Chapter 5.35
PRECIOUS METAL DEALERS
Sections:
5.35.010 Secondhand precious metal dealers – Definitions.
5.35.030 Application requirements.
5.35.060 Purchasing regulations.
5.35.065 Reporting requirements.
5.35.070 Resale of articles purchased.
5.35.010 Secondhand precious metal dealers – Definitions.
For the purpose of this chapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning:
“Dealer” means any person who is engaged in the business of purchasing or offering, by advertisement or otherwise, to buy goods as part of their business enterprise.
“Itinerant dealer” means any dealer as defined herein who has engaged or intends to engage in a temporary or transient business for profit conducted from a shop, room, hotel or motel room, or other premises for a time period of less than one year.
“Resident dealer” means any dealer as defined herein who has engaged or intends to engage in a permanent business for profit conducted from a fixed location in the City, for a period of time of one year or more.
“Secondhand precious metals and gems” means any article, item, or goods, including coins, composed in whole or in part of gold, silver, platinum, diamonds, or other precious stones or metals, and which was previously used by any person for its manufactured purpose. [Ord. G-81-35, passed 10-27-81. 1982 Code § 115.01; 1983 Code § 11.115.01.]
5.35.020 License required.
No person shall act as a secondhand precious metal and gem dealer without first obtaining a license therefor, as hereafter provided. [Ord. G-81-35, passed 10-27-81. 1982 Code § 115.02; 1983 Code § 11.115.02.]
5.35.030 Application requirements.
(A) A completed application form shall be submitted to the office of the City Controller by the applicant at least five days prior to the issuance of the license.
(B) Each applicant for a license shall submit the following information on the application form:
(1) The name of the applicant, including any previous names or aliases;
(2) The name, local address, principal business address, physical description, and recent photograph of the individual who is applying for a license on behalf of the applicant, if the applicant is not an individual;
(3) The local business address and principal business address of the applicant;
(4) If the applicant is a partnership, the names and addresses of the partners;
(5) If the applicant is a corporation or unincorporated association, the names and addresses of the Board of Directors and the principal officers;
(6) If the applicant is an individual, the applicant shall provide a recent photograph, a physical description, and a statement as to whether the applicant has been convicted of a crime; and if so, the nature of the offense and the punishment assessed therefor;
(7) The applicant, or the applicant’s representative if the applicant is not an individual, shall allow himself to be fingerprinted and such fingerprints shall be made a part of the application. Failure to cooperate in the fingerprint procedure shall be cause for denial of the license;
(8) If the applicant has, within the last 18 months, as an owner, operator, partner, agent, or employee, been engaged in the purchase of precious metals or gems, the applicant shall provide the name and address of the entity with which he was associated. If the entity with which the applicant was associated conducted business in more than one location, the applicant shall provide the addresses of these locations.
(C) If the applicant fails or refuses to provide information required in the application form, the failure or refusal shall be sufficient cause to deny the license. [Ord. G-81-35, passed 10-27-81. 1982 Code § 115.03; 1983 Code § 11.115.03.]
5.35.040 Annual license fee.
(A) There shall be an annual license fee of $50.00 imposed upon resident dealers. Licenses for resident dealers will be dated as of January 1st and will expire on December 31st of each year.
(B) There shall be a daily license fee of $50.00 on the first day and $25.00 per day thereafter imposed on itinerant dealers, up to a maximum annual fee of $1,500. [Ord. G-2012-10, passed 6-26-12; Ord. G-81-35, passed 10-27-81. 1982 Code § 115.04; 1983 Code § 11.115.04.]
5.35.050 Bond required.
(A) No person shall be issued a license under this chapter, until such person has provided a bond payable to the City in the amount of $1,000.
(B) Resident dealers may post a surety bond payable to the City in the amount of $1,000 and nonresident dealers shall provide a cash bond of $1,000 payable to the City. [Ord. G-82-10, passed 3-15-82; Ord. G-81-35, passed 10-27-81. 1982 Code § 115.05; 1983 Code § 11.115.05.]
