164 Detail]

Download: Ohio-2013-HB164-Introduced.html

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As Introduced

130th General Assembly Regular Session 2013-2014

H. B. No. 164

Representative Henne 

Cosponsors: Representatives Hackett, Pelanda, McGregor, Lundy, Fedor 

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A BILL

To amend sections 4728.01 to 4728.14, and 4728.99 and

1

to enact sections 4728.061, 4728.16, 4728.17, and

2

4728.18 of the Revised Code to make changes to the

3

licensing and records requirements, exemptions,

4

penalties, and other provisions of the Precious

5

Metal Dealers Law and to limit the amount precious

6

metal dealers may charge the true owner of stolen

7

property when restoring that property to the true

8

owner.

9

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That sections 4728.01, 4728.02, 4728.03, 4728.04,	10
4728.05, 4728.06, 4728.07, 4728.08, 4728.09, 4728.10, 4728.11,	11
4728.12, 4728.13, 4728.14, and 4728.99 be amended and sections	12
4728.061, 4728.16, 4728.17, and 4728.18 of the Revised Code be	13
enacted to read as follows:	14

Sec. 4728.01.  As used in this chapter:

15

(A) "Precious metals dealer" means a person who is engaged in	16
the business of purchasing articles made of or containing gold,	17
silver, platinum, or other precious metals or jewels of any	18
description if, in any manner, including any form of	19
advertisement, signage, electronic media, including electronic	20
mail, or other solicitation of customers, the person holds	21
himself, herself, or itself out to the public as willing to	22
purchase such articles.	23

(B) "Superintendent of financial institutions" includes the	24
deputy superintendent for consumer finance as provided in section	25
1181.21 of the Revised Code.	26

(C) "Person" means any individual, firm, partnership,	27
corporation, association, or other business entity. "Person" does	28
not include a person, corporation, partnership, or other entity	29
engaged in business that is exempted under section 4728.11 of the	30
Revised Code.	31

(D) "Purchase" means the acquisition of precious metals,	32
jewels, or jewelry of any description, or both, for a	33
consideration of cash, goods, or other precious metals, jewels, or	34
jewelry.	35

(E) "Local law enforcement agency" means any of the	36
following:	37

(1) For a business located within the jurisdiction of a	38
municipal corporation, the chief or head of the police department	39
for that municipal corporation;	40

(2) For a business not located within the jurisdiction of a	41
municipal corporation, the sheriff of the county in which the	42
business is located.	43

Sec. 4728.02.  (A) Except as provided in division (B) of this	44
section, no person shall act as a precious metals dealer or	45
advertise in any form to the public of the person's willingness to	46
purchase precious metals or jewels, without first having obtained	47
a license from the division of financial institutions in the	48
department of commerce.	49

(B) Notwithstanding any provision in this chapter to the	50
contrary, a person holding a license as a pawnbroker pursuant to	51
Chapter 4727. of the Revised Code may act as a precious metals	52
dealer without being separately licensed pursuant to this chapter.	53
Pawnbrokers are subject to all the requirements imposed upon the	54
conduct of persons holding a regular precious metals dealer's	55
license with respect to any articles that the pawnbroker purchases	56
made of or containing gold, silver, platinum, or other precious	57
metals or jewels of any description.	58

Sec. 4728.03.  (A) As used in this section, "experience and	59
fitness in the capacity involved" means that theall of the	60
following are fulfilled:	61

(1) The applicant for a precious metals dealer's license has	62
had sufficient financial responsibility, reputation, and	63
experience in the business of precious metals dealer, or a related	64
business, to act as a precious metals dealer in compliance with	65
this chapter.	66

(2) The applicant for a precious metals dealer's license and	67
any stockholders, owners, managers, directors, officers, and	68
employees of the applicant have submitted to a criminal records	69
check in accordance with division (G) of this section.	70

(3) The applicant for a precious metals dealer's license has	71
done either of the following:	72

(a) Owned or leased for at least one year a fixed premises in	73
the state as a place of business;	74

(b) Signed a lease for a minimum period of one year for a	75
fixed premises in the state to be used as a place of business.	76

(B)(1) The divisionsuperintendent of financial institutions	77
in the department of commerce may grant a precious metals dealer's	78
license to any person of good character, having experience and	79
fitness in the capacity involved to engage in the business of a	80
precious metals dealer, who demonstrates a net worth of at least	81
tenone hundred thousand dollars and the ability to maintain that	82
net worth during the licensure period. The superintendent of	83
financial institutions shall compute the applicant's net worth	84
according to generally accepted accounting principles.	85

