Chapter 9.09
PRECIOUS METALS AND GEM DEALERS – PENALTIES AND ENFORCEMENT
Sections:
9.09.040 Reporting and retention period.
9.09.010 Purpose – Intent.
The purpose of this chapter is to provide regulations for certain business activities which present a heightened risk of concealing criminal behavior involving the theft of property and its possible resale. These risks are omnipresent despite the best efforts of legitimate dealers in the second hand market because of the large volume of goods and materials that are processed in such businesses without systematic identification of goods and/or persons subject to criminal prosecution. This chapter is intended to reduce this type of criminal activity by providing timely police awareness of such business transactions with an opportunity for victims of theft to reclaim their property before they are resold and to provide a higher possibility of recovery. [Ord. 2013-04 § 2 (Exh. A)].
9.09.020 Definitions.
“Item of precious metal” means an item that consists of or incorporates gold in eight karat or greater purity, silver, platinum or palladium. “Item of precious metal” does not include dental gold, unrefined metal ore, an electronic product, any part of a mechanical system on a motor vehicle, gold or silver coins or generic bullion.
“Precious metals second hand dealer” means the person engaged in precious metals second hand dealing and does not include: a manufacturer of items of precious metal; a person engaged in commercial or industrial scrap metal operations; a person primarily engaged in business through the Internet; a motor vehicle dealer holding a certificate issued under ORS 822.020 or a motor vehicle dismantler holding a certificate issued under ORS 822.110; or a person primarily engaged in purchasing for sale newly manufactured items of precious metal. The person is deemed to be exempt from this chapter if the person’s inventory of items for resale consists exclusively of (1) newly manufactured items of precious metal acquired from a manufacturer, or (2) such newly manufactured items and used items of precious metal acquired for trade in value as a part of retail sales activity of mainly newly manufactured items of precious metal by the person.
“Precious metals second hand dealing” means soliciting, receiving, purchasing, trading or accepting delivery of items of precious metal from individuals in return for money or other consideration.
“Seller” means the other party to a transaction with the precious metals second hand dealer.
“Temporary precious metals second hand dealer” means a precious metals second hand dealer who conducts operations at one or more locations for no more than five consecutive days at any one location.
“Transaction” means the purchase, consignment, bailment, barter or trade of one or more items of precious metal by a precious metals second hand dealer from an individual who is not engaged in the business of selling newly manufactured items of precious metal. Transaction does not include gifts or other transactions of property unsupported by consideration or business-to-business purchases or other transfers. [Ord. 2013-04 § 2 (Exh. A)].
9.09.030 Records.
A. A precious metals second hand dealer within the city of Eagle Point shall maintain the following records with respect to each transaction conducted by the dealer:
1. The full name, date of birth, current telephone number, current address and signature of the seller;
2. The type and identification number of a currently valid government-issued photo identification that has been issued to the seller;
3. A physical description of the seller; and
4. A digital photograph of each item of precious metal that is the subject of the transaction.
B. A precious metals second hand dealer within the city of Eagle Point shall:
1. Maintain the records described in subsection A of this section for a period of at least one year after the date of the transaction; and
2. Maintain the records at the location at which the dealer is engaged in precious metals second hand dealing and allow inspection of the records by law enforcement officers upon a request made during regular business hours; or if the dealer is a temporary precious metals second hand dealer, maintain the records, or electronic copies of the records, at the current location where the dealer is engaged in precious metals second hand dealing and allow inspection of the records or electronic copies by law enforcement officers upon request made during regular business hours. [Ord. 2013-04 § 2 (Exh. A)].
9.09.040 Reporting and retention period.
All precious metals second hand dealers shall utilize the Leadsonline.com electronic reporting system to make an electronic report. The report shall be a full, true and complete report of all articles, wares, merchandise or things acquired in the transaction. The dealer shall report the sale within 24 hours, excluding weekends.
A precious metals second hand dealer shall provide copies of records described in this chapter if requested by law enforcement officers.
A precious metals second hand dealer in the city of Eagle Point shall retain any item of precious metal acquired in a transaction for a period of seven days after the date of the transaction before the dealer may dispose of the item. The dealer shall keep items of precious metal subject to retention under this section segregated from other items, but at the location where the transaction occurred. The dealer shall allow inspection of items of precious metal subject to retention under this section if requested by law enforcement officers. Notwithstanding the foregoing, a temporary precious metals second hand dealer may retain items subject to retention at a location of a dealer’s choosing within the city of Eagle Point but must provide an item of precious metal to a requesting law enforcement officer within 24 hours of the officer’s request for the item. Any cost incurred in providing a law enforcement officer with a requested item under this section shall be borne by the dealer. [Ord. 2013-04 § 2 (Exh. A)].
9.09.050 Penalty.
A. Whoever violates or fails to comply with any of the provisions of this chapter shall be subject to a fine of $500.00 for a first violation.
B. For a second violation, a person and/or entity shall be fined not more than $1,000. In addition, for a second violation, the city administrator or his or her designee may suspend the precious metals second hand dealer’s business license for a period not to exceed 30 days.
C. For a subsequent violation, a person and/or entity shall be fined not more than $1,000 and, in addition, the city administrator or his or her designee may suspend the second hand precious metals dealer’s business license for a period not to exceed six months.
D. All dealers subject to this chapter are responsible for the acts of their employees. Any violation of this chapter by any employee shall be imputed to the employer and/or dealer. The employer and/or dealer may suffer any of the penalties provided in this chapter as a result of the violation by an employee. [Ord. 2013-04 § 2 (Exh. A)].