Connecticut 2010 Regular Session

Connecticut House Bill HB05472 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	General Assembly Raised Bill No. 5472
2	2	February Session, 2010 LCO No. 2035
3	3	02035_______JUD
4	4	Referred to Committee on Judiciary
5	5	Introduced by:
6	6	(JUD)
7	7
8	8	General Assembly
9	9
10	10	Raised Bill No. 5472
11	11
12	12	February Session, 2010
13	13
14	14	LCO No. 2035
15	15
16	16	02035_______JUD
17	17
18	18	Referred to Committee on Judiciary
19	19
20	20	Introduced by:
21	21
22	22	(JUD)
23	23
24	24	AN ACT CONCERNING PAWNBROKERS, PRECIOUS METAL DEALERS AND SECOND-HAND DEALERS.
25	25
26	26	Be it enacted by the Senate and House of Representatives in General Assembly convened:
27	27
28	28	Section 1. (NEW) (Effective July 1, 2010) As used in this section and sections 21-39 to 21-47, inclusive, of the general statutes, as amended by this act:
29	29
30	30	(1) "Pawnbroker" means a person who is engaged in the business of loaning money on the deposit or pledge of wearing apparel, jewelry, ornaments, household goods or other personal property or purchasing such property on condition of selling the same back again at a stipulated price;
31	31
32	32	(2) "Precious metals dealer" means a person who is engaged in the business of purchasing gold or gold-plated ware, silver or silver-plated ware, platinum ware, watches, jewelry, precious stones or coins, other than a person in the business of selling such items to be resold at retail or selling raw materials to be manufactured into suitable forms for use by consumers whose primary place of business is located in this state;
33	33
34	34	(3) "Second-hand dealer" means a person who is engaged in the business of purchasing personal property of any type from a person who is not a wholesaler for the purpose of reselling or exchanging such property, other than an antiques dealer, art dealer, coin and stamp dealer, precious metals dealer, pawnbroker, consignment shop operator, special collectibles dealer, musical instrument dealer, used book dealer, dealer in motor vehicles as defined in chapter 246 of the general statutes, auctioneer as defined in chapter 403 of the general statutes, junk dealer as defined in chapter 405 of the general statutes, scrap metal processor as defined in section 14-67w of the general statutes, recycling facility as defined in section 22a-207 of the general statutes, or bona fide charitable or religious corporation;
35	35
36	36	(4) "Antiques dealer" means a person who is primarily engaged in the business of buying and selling items collected or desirable due to age, rarity, condition or some other unique feature;
37	37
38	38	(5) "Art dealer" means a person who is primarily engaged in the business of buying and selling illustrative and decorative paintings, drawings, photographs, prints, sculptures or other works in the graphic or plastic arts, or decorative or artistic objects;
39	39
40	40	(6) "Used book dealer" means a person who is primarily engaged in the business of buying and selling books previously sold at retail from persons other than a publisher or wholesaler;
41	41
42	42	(7) "Coin and stamp dealer" means a person who is primarily engaged in the business of buying and selling coins, stamps, currency or rare documents collected or desirable due to age, rarity, condition or some other unique feature;
43	43
44	44	(8) "Consignment shop operator" means a person who is primarily engaged in the business of selling goods as the agent of another person who has placed such goods in the physical possession of the agent when such other person has not been paid for such goods, retains legal title to such goods and bears the risk of loss until such goods are sold to a third person;
45	45
46	46	(9) "Special collectibles dealer" means a person who is primarily engaged in the business of buying or selling a distinctive type of manufactured item of limited supply designed for persons to collect or that possesses attractive characteristics, rarity, uniqueness, production faults or other distinctive characteristics necessary to cause a person to save it for hobby, display or investment purposes without regard to its value or practical use, including, but not limited to, china, glass, toys, militaria, sports memorabilia, movie memorabilia, railroad memorabilia, models, comic books, dolls, figurines or other items of interest to a discrete group of persons, other than antiques, coins, stamps, works of art, books, jewelry or precious metals;
47	47
48	48	(10) "Musical instruments dealer" means a person who is primarily engaged in the business of buying and selling new and used musical instruments and accessories;
49	49
50	50	(11) A person is "primarily engaged in a business" when such person is engaged in business and all or most of the business's income, transactions, employees or resources are involved in an activity or when the purpose of the business is essentially or fundamentally occupied with the performance of an activity;
51	51
52	52	(12) "Wholesaler" means a person engaged in the business of buying goods in large quantities and reselling the goods in the same or smaller quantities to persons who resell the goods to the ultimate consumer;
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54	54	(13) "Licensing authority" means the chief of police of any town or city or, if such town or city does not have an organized local police department, the Commissioner of Public Safety; and
55	55
56	56	(14) "Person" means an individual, corporation, limited liability company, partnership or association.