(2) In place of the demonstration of net worth required by	86
division (B)(1) of this section, an applicant may obtain a surety	87
bond issued by a surety company authorized to do business in this	88
state if all of the following conditions are met:	89

(a) A copy of the surety bond is filed with the division of	90
financial institutions in the department of commerce;	91

(b) The bond is in favor of any person, and of the state for	92
the benefit of any person, injured by any violation of this	93
chapter;	94

(c) The bond is in the amount of not less than tenone	95
hundred thousand dollars.	96

(3) Before granting a license under this division, the	97
divisionsuperintendent shall determine that the applicant meets	98
the requirements of division (B)(1) or (2) of this section.	99

(C)(1) The divisionsuperintendent shall require an applicant	100
for a precious metals dealer's license to pay to the division a	101
nonrefundable, initial investigation fee of two hundred dollars	102
which shall be for the exclusive use of the state. The license fee	103
for a precious metals dealer's license and the renewal fee shall	104
be determined by the superintendent, provided that the fee may not	105
exceed three hundred dollars. A	106

(2) A license issued by the divisionsuperintendent before	107
January 1, 2012, shall expire on the lastthirtieth day of June	108
next following the date of its issuance. A license issued by the	109
superintendent on or after January 1, 2012, shall expire on the	110
thirtieth day of June in the even-numbered year next following the	111
date of its issuance. Fifty per cent of license fees shall be for	112
the use of the state, and fifty per cent shall be paid to the	113
municipal corporation, or if outside the limits of any municipal	114
corporation, to the county in which the office of the licensee is	115
located. All portions of license fees payable to municipal	116
corporations or counties that are paid before January 1, 2012,	117
shall be paid as they accrue, by the treasurer of state, on	118
vouchers issued by the director of budget and management. All	119
portions of license fees payable to municipal corporations or	120
counties that are paid on or after January 1, 2012, shall be paid	121
biennially, by the treasurer of state, on vouchers issued by the	122
director of budget and management.	123

(D) Every such(1) Until December 31, 2011, every license	124
issued or renewed before January 1, 2012, shall be renewed	125
annually by the lastthirtieth day of June according to the	126
standard renewal procedure of Chapter 4745. of the Revised Code.	127
Every license issued or renewed on or after January 1, 2012, shall	128
be renewed biennially by the thirtieth day of June in accordance	129
with the standard renewal procedure of Chapter 4745. of the	130
Revised Code.	131

(2) No license shall be granted to any person not a resident	132
of or the principal office of which is not located in the	133
municipal corporation or county designated in such license,	134
unless, and until such applicant shall, in writing and in due	135
form, to be first approved by and filed with the division, appoint	136
an agent, a resident of the state, and city or county where the	137
office is to be located, upon whom all judicial and other process,	138
or legal notice, directed to the applicant may be served; and in	139
case of the death, removal from the state, or any legal disability	140
or any disqualification of any agent, service of process or notice	141
may be made upon the superintendent.	142

(3) The superintendent shall not renew the license of a	143
licensee who does not have a place of business as described in	144
division (A)(3) of this section.	145

(4) The fee for renewal of a license shall be equivalent to	146
the fee for an initial license established by the superintendent	147
pursuant to section 1321.20 of the Revised Code. Any licensee who	148
wants to renew a license, but fails to do so on or before the date	149
the license expires, shall reapply for licensure in the same	150
manner, and subject to the same requirements, as for initial	151
licensure, unless the licensee pays the superintendent, on or	152
before the thirty-first day of August of the year the license	153
expires, a late renewal penalty of one hundred dollars in addition	154
to the regular renewal fee.	155

(5) Any licensee who fails to renew a license on or before	156
the date the license expires, including a person who renews a	157
license between the first day of July and the thirty-first day of	158
August of the year the license expires, is prohibited from acting	159
as a precious metals dealer until the license is renewed or a new	160
license is issued under this section.	161

(6) The superintendent may refuse to issue or renew the	162
license of any person who violates division (D) of this section.	163

(E) The division may, pursuant to Chapter 119. of the Revised	164
Code, upon notice to the licensee and after giving the licensee	165
reasonable opportunity to be heard, revoke or suspend any license,	166
if the licensee or the licensee's officers, agents, or employees	167
violate this chapter. Whenever, for any cause, the license is	168
revoked or suspended, the division shall not issue another license	169
to the licensee nor to the husband or wife of the licensee, nor to	170
any copartnership or corporation of which the licensee is an	171
officer, nor to any person employed by the licensee, until the	172
expiration of at least one year from the date of revocation of the	173
license.	174

(F) A license issued under this chapter is not transferable.

