Senate Commerce Committee Statement to Senate, No. 2202 — State of New Jersey (March 11, 2021)

Summary

A Senate Commerce Committee statement to the Senate on Senate Bill No. 2202, State of New Jersey, dated March 11, 2021, reporting the bill favorably. The bill aligns recordkeeping rules for precious metal purchases with those for secondhand jewelry, requiring buyers to verify a seller's identity with a driver's license or other government-issued photograph identification. It extends record retention for precious metal purchases to five years and the period the metals are kept in purchased form to 10 days. A subsequent violation would be a petty disorderly persons offense, punishable by a fine of up to $500, imprisonment for up to 30 days, or both, plus a mandatory civil penalty of not less than $1,000 or more than $2,500.

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SENATE COMMERCE COMMITTEE

STATEMENT TO

SENATE, No.
2202

STATE
OF NEW JERSEY

DATED: MARCH
11, 2021

The
Senate Commerce Committee reports favorably Senate Bill No. 2202.

This bill modifies recordkeeping laws related to the
sale of precious metals to make them consistent with the requirements for
secondhand jewelry transactions, and increases the penalties imposed on
secondhand jewelry and precious metal buyers who violate certain recordkeeping
laws.

Under current law, the retention periods for precious
metal transactions are shorter than those required for jewelry retailers,
wholesalers, and smelters who purchase used or secondhand jewelry. Currently,
buyers are required to retain detailed records of precious metal transactions
for a period of one year and are required to retain the precious metals in the
form they were purchased for a period of two days. A person who violates these
provisions is subject to a mandatory penalty of between $500 and $1,000.

Current law requires jewelry retailers, wholesalers,
and smelters to maintain detailed records of all secondhand jewelry they
purchase for five years, and deliver a copy of these records to the local
police department each week. The jewelry may not be sold until 10 business
days after the records are delivered. A person who violates these
record-keeping provisions is presumed to have the requisite knowledge or belief
for a violation of N.J.S.2C:20-7, which prohibits the receipt of stolen
property. Currently, there is no specific penalty for violating these
recordkeeping requirements when knowledge of the receipt of stolen property
under N.J.S.2C:20-7 is not established.

The bill requires precious metal buyers to verify the
identity of a seller by examining a driver’s license or other government-issued
form of photograph identification, as required for used and secondhand jewelry
purchases. In addition, the bill extends the period of time that records for
precious metal purchases are required to be retained to five years, and the
period of time precious metals are to be retained in the form in which they
were purchased to 10 days. The bill further provides that the retention period
for precious metals in the form of used and secondhand jewelry begins following
the delivery of the record of purchase to the local police department, as
required for used or secondhand jewelry, unless a municipal ordinance adopted
prior to January 16, 2010 provides for a longer retention period.

The bill also increases the penalties for a violation
of the recordkeeping requirements for precious metal purchases. Under the

bill, the same mandatory civil penalty would continue to be
imposed on first-time offenders. However, a subsequent violation would
constitute a petty disorderly persons offense, which is punishable by a fine of
up to $500, imprisonment for up to 30 days, or both. Subsequent violations
also would be punishable by an additional mandatory civil penalty of not less
than $1,000 or more than $2,500. These penalties are in addition to any other
fines or penalties that may be imposed under the State’s criminal code.

The bill also establishes penalties for violating the
recordkeeping requirements for used and secondhand jewelry, which are
consistent with the increased penalties established under the bill for precious
metal transactions.

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