57	57
58	58	Sec. 2. Section 21-39 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):
59	59
60	60	(a) No person [, corporation, limited liability company or partnership] shall, in any city or town of this state, engage in [or carry on] the business of [loaning money upon deposits or pledges of wearing apparel, jewelry, ornaments, household goods or other personal property, or of purchasing such property on condition of selling the same back again at a stipulated price, unless such person, corporation, limited liability company or partnership is licensed as] a pawnbroker [; but the], precious metals dealer or second-hand dealer unless such person is licensed as provided in section 21-40, as amended by this act.
61	61
62	62	(b) The provisions of this chapter shall apply only if [such] property is [deposited with a lender] physically transferred from the possession of one of the parties to the transaction, and shall not apply to (1) loans made upon stock, bonds, notes or other written or printed evidence of ownership of property or of indebtedness to the holder or owner of any such securities, or (2) any transaction involving the purchase of personal property of any type from a person who is not a wholesaler for the purpose of reselling or exchanging such property by (A) a bona fide charitable or religious corporation, or (B) a person conducting a garage sale, yard sale, tag sale or estate sale conducted entirely at the residence of such person that does not exceed seventy-two hours in duration in any six-month period.
63	63
64	64	Sec. 3. Section 21-40 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):
65	65
66	66	(a) The [selectmen of any town and the chief of police of any] licensing authority of any town or city may grant licenses to suitable persons to be pawnbrokers, [and to carry on the business of lending money on the deposit or pledge of personal property, or of purchasing such property on condition of selling it back again at a stipulated price, or of purchasing such property from a person who is not a wholesaler, in such town or city respectively, and may revoke such licenses for cause; but the selectmen shall not grant such licenses for the carrying on of such business] precious metals dealers or second-hand dealers within the limits of [any city] such town or city, and may suspend or revoke such licenses for cause.
67	67
68	68	(b) The person so licensed shall pay, for the benefit of any such city or town, respectively, to the licensing authority [granting such license] a license fee of fifty dollars, and twenty-five dollars per year thereafter for renewal of such license, and shall, at the time of receiving such license, file, with the [mayor of such city or the first selectman of such town] licensing authority, a bond to such city or town, with competent surety, in the [penal sum] amount of [two] ten thousand dollars, to be approved by such licensing authority, and conditioned for the faithful performance of the duties and obligations pertaining to the business so licensed.
69	69
70	70	(c) Each such license shall designate the type of business to be engaged in and the place where such business is to be carried on and shall [continue] be in effect for one year unless sooner suspended or revoked. Such license shall be displayed in a conspicuous location in the place where such business is carried on. At the time of application for such license and each renewal thereof, the applicant shall disclose to the licensing authority all places used or intended to be used by the business for the purchase, receipt, storage or sale of property. During the term of such license, the licensee shall notify the licensing authority of any additional places that will be used by the business for the purchase, receipt, storage or sale of property prior to such use.
71	71
72	72	(d) An application for such license shall be made in writing, under oath. The application shall contain: (1) The type of business to be engaged in, (2) the applicant's full name, age and date and place of birth, (3) the applicant's residence addresses and places of employment within the preceding five years, (4) the applicant's present occupation, (5) any crime of which the applicant has been convicted and the date and place of such conviction, and (6) such additional information as the licensing authority deems necessary to investigate the qualifications, character, competency and integrity of the applicant. If the applicant is a corporation, limited liability company, partnership or association, the application shall contain the information required by this subsection for each individual who is or will be an officer, shareholder, financial backer or creditor, other than a financial institution, of such entity or any other individual with a relationship to such entity similar to that of an officer, shareholder, financial backer or creditor.