175

(G) In conducting an investigation to determine whether an	176
applicant satisfies the requirements for licensure under this	177
section, the superintendent may request that the superintendent of	178
the bureau of criminal identification and investigation	179
investigate and determine whether the bureau has procured any	180
information pursuant to section 109.57 of the Revised Code	181
pertaining to the applicant.	182

If the superintendent of financial institutions determines	183
that conducting an investigation to determine whether an applicant	184
satisfies the requirements for licensure under this section will	185
require procuring information outside the state, then, in addition	186
to the fee established under division (C) of this section, the	187
superintendent may require the applicant to pay any of the actual	188
expenses incurred by the division to conduct such an	189
investigation, provided that the superintendent shall assess the	190
applicant a total no greater than one thousand dollars for such	191
expenses. The superintendent may require the applicant to pay in	192
advance of the investigation, sufficient funds to cover the	193
estimated cost of the actual expenses. If the superintendent	194
requires the applicant to pay investigation expenses, the	195
superintendent shall provide to the applicant an itemized	196
statement of the actual expenses incurred by the division to	197
conduct the investigation.	198

(G)(H)(1) Except as otherwise provided in division (G)(H)(2)	199
of this section, a precious metals dealer licensed under this	200
section shall maintain a net worth of at least tenone hundred	201
thousand dollars, computed as required under division (B)(1) of	202
this section, for as long as the licensee holds a valid precious	203
metals dealer's license issued pursuant to this section.	204

(2) A licensee who obtains a surety bond under division	205
(B)(2) of this section is exempt from the requirement of division	206
(G)(H)(1) of this section, but shall maintain the bond for at	207
least two years after the date on which the licensee ceases to	208
conduct business in this state.	209

Sec. 4728.04.  (A) The application for a license under this	210
chapter shall state fully the name and address of the person, or	211
corporation, and of every member of the firm, partnership, or	212
association, authorized to do business thereunder, the name of the	213
individual responsible for the daily operation of the business,	214
and the location of the office or place of business in which the	215
business is conducted. In the case of a corporation, the	216
application also shall state the date and place of incorporation,	217
the name and address of the corporation's manager, the names and	218
addresses of corporate directors, and the name and address of the	219
agent, as provided in section 4728.03 of the Revised Code.	220

The holder of a precious metals dealer's license shall keep	221
the license posted in a conspicuous place in the office where	222
business is transacted. No licensee shall transact or solicit	223
business under any other name or location. Not more than one	224
office or place of business shall be maintained under the same	225
license, except as provided under division (C) of this section. In	226
case of removal, the licensee shall provide written notice in	227
advance to the division of financial institutions in the	228
department of commerce of a prospective change of address of a	229
business location. Upon approval by the superintendent of	230
financial institutions, the division shall issue a new license. If	231
the new location is outside the municipal corporation or county of	232
the original licensed location, the licensee shall pay an	233
additional license fee according to section 4728.03 of the Revised	234
Code.	235

(B) A person licensed under this chapter shall post a	236
conspicuous notice in its place of business visible to all	237
patrons, in a form and at places designated by rule of the	238
division, that the licensee has no right to retain goods stolen	239
from the true owner, and that the owner may recover the goods or	240
their value from the licensee in an action at law or, if the chief	241
or head of a local police department or the chief's or head's	242
representativelaw enforcement agency takes custody of the goods,	243
by release pursuant to section 2981.11 of the Revised Code.	244

(C)(1) The superintendent may issue to a person licensed	245
under this chapter or Chapter 4727. of the Revised Code a	246
temporary exhibition permit for a term that coincides with that of	247
the license of the licensee. A person issued a permit under this	248
division may engage in the business of purchasing articles made of	249
or containing gold, silver, platinum, or other precious metals or	250
jewels from the public at a bona fide auction, convention,	251
exhibition, fair, or show, the primary purpose of which is to	252
display, trade, and sell articles made of or containing precious	253
metals or jewels, for a period not to exceed seven days for any	254
one auction, convention, exhibition, fair, or show. The	255
superintendent shall not issue a permit to a licensee if the sole	256
purpose of the licensee's application is to buy precious metals or	257
jewels at a location other than that listed on the licensee's	258
license.	259

(2) The superintendent shall determine the application	260
procedures for and the form of the temporary exhibition permit	261
described in this division, provided that a temporary permit shall	262
state fully the name and permanent business address of the	263
licensee to whom it is issued.	264

(3) The holder of a temporary exhibition permit shall, when	265
participating in any auction, convention, fair, or show,	266
conspicuously display the holder's permit at the location at which	267
the holder transacts business.	268

