Florida Senate - 2009                        COMMITTEE AMENDMENT
       Bill No. SB 2700
       
       
       
       
       
       
                                Barcode 408484                          
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: FAV            .                                
                  03/25/2009           .                                
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       The Committee on Commerce (Crist) recommended the following:
       
    1         Senate Substitute for Amendment (371856) (with title
    2  amendment)
    3  
    4         Delete everything after the enacting clause
    5  and insert:
    6         Section 1. Part III of chapter 538, Florida Statutes,
    7  consisting of sections 538.31, 538.32, 538.33, 538.34, 538.35,
    8  538.36, and 538.37 is created to read:
    9                              Part III                             
   10             MAIL-IN SECONDHAND PRECIOUS METALS DEALERS            
   11         538.31Definitions; applicability.--
   12         (1)As used in this part, the term:
   13         (a)“Department” means the Department of Revenue.
   14         (b)“Jewelry” means a personal ornament that contains
   15  precious metals and may contain gemstones.
   16         (c)"Mail-in secondhand precious metals dealer" means any
   17  person or entity that:
   18         1.Conducts business within this state and that contracts
   19  with other persons or entities to buy precious metals or jewelry
   20  through an Internet website, the United States mail, or
   21  telemarketing, or:
   22         2.Conducts business within this state and regularly
   23  engages in the business of purchasing jewelry or precious metals
   24  through the mail or Internet-based transactions.
   25         (d)“Precious metals” means any item containing any gold,
   26  silver, or platinum, or any combination thereof.
   27         (e)“Seller” means any person or entity offering precious
   28  metals or jewelry for purchase, which belong solely to that
   29  person or entity and has absolute authority to sell such goods.
   30         (f)“Transaction” includes any event relating to the
   31  purchase of secondhand precious metals or jewelry by a mail-in
   32  secondhand precious metals dealer.
   33         (2)This part does not apply to:
   34         (a)Any person or entity that is available to the public
   35  for walk-in business and regulated under Part I.
   36         (b)The purchase, consignment, or trade of secondhand
   37  precious metals or jewelry with another mail-in secondhand
   38  precious metals dealer or secondhand dealer regulated under Part
   39  I.
   40         538.32Registration, transaction, and recordkeeping
   41  requirements; penalties.--
   42         (1)A mail-in secondhand precious metals dealer may not
   43  conduct business under this part without registering with the
   44  department and complying with all registration regulations as
   45  set forth in s. 538.09.
   46         (2)A mail-in secondhand precious metals dealer may not
   47  remit payment to a seller unless the seller has provided the
   48  following information:
   49         (a)The seller’s name, address, telephone number, and e
   50  mail address, if available.
   51         (b)The seller’s driver’s license number and issuing state
   52  or other government-issued identification number.
   53         (c)A sworn statement made by the seller that the driver's
   54  license number or other government-issued identification number
   55  and other identifying information provided by the seller is true
   56  and correct and that the seller is the lawful owner of the goods
   57  with absolute authority to sell the goods. The statement must
   58  include the following language: "I declare under penalty of
   59  perjury that the foregoing is true and correct."
   60         (3)For every transaction, the secondhand dealer must keep
   61  a record of the following:
   62         (a)A complete and accurate description of the seller’s
   63  goods, including:
   64         1.Precious metal type, or, if jewelry, the type of
   65  jewelry.
   66         2.Any other unique identifying marks, numbers, or letters.
   67  The description must be in an electronic format agreed upon by
   68  the dealer and the appropriate law enforcement agency.
   69         (b)The date that the seller’s goods were received by the
   70  mail-in secondhand precious metals dealer.
   71  
   72         This information must be provided to the appropriate law
   73  enforcement agency within 24 hours after entering into the
   74  contract unless other arrangements are made between the business
   75  and the law enforcement agency.
   76         (4)The mail-in secondhand precious metals dealer must
   77  maintain, for a period of not less than 2 years, all information
   78  under subsections (2) and (3) and all records of any transaction
   79  between the dealer and seller in a form that is easily
   80  retrievable upon request by a law enforcement agency.
   81         (5)The mail-in secondhand precious metals dealer must
   82  provide the appropriate law enforcement agency with an
   83  electronic copy of the name, address, phone number, driver's
   84  license number, or government-issued identification number, and
   85  issuing state of the person from whom the dealer purchased or
   86  acquired the precious metals or jewelry.
   87         538.33Tendering payment.--
   88         (1)Any payment by the mail-in secondhand precious metals
   89  dealer resulting from the sale, purchase, consignment, or trade
   90  of precious metals must be made to the person or entity by check
   91  to a lawful bank account or via a money services business
   92  license under part II of chapter 560.
   93         538.34Inspection of records and premises.-- The dealer
   94  must allow a law enforcement agency to inspect its business
   95  records, inventory, and premises during normal business hours to
   96  ensure compliance with this part.
   97         538.35Holding period.--
   98         (1)The dealer may not sell, barter, exchange, alter,
   99  adulterate, use, or in any way dispose of any goods purchased
  100  from a seller within 10 calendar days of the date payment is
  101  issued for acquisition of the goods.
  102         (2)Records of the sale, purchase, consignment, or trade of
  103  precious metals or jewelry must be maintained by the business
  104  for at least 2 years after the date of the transaction.
  105         538.36Acts and practices prohibited; penalties.--
  106         (1)Any dealer not registered with the department as a
  107  mail-in secondhand precious metals dealer, or who fails to
  108  comply with this part, commits a felony of the third degree for
  109  each completed transaction, punishable as provided in s.
  110  775.082, s. 775.083, or s. 775.084. The officers and
  111  corporation, if convicted or found guilty of, or pled nolo
  112  contendere, may not operate thereafter for 1 year as a mail-in
  113  secondhand precious metals dealer within the state of Florida.
  114         (2)Any person who knowingly gives false personal
  115  identifying information to the dealer, who provides a driver’s
  116  license number that does not belong to him or her, or who makes
  117  any false statement with respect to his or her age or ownership
  118  of goods, and who receives payment from the dealer commits:
  119         (a)if the value of the money received is less than
  120  $300.00, a felony of the third degree, punishable as provided in
  121  s. 775.082, s. 775.083, or s. 775.084.
  122         (b)if the value of the money received is $300.00 or more,
  123  a felony of the second degree, punishable as provided in s.
  124  775.082, s. 775.083, or s. 775.084.
  125         (3)The penalty provisions of s. 538.07 apply to any dealer
  126  who knowingly violates any provision of this part.
  127         538.37Powers and duties of department.--
  128         (1)The department shall have all authority provided under
  129  s. 538.11 in regard to registrations issued under this part.
  130         Section 2.This act shall take effect October 1, 2009.
  131  
  132  
  133  
  134  ================= T I T L E  A M E N D M E N T ================
  135         And the title is amended as follows:
  136         Delete everything before the enacting clause
  137  and insert:
  138                        A bill to be entitled                      
  139         An act relating to mail-in secondhand precious metals
  140  dealers; creating Part III of chapter 538, F.S.; providing a
  141  short title; providing definitions; providing exceptions;
  142  providing for registration; providing for recordkeeping;
  143  providing for the tendering of payments; providing for the
  144  inspection of records and business premises by law enforcement;
  145  providing for a holding period; prohibiting certain acts;
  146  providing penalties; providing for powers and duties of the
  147  department; and providing an effective date.
  148