73	73
74	74	(e) The application for such license and any renewal thereof shall contain information on any Internet web site or account used by such applicant to conduct the business. During the term of the license, the licensee shall notify the licensing authority in writing of the addition or discontinuation of any Internet web sites or accounts used to conduct the business.
75	75
76	76	(f) No license shall be issued under this section by the [selectmen or chief of police] licensing authority to any person who has been convicted of a felony. [The selectmen or chief of police may require any applicant for a license under this section to submit to state and national criminal history records checks. If the selectmen or chief of police require such criminal history records checks, such checks] The licensing authority may require any applicant, employee or person with an ownership interest in the business to submit to state and national criminal history records checks. Whenever the licensing authority requires such criminal history records checks, such individual shall submit two complete sets of fingerprints on forms prescribed by the licensing authority. Any criminal history records checks required pursuant to this subsection shall be conducted in accordance with section 29-17a. The licensing authority may charge the individual a fee equal to the fees established by the Federal Bureau of Investigation and the State Police Bureau of Identification for performing such criminal history records checks.
77	77
78	78	(g) The licensing authority shall grant or deny such application not later than ninety days after the filing of such application with the licensing authority. Failure of the licensing authority to act on such application within such period shall be deemed to be a denial. Any person aggrieved by any action of the licensing authority in denying a license issued pursuant to this section may appeal therefrom to the Superior Court.
79	79
80	80	(h) Any applicant for a license or renewal thereof to engage in the business of a second-hand dealer may, at the time of the initial application or any time thereafter, apply for an exemption from the provisions of sections 21-41 to 21-43, inclusive, as amended by this act, and section 21-45, as amended by this act, for the term of the license or for such shorter period as the licensing authority may determine. The licensing authority may grant such exemption for good cause shown.
81	81
82	82	(i) The licensing authority may, for good cause shown, exempt any individual from the provisions of this chapter who engages in activities otherwise subject to the provisions of this chapter on an occasional basis.
83	83
84	84	Sec. 4. Section 21-41 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):
85	85
86	86	(a) No pawnbroker, [or person who loans money on the deposit or pledge of wearing apparel, jewelry, ornaments, household goods or other personal property or purchases such property on condition of selling the same back again at a stipulated price or purchases such property from a person who is not a wholesaler] precious metals dealer or second-hand dealer shall take, receive or purchase [such] tangible personal property without receiving proof of the identity of the person depositing, pledging or selling the property if such person is not a wholesaler. Such identification shall include a photograph, a date of birth, an address, if available on the identification, and an identifying number. [Any person who wilfully violates any provision of this subsection shall, for a first violation, have committed an infraction and, for a second or subsequent violation committed within two years of a prior violation, be guilty of a class A misdemeanor.]
87	87
88	88	(b) Each such pawnbroker, [or person carrying on such business of loaning money on the deposit or pledge of personal property or of purchasing such property on condition of selling the same back again at a stipulated price or of purchasing such property from a person who is not a wholesaler] precious metals dealer or second-hand dealer shall maintain a record-keeping system deemed appropriate by the [chief of police in cities and by the selectmen in towns,] licensing authority in which shall be entered in English, at the time [he] the licensee receives any article of personal property by way of deposit, pledge [, pawn] or purchase, a description of such article [,] and the name, the residence address, the proof of identity as required in subsection (a) of this section and a general description of the person from whom, and the day and hour when, such property was received and in which shall be included a digital photograph of such article. Each entry in such record-keeping system shall be numbered consecutively. A tag shall be attached to the article in a visible and convenient place with a number written thereon corresponding to the entry number in the record-keeping system and shall remain attached to the article until the article is sold or otherwise disposed of. Such tag shall be visible in the digital photograph required by this subsection. Such record-keeping system and the place or places where such business is carried on and all articles of property therein may be examined at all times by any state police officer [, by any] or municipal police officer. [, by the selectmen of the town or any person by them designated or, if such business is carried on in a city, by the chief of police of such city or any person by him designated.] Any state police officer or municipal police officer [of the town or city where the business is carried on] who performs such an examination may require any employee on the premises to provide proof of his identity.