(4) A permit holder who wishes to participate in an auction,	269
convention, exhibition, fair, or show shall, at least two weeks	270
prior to its scheduled opening, submit to the superintendent, or	271
and the chief or the head of the local police departmentlaw	272
enforcement agency with jurisdiction at the location of the event,	273
the holder's name, the location of the auction, convention,	274
exhibition, fair, or show, and the holder's permanent business	275
address as it appears on the holder's permit issued under division	276
(C)(2) of this section.	277

(5) All purchases of articles made of or containing gold,	278
silver, platinum, or other precious metals or jewels conducted	279
under a temporary exhibition permit are subject to sections	280
4728.06 to 4728.09, 4728.13, and 4728.99 of the Revised Code as if	281
made under a license.	282

Sec. 4728.05.  (A) The superintendent of financial	283
institutions may, either personally or by a person whom the	284
superintendent appoints for the purpose, if the superintendent	285
considers it advisable, investigate at least once a year the	286
business of every person licensed as a precious metals dealer	287
under this chapter, and of every person, partnership, and	288
corporation by whom or for which any purchase is made, whether the	289
person, partnership, or corporation acts, or claims to act, as	290
principal, agent, or broker, or under, or without the authority of	291
this chapter, and for. For that purpose, the superintendent shall	292
have free access to the books and papers thereofof the business,	293
person, partnership, or corporation and other sources of	294
information with regard to the business of the licensee or person	295
and whether the business has been or is being transacted in	296
accordance with this chapter. The superintendent and every	297
examiner may examine, under oath or affirmation, any person whose	298
testimony may relate to any business coming within this chapter.	299

(B) In making any investigation or conducting any hearing	300
pursuant to this section, the superintendent or a person	301
designated by the superintendent, at any time, may do any of the	302
following:	303

(1) Compel by subpoena the attendance of witnesses;

304

(2) Take depositions of witnesses residing without the state	305
in the manner provided for in civil actions;	306

(3) Pay witnesses the fees and mileage provided for under	307
section 119.094 of the Revised Code;	308

(4) Administer oaths;

309

(5) Compel by order or subpoena duces tecum the production of	310
all relevant books, records, accounts, and other documents and	311
examine such books, records, accounts, and other documents.	312

(C) If a person fails to comply with a subpoena or subpoena	313
duces tecum, the superintendent may apply to the court of common	314
pleas of Franklin county for an order compelling the person to	315
comply with the subpoena or subpoena duces tecum or, for failure	316
to do so, an order holding the person in contempt of court. The	317
superintendent, in accordance with section 4728.03 of the Revised	318
Code, may suspend or revoke the license of any precious metals	319
dealer who fails to comply with this division.	320

(D) In connection with any investigation under this section,	321
the superintendent may file an action in the court of common pleas	322
of Franklin county or the court of common pleas of the county in	323
which the person who is the subject of the investigation resides	324
to obtain an injunction, a temporary restraining order, or other	325
appropriate relief, if it appears to the superintendent that the	326
person is engaging in actions or threatening to engage in actions	327
in violation of this chapter.	328

(E) If in an investigation under this section the	329
superintendent determines that a person not licensed under this	330
chapter, or an employee of that person, has been or is engaged or	331
is threatening to engage in activities for which a license is	332
required under this chapter, the superintendent may issue an order	333
to that person requiring the person to show cause why the person	334
should not be subject to licensure under this chapter. If the	335
superintendent determines, after notice and a hearing conducted in	336
accordance with Chapter 119. of the Revised Code, that a person is	337
engaged in, or is threatening to engage in activities that	338
constitute a violation of this chapter, the superintendent may	339
issue a cease and desist order that describes the person and	340
activities that are subject to the order and may impose upon the	341
person a penalty of not less than onefive hundred nor more than	342
ten thousand dollars for a violation of this chapter. Any cease	343
and desist order and any penalty issued under this section are	344
enforceable in and may be appealed to a court of common pleas	345
pursuant to Chapter 119. of the Revised Code.	346

Sec. 4728.06. EveryExcept as provided in division (F) of	347
this section, every person licensed under this chapter shall keep	348
and use books and forms approved by the superintendent of	349
financial institutions, which shall disclose,to record	350
information about purchases. The forms and books shall be	351
intelligible, written in the English language, and used	352
exclusively for the purposes described in this section.	353

(A) The licensee shall record on a form approved by the	354
superintendent all of the following information at the time of	355
each purchase, a:	356

(1) A full and accurate description, including identifying	357
letters, features, or marks thereon, the name of the manufacturer,	358
and any serial and model numbers, of the articles purchased, with	359
the;	360

(2) The name, ageaddress, place of residence,and date of	361
birth of the seller;	362