5.35.060 Purchasing regulations.
(A) A secondhand precious metal and gem dealer shall not buy goods from a minor (person under 18 years of age) without the written consent of a parent or guardian.
(B) A secondhand precious metal and gem dealer shall require picture identification from the seller prior to making payment to the seller. A State driver’s license or State-issued I.D. shall be required.
(C) The secondhand precious metal and gem dealer shall at the time of making the purchase photocopy or photograph the seller’s I.D. and require the signature and right thumbprint of the seller on the purchase card maintained by the licensee. If the seller does not have a right thumb, any other existing finger may be used. However, a clear print must be obtained. A secondhand precious metal and gem dealer shall maintain the records required in this chapter for a period of one year. [Ord. G-2012-10, passed 6-26-12.]
5.35.065 Reporting requirements.
A person engaged in the business of secondhand precious metal and gem dealer shall report to the Evansville Police Department, by noon of the next business day, the following information:
(A) Name, address, date of birth, race, sex, and driver’s license or State identification number of the person from whom the item is purchased;
(B) Date and time of the transaction;
(C) A full description of the item including brand name, model number, serial number, and engravings, styles, colors, type of metal or markings;
(D) A separate report shall be made for each item purchased;
(E) A good quality photograph of all jewelry or coins will be made and furnished to the Police Department.
The information required above shall be furnished in a digital format provided by the Evansville Police Department. The items must be held at least 10 business days from the reporting date prior to offering the items for sale or altering, destroying or melting the items. [Ord. G-2012-10, passed 6-26-12.]
5.35.070 Resale of articles purchased.
Secondhand precious metals and gems purchased by a secondhand precious metal dealer and gem dealer shall not be resold or removed from the place of business of the secondhand precious metal and gem dealer for a period of 10 business days after a copy of the purchase report has been delivered to the office of the Chief of Police, or the designee of the Chief of Police. [Ord. G-2012-10, passed 6-26-12; Ord. G-81-35, passed 10-27-81. 1982 Code § 115.07; 1983 Code § 11.115.07.]
5.35.080 Exemptions.
(A) This chapter shall not apply to persons who are duly licensed as a pawnbroker by the City.
(B) This chapter shall not apply to persons who are duly authorized to participate in a show or exhibition of precious metals or gems sponsored by a not-for-profit organization which has purchased a not-for-profit “precious metals or gems exhibition or show license” from the office of the City Controller and agrees to the terms thereof.
(1) The fee for the “not-for-profit precious metals or gems exhibition or show license” shall be $25.00 per day or for any part thereof.
(2) As a condition of granting this license, the licensee shall agree to monitor and regulate the participants of its show or exhibition and supply to the office of the City Controller:
(a) The name and address of each participant;
(b) The name and address of each person authorized to buy or sell precious metals or gems on behalf of each participant during the show or exhibition; and
(c) A general description of the type of goods each participant is in the business of buying or selling. [Ord. G-83-16, passed 4-4-83; Ord. G-81-35, passed 10-27-81. 1982 Code § 115.08; 1983 Code § 11.115.08.]
5.35.090 Fines and penalties.
Any person who violates this chapter shall be subject to the following fines:
(A) Operating as a Secondhand Precious Metal Dealer without a License.
|
First offense |
$500.00 |
|
Second offense within any 12-month period |
$1,000.00 |
|
Third offense, or thereafter, within any 12-month period |
$1,500.00 |
(B) Failure to Provide Complete Reports in a Timely Manner.
|
First offense |
$50.00 |
|
Second offense within any 12-month period |
$100.00 |
|
Third offense, or thereafter, within any 12-month period |
$250.00 |
(C) In addition to the fines above, the Board of Public Safety may refuse to license, suspend a license, or revoke a license, following a hearing, to any business that violates the requirements of this chapter. [Ord. G-2012-10, passed 6-26-12.]