89	89
90	90	(c) The description of any property received by a licensee under this section shall include, but is not limited to, all distinguishing marks, names of any kind, including brand and model names, model and serial numbers, engravings, etchings, affiliation with any institution or organization, dates, initials, color, size, vintage or image represented. A description of a jewelry item shall also include the material, ring size, weight, chain length, shape, carat weight and color as applicable. A description of audio, video or electronic media of any kind shall also include the title and artist or other identifying information contained on the cover or external surface of such media.
91	91
92	92	Sec. 5. Section 21-42 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):
93	93
94	94	(a) Each [such] pawnbroker, precious metals dealer or second-hand dealer shall, at the time of making any loan on a [pawn] deposit or pledge of personal property or of purchasing such property, [on condition of selling the same back again at a stipulated price or of purchasing such property from a person who is not a wholesaler,] deliver to the person who [pawns] deposits, pledges or sells such property a memorandum or note containing the entry required to be made in [his] the record-keeping system [by] pursuant to the provisions of section 21-41, as amended by this act.
95	95
96	96	(b) Each [such] pawnbroker, precious metals dealer or second-hand dealer shall pay for any property received by [pawn] deposit, pledge or purchase only by check, draft or money order and shall not pay cash for any such property. [except when the pawnbroker cashes a check, draft or money order for the person who is pawning, pledging or selling the property. When the pawnbroker cashes a check, draft or money order, he shall require proof of the identity of the person presenting the check, draft or money order in accordance with subsection (a) of section 21-41. Any person who wilfully violates any provision of this section shall be guilty of a class A misdemeanor.] Each such check, draft or money order shall contain the number or numbers associated with such property in the record-keeping system required to be maintained pursuant to section 21-41, as amended by this act. Whenever such check, draft or money order is negotiated, the pawnbroker, precious metals dealer or second-hand dealer shall retain the cancelled instrument upon its return from a financial institution and such instrument is subject to inspection pursuant to section 21-41, as amended by this act, as part of such record-keeping system. No pawnbroker, precious metals dealer or second-hand dealer shall accept and pay a check, draft or money order issued by him.
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98	98	(c) No pawnbroker, precious metals dealer or second-hand dealer may purchase any personal property from a minor unless such minor is accompanied by such minor's parent or guardian.
99	99
100	100	Sec. 6. Section 21-43 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):
101	101
102	102	Each [such] pawnbroker, precious metals dealer or second-hand dealer shall make, weekly or more frequently as determined by the licensing authority upon consideration of the volume and nature of the business, a sworn statement of his transactions, describing the goods received and setting forth the nature and terms of the transaction and the name and residence address and a description of the person from whom the goods were received, to the [chief of police in cases of cities and boroughs, and in other cases to the town clerk of the town in which such pawnbroker resides. Any such pawnbroker who wilfully fails to make the report required by this section shall be fined not more than one hundred dollars] licensing authority.
103	103
104	104	Sec. 7. Section 21-44 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):
105	105
106	106	(a) No pawnbroker [or person who loans money on the deposit or pledge of personal property] shall take or receive, for the use of money either loaned on personal property or paid in connection with the purchase of property on condition of selling the same back again at a stipulated price, any more than the following rates: For the use of money amounting to fifteen dollars or less, five per cent per month or fraction thereof; for the use of money exceeding fifteen dollars in amount and not exceeding fifty dollars in amount, three per cent per month or fraction thereof; for the use of money exceeding fifty dollars in amount, two per cent per month or fraction thereof.
107	107
108	108	(b) No pawnbroker shall charge any fee to any person who deposits, pledges or sells any property unless (1) the nature, amount and type of any such fee is clearly and conspicuously disclosed and specified by the pawnbroker in writing both at the place of business of the pawnbroker and in the memorandum or note that the pawnbroker is required to deliver pursuant to section 21-42, as amended by this act, and (2) the amount of any such fee is reasonably equivalent to a cost incurred by the pawnbroker in the normal and customary course of business and is intended to reimburse the pawnbroker for such cost.