(3) A valid driver's or commercial driver's license number,	363
military identification number, or other valid personal	364
identification, and a shortnumber of the seller;	365

(4) A physical description of the person of the seller;

366

(5) The date and time of the purchase;

367

(6) The purchase price. The licensee also shall write in the	368
book the name of the maker. The	369

(B) The licensee shall require a seller, on a form approved	370
by the superintendent, to sign a statement verifying that the	371
seller is the legal owner of the article or is the agent of the	372
legal owner authorized to sell the article to the licensee.	373

(C)(1) The licensee shall keep the booksrecords and forms in	374
numerical order at all times at the licensed location, open to the	375
inspection of the superintendent or chief of or head of theand	376
local police department, a police officer deputed by the chief or	377
head of police, or the chief executive officer of the political	378
subdivision thereoflaw enforcement agency that has jurisdiction	379
of the area where the business is located. Upon demand of any of	380
these officials, the licensee shall produce and show an article	381
thus listed and described which isany records, forms, or	382
purchases that are in the licensee's possession.	383

(2) The licensee shall keep all purchases at the licensee's	384
place of business. No purchased items shall be removed from the	385
place of business for the licensee's personal use or gain.	386

(3) The licensee shall keep a copy of each form used for a	387
purchase, at all times, in numerical order and shall account for	388
all form numbers.	389

(4) No licensee shall require a seller, when signing a form	390
described in divisions (A) and (B) of this section, to affix the	391
seller's signature to a blank or partially filled-out form.	392

(D)(1) The forms described in divisions (A) and (B) of this	393
section shall be identical and consecutively numbered, and each	394
shall contain two or more pages.	395

(2) One part of each form shall be detachable and, when	396
completed, shall serve as the statement to be given by the	397
licensee to the seller as provided in section 4728.061 of the	398
Revised Code. The remaining part of the form shall be retained in	399
the licensee's permanent records. The licensee shall account for	400
all forms.	401

(3) Each form shall contain the name under which the licensee	402
is registered with the superintendent and the complete address of	403
the place of business.	404

(E) Each licensee shall preserve the licensee's books, forms,	405
accounts, and records for at least two years after making the	406
final entry regarding any purchase of property recorded therein.	407

(F) Notwithstanding any other provision of this chapter, a	408
licensee may use other methods of recording data, keeping records,	409
and keeping books, such as electronic or computerized methods, in	410
lieu of the methods described in this section, provided that	411
written printouts or hard copies of the required data are readily	412
available in a form approved, in advance, by the superintendent.	413

Sec. 4728.061.  In accordance with division (D)(2) of section	414
4728.06 of the Revised Code, each person licensed under this	415
chapter shall give to a seller at the time of a purchase a	416
statement upon which shall be legibly written in ink, printed, or	417
typed all of the following:	418

(A) The name and address of the purchasing licensee;

419

(B) The purchase price;

420

(C) The time and date of the purchase;

421

(D) A full and accurate description of the articles sold,	422
including any serial or model numbers or identifying marks	423
thereon.	424

The licensee shall retain a copy of the statement for two	425
years from the date of the last entry of the purchase account.	426
Each statement shall be numbered and maintained consecutively,	427
commencing with the number "one," but the licensee may maintain	428
statements in a file.	429

Sec. 4728.07. (A) Each person licensed under Chapter 4728. of	430
the Revised Code, shall, every business day, make available to the	431
chief or the head of the local police department, on forms	432
furnished by the police department,law enforcement agency a full	433
description of all articles received by the licensee on the	434
business day immediately preceding, together with the number of	435
the receiptrecord or form issued.	436

(B) If the local law enforcement agency does not pick up or	437
make arrangements to receive the information described in division	438
(A) of this section, the licensee shall deliver the daily reports	439
to the agency within five business days after the day the record	440
or form was issued.	441

Sec. 4728.08.  No person licensed under Chapter 4728. of the	442
Revised Code shall purchase any articles from any minor, or from	443
any person known to be intoxicated or under the influence of a	444
controlled substance, from any person who is known or believed by	445
the licensee to be a thief, or a receiver of stolen property.	446

Sec. 4728.09.  (A) A person licensed under Chapter 4728. of	447
the Revised Code shall retain in this state any articles purchased	448
by himthe person until the expiration of fivefifteen days after	449
the date of purchase.	450

(B) If the chief or head of the local police departmentlaw	451
enforcement agency to whom the licensee made available the	452
information required by this chapter has probable cause to believe	453
that the article described therein is stolen property, hethe	454
agency shall notify the licensee in writing. Upon receipt of	455
notice, the licensee shall retain the article until the expiration	456
of thirty days after the day on which hethe licensee is first	457
required to make available the information required by this	458
section, unless the chief or the head of the local police	459
departmentagency notifies the licensee in writing that hethe	460
licensee is not required to retain the article until the	461
expiration.	462

(C) If the chief or the head of the local police department	463
law enforcement agency determines the identity of the true owner	464
of the allegedly stolen article, that has been purchased and held	465
by a licensee, and informs the licensee of the true owner's	466
identity:	467

(1) The licensee may restore the allegedly stolen article to	468
its true owner directly.	469

(2) The true owner may reimburse the licensee for thean	470
amount not exceeding that which the licensee paid for the	471
allegedly stolen article.	472

(3) The true owner may recover the article and reasonable	473
attorney fees from the licensee in an action at law.	474

(D) If it is determined that the true owner of the allegedly	475
stolen article, for whatever reason, chooses not to file a charge	476
against the person or persons responsible for the alleged theft,	477
the licensee may charge the true owner of the allegedly stolen	478
article thean amount not exceeding that which the licensee paid	479
for the allegedly stolen article.	480

Sec. 4728.10. (A) The superintendent of financial	481
institutions shall enforce this chapter, make all reasonable	482
effort to discover alleged violators, notify the proper	483
prosecuting officer whenever the superintendent has reasonable	484
grounds to believe that a violation has occurred, act as	485
complainant in the prosecution thereof, and aid officers to the	486
best of the superintendent's ability in prosecutions. The	487
superintendent shall employ deputies necessary to make the	488
investigations and inspections, and. The superintendent, pursuant	489
to Chapter 119. of the Revised Code, shall adopt reasonable rules,	490
including rules that define terms used in this chapter, for the	491
carrying out of this chapter, and otherwise perform the duties	492
imposed by this chapter.	493

(B) In order to enforce this chapter, the superintendent may	494
do all of the following:	495

(1) Issue a cease and desist order against any person the	496
superintendent reasonably suspects has violated, is currently	497
violating, or is about to violate the provisions of this chapter.	498
The superintendent may apply to a court of common pleas for an	499
order compelling a person to comply with any cease and desist	500
order or any subpoena issued by the superintendent.	501

(2) Obtain from the court of common pleas any form of	502
injunctive relief against any person that has violated, is	503
currently violating, or is reasonably suspected of being about to	504
violate the provisions of this chapter;	505

(3) Issue a subpoena to any person to compel the production	506
of any item, record, or writing, including an electronic writing;	507

(4) Issue a subpoena to compel any person to appear and	508
render testimony in regard to a violation of this chapter;	509

(5) Examine and investigate the business of any person the	510
superintendent reasonably suspects to be advertising, transacting,	511
or soliciting business as a precious metals dealer. This authority	512
includes the authority to examine and investigate the person's	513
business location and any books, records, writings, including	514
electronic writings, safes, files, or storage areas located in or	515
utilized by the business location. The superintendent may request	516
the attendance and assistance of the appropriate local law	517
enforcement agency or the state highway patrol during the	518
examination and investigation of the business.	519

Sec. 4728.11.  This chapter does not apply to any of the	520
following:	521

(A) Any purchase of an article that is made of or contains	522
gold, silver, platinum, or other precious metals or jewels and	523
jewelry of any description, including watches, if both the buyer	524
and seller, or the respective agents, brokers, or other	525
intermediaries of both the buyer and seller, deal in such articles	526
or otherwise by their respective occupations, or by their	527
respective avocations as collectors, speculators, or investors,	528
hold themselves out as having knowledge or skill peculiar to such	529
articles or the practices involved in their purchase or sale;	530

(B) Licensees who obtain licenses under sections 1321.01 to	531
1321.19 of the Revised Code or registrants who obtain certificates	532
of registration under sections 1321.51 to 1321.60 of the Revised	533
CodeAny person doing business under the laws of this state or the	534
United States relating to any broker-dealer, commodity futures	535
commission merchant, or commodity trading advisor or agent duly	536
registered and regulated by the division of securities under	537
Chapter 1707. of the Revised Code or the United States commodity	538
futures trading commission under 7 U.S.C. 1 et seq.;	539

(C) National banks, state banks, credit unions, or savings	540
and loan associations;	541

(D) The holder of a salvage motor vehicle dealer's license	542
under Chapter 4738. of the Revised Code who purchases or sells	543
precious metal which, in its original form, is a motor vehicle	544
component part, or a scrap metal processor subject to Chapter	545
4737. of the Revised Code;	546

(E) Any purchase of silverware or an article of jewelry made	547
of or containing gold, silver, platinum, or other precious metals	548
or jewels that is made by a person who complies with all of the	549
following:	550

(1) The person is engaged in the business of selling, at	551
retail, articles of jewelry and silverware;	552

(2) The person holds a valid vendor's license issued under	553
section 5739.17 of the Revised Code;	554

(3) The person maintains a fixed place of business in this	555
state at which the person regularly exhibits articles of jewelry	556
and silverware that are for sale at retailAny transactions	557
involving the sale or transfer of gold, silver, platinum, or other	558
precious metals or jewels and jewelry of any description,	559
including watches, by a wholesale jeweler to a retail jeweler or	560
licensed dealer;	561

(4) The person establishes to the satisfaction of the	562
superintendent of financial institutions or the chief or head of	563
the local police department, upon their request, that the person's	564
purchases of silverware and articles of jewelry that are made of	565
or contain gold, silver, platinum, or other precious metals or	566
jewels are incidental to the person's primary business as	567
described in division (E)(1) of this section. Such purchases are	568
"incidental" if:	569

(a) In the case of a person who has been in business for less	570
than one year, the average monthly value of the person's purchases	571
of jewelry from the public represents less than twenty-five per	572
cent of the person's total inventory of articles of jewelry held	573
for sale at retail to the public, as computed under section	574
5711.15 of the Revised Code;	575

(b) In the case of a person who has been in business for at	576
least one year, the total value of the person's purchases of	577
jewelry from the public represents less than twenty-five per cent	578
of the person's total retail sales of articles of jewelry to the	579
public during the immediately preceding year;	580

(c) The purchases are of items described in division (F) of	581
this section.	582

(F) Any purchase of coins, hallmark bars, registered ingots,	583
and other items as numismatic objects, and not for their content	584
of precious metals.	585

(G) Any purchase made under the supervision of a probate	586
court from the estate of a decedent as provided under section	587
2113.40 of the Revised Code.;	588

(H)(G) Except as specified in division (B) of section 4728.02	589
of the Revised Code, any person licensed under Chapter 4727. of	590
the Revised Code.	591

Sec. 4728.12.  (A) A person exempt from licensing under	592
division (E) or (F) of section 4728.11 of the Revised Code, and	593
who in the ordinary course of the person's business obtains	594
ownership by purchase of articles made of or containing gold,	595
silver, platinum, or other precious metals or jewels and jewelry	596
of any description, including watches, from the public, shall	597
maintain at each business location for at least the twelve months	598
immediately succeeding any such transaction a record that shall	599
include the following:	600

(1) The date and time of the transactionpurchase;

601

(2) The name and residential, address, and date of birth of	602
the seller and the means of identification used to establish the	603
seller's identity;	604

(3) A physical description of the seller;

605

(4) A complete and accurate description of the purchased	606
article, including any brand names, initialsthe name of the	607
manufacturer, any serial and model numbers, or otherany	608
identifying letters or marks, monograms, or symbols on the article	609
and any identifying features;	610

(5) The price paid for each article and the means of payment;

611

(6) A valid driver's license number, military identification	612
number, or other valid personal identification number.	613

As used in this divisionsection, "purchase" does not include	614
obtaining title to an article that is accepted as a trade-in by a	615
person exempt from licensing under division (E) or (F) of section	616
4728.11 of the Revised Code when the transaction involves a retail	617
sale of an article of equal or greater value and the value of the	618
trade-in is used as all or a portion of the purchase price, nor	619
does "purchase" include any purchase made under the supervision of	620
a probate court as provided under section 2113.40 of the Revised	621
Code.	622

(B) No person exempt from licensing under division (E) or (F)	623
of section 4728.11 of the Revised Codeto whom division (A) of	624
this section applies shall purchase any article that is made of or	625
contains gold, silver, platinum, or other precious metals or	626
jewels and jewelry of any description, including watches, from any	627
individual whom the person knows or has reason to believe is under	628
eighteen years of age.	629

(C) Within sixty days after opening a new business location,	630
anyAny person exempt from licensing under division (E) or (F) of	631
section 4728.11 of the Revised Codeto whom division (A) of this	632
section applies shall notify in writing the chief or head of the	633
police department having local law enforcement agency having	634
jurisdiction in the place where the business is located of the	635
location of the records the person maintains pursuant to division	636
(A) of this section. These records shall be available during	637
normal business hours for inspection by the superintendent of	638
financial institutions or the superintendent's designee, or by the	639
chief or head of the local police department or the chief's or	640
head's designeelaw enforcement agency.	641

Sec. 4728.13.  (A) No person, firm, partnership, corporation,	642
or associationlicensed under this chapter, and no agent, officer,	643
or employee thereof, shall violate this chapter. The division	644

(B) The superintendent of financial institutions upon amay	645
do any of the following:	646

(1) Upon the criminal conviction shallof a licensee or any	647
employee, manager, officer, director, shareholder, member, or	648
partner of a licensee for a violation of this chapter, suspend the	649
license of the licensee without a prior hearing to protect the	650
public interest and subsequently revoke anythe license	651
theretofore issued to the person, firm, partnership, corporation,	652
or association. Thein accordance with the provisions of Chapter	653
119. of the Revised Code.	654

(2) Upon the criminal conviction of a licensee or any	655
employee, manager, officer, director, shareholder, member, or	656
partner of the licensee for the violation of any provision of	657
Title XXIX of the Revised Code or under federal law for theft,	658
receiving stolen property, or money laundering, suspend the	659
license of the licensee without a prior hearing to protect the	660
public interest and subsequently revoke the license of the	661
licensee in accordance with the provisions of Chapter 119. of the	662
Revised Code;	663

(3) Upon the criminal conviction of a licensee for the	664
violation of any provision of Title XXIX of the Revised Code or	665
under federal law for a violation other than theft, receiving	666
stolen property, or money laundering, assess a penalty against the	667
licensee or revoke or suspend the license of the licensee in	668
accordance with the provisions of Chapter 119. of the Revised	669
Code.	670

(C) The division alsoof financial institutions may revoke or	671
suspend the license of any licensee in accordance with division	672
(E) of section 4728.03 of the Revised Code upon a criminal	673
conviction of the licensee for any felony offense or crime	674
involving moral turpitude.	675

(B)(D) No person shall obstruct or refuse to permit any	676
investigation conducted under this chapter by the superintendent	677
of financial institutions, a person acting on behalf of an agency	678
or a political subdivision of this state, or a law enforcement	679
officer. All articles purchased by a person licensed under this	680
chapter shall be made promptly available for inspection by these	681
officials.	682

(C)(E) In any proceeding or action brought under this	683
chapter, the burden of proving an exemption from a requirement of	684
this chapter falls on the person claiming the benefit of the	685
exemption.	686

Sec. 4728.14.  Any person who is injured by the failure of a	687
person who is engaged in the business of purchasing articles that	688
are made of or contain gold, silver, platinum, or other precious	689
metals or jewels and jewelry of any description, including	690
watches, to comply with this chapter may commence a civil action	691
to recover compensatory damages from such person. In any action	692
under this section, the court may award punitive damages or	693
reasonable attorney's fees to a prevailing plaintiff.	694

Sec.  4728.16.  (A) Every sale, transfer, or hypothecation of	695
any stock, security, membership, partnership, or other equitable,	696
beneficial, or ownership interest in a person licensed as a	697
precious metals dealer, in an amount representing a ten per cent	698
or greater equitable, membership, partnership, beneficial, or	699
other ownership interest in the licensee, must be approved in	700
writing by the superintendent of financial institutions prior to	701
the sale, transfer, or hypothecation of the interest in the	702
licensee.	703

(B) Every person acquiring or receiving an interest as	704
described in division (A) of this section is subject to the	705
licensing requirements of this chapter as if the person were a new	706
and separate license applicant.	707

Sec. 4728.17.  (A) A person licensed as a precious metals	708
dealer under this chapter shall state the license number issued by	709
the superintendent of financial institutions in all	710
advertisements, offers, and solicitations.	711

(B) No person not licensed under this chapter may advertise	712
as a precious metals dealer.	713

Sec. 4728.18.  Any precious metals dealer who purchases	714
precious metals from the public shall have and use a national type	715
evaluation program certified, legal for trade scale, which shall	716
be inspected and certified annually by the auditor of the county	717
in which the person's business is located in accordance with	718
section 319.55 of the Revised Code.	719

Sec. 4728.99. (A) Whoever violates Chapter 4728.sections	720
4728.03 to 4728.14 or sections 4728.16 to 4728.18 of the Revised	721
Code is guilty of a misdemeanor of the firstthird degree on a	722
first offense and a felonymisdemeanor of the fifthsecond degree	723
on each subsequent offense.	724

(B) Whoever violates section 4728.02 of the Revised Code is	725
guilty of a felony of the fifth degree.	726

Section 2.  That existing sections 4728.01, 4728.02, 4728.03,	727
4728.04, 4728.05, 4728.06, 4728.07, 4728.08, 4728.09, 4728.10,	728
4728.11, 4728.12, 4728.13, 4728.14, and 4728.99 of the Revised	729
Code are hereby repealed.	730