109	109
110	110	Sec. 8. Section 21-45 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):
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112	112	(a) No pawnbroker shall sell or dispose of any personal property left with him in deposit or pledge for money loaned or as a result of the purchase of such property on condition of selling the same back again at a stipulated price in less than two months from the day when the same is left in deposit or pledge [as aforesaid] or purchased, except when such sale or disposition is to the person who deposited, pledged or sold such property. All such property may be sold or disposed of at the [premises] place of business of such pawnbroker or at public sale after advertisement in a daily newspaper published in the town or city in which such pawnbroker carries on the business, at least once two days before the date of the sale or sales, which advertisement shall state the numbers of the pledge tickets representing the property offered for sale, and the date or dates when such tickets were issued.
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114	114	(b) No precious metals dealer or second-hand dealer shall sell or dispose of any personal property acquired in any transaction in the course of business in less than twenty-one days from the date of its receipt. Upon the sale or disposition of such property, such dealer shall, if such property is not sold at retail at the place of business of such dealer, record in the record-keeping system required by section 21-41, as amended by this act, the value received for such property, the name and address of the purchaser and the nature of the transaction.
115	115
116	116	Sec. 9. Section 21-46a of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):
117	117
118	118	Whenever property is seized from the [premises] place of business of a pawnbroker, precious metals dealer or second-hand dealer by a law enforcement officer, such officer shall give the pawnbroker, precious metals dealer or second-hand dealer a duly signed receipt for the property containing a case number, a description of the property, the reason for the seizure, the name and address of the officer, the name and address of the person claiming a right to the property prior to the pawnbroker, precious metals dealer or second-hand dealer and the name of the pawnbroker, precious metals dealer or second-hand dealer. If the pawnbroker, precious metals dealer or second-hand dealer claims an ownership interest in such property, he may request the return of such property by filing a request therefor with the law enforcement agency in accordance with the provisions of section 54-36a.
119	119
120	120	Sec. 10. Section 21-47 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):
121	121
122	122	(a) Any person [, corporation, limited liability company or partnership which] who wilfully engages in the business of a pawnbroker, [or in any business described in section 21-39] precious metals dealer or second-hand dealer, unless licensed according to law, or after notice that [its] his license has been suspended or revoked, shall be guilty of a class D felony. [, and also shall forfeit treble the amount loaned on the property so pledged to any person injured thereby who sues therefor.]
123	123
124	124	(b) Any person [, corporation, limited liability company or partnership which wilfully] who violates any of the provisions of this chapter for which no other penalty is provided [or neglects to keep a record-keeping system in the English language or to make the entries therein as provided by law or refuses to allow the same to be inspected by the proper officers or receives an article of personal property by way of pawn, pledge or purchase from any minor, knowing or having reason to believe him to be a minor,] shall be guilty of a class A misdemeanor.
125	125
126	126	Sec. 11. Section 21-9 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):
127	127
128	128	As used in this chapter, "junk dealer" means any person who engages in business as a dealer and trader in junk, old metals, scrap, rags, waste paper or other secondhand articles that are no longer serviceable for their original manufactured purpose, and "junk yard" means any place in or on which old metal, glass, paper, cordage or other waste or discarded or secondhand material, which has not been a part, or is not intended to be a part, of any motor vehicle, is stored or deposited.
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130	130	Sec. 12. Section 21-11 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):
131	131
132	132	Any person desiring to engage in business as a dealer [and trader in secondhand bicycles,] in junk, metals or other secondhand articles that are no longer serviceable for their original manufactured purpose in any town, city or borough shall make application to the selectmen of such town, the mayor or chief of police of such city or the warden of such borough, as the case may be, for a license to transact such business within the limits of such town, city or borough, and the selectmen of such town, the mayor or chief of police of such city or the warden of such borough shall issue such licenses to such suitable persons as apply therefor and may revoke any such license for cause; but the selectmen shall not grant any such license for the carrying on of such business within the limits of any city or borough, and the persons so licensed shall pay, for the benefit of any such town, city or borough, to the authority granting the license, not less than two nor more than ten dollars therefor, to be determined by the authority granting the license, and for renewal of such license ten dollars per year. Each license granted under the provisions of this section shall designate the place where such business is to be carried on, and shall continue for one year unless sooner revoked. Each such dealer shall keep a book in which shall be written in English a description of such articles and the name and residence and a general description of the person from whom, and the time and hour when, such property was received; and such book, and all articles of property mentioned therein, and the place where such business is carried on, may be examined at any time by the selectmen of the town or any person designated by them, and, in any city or borough, by the chief of police of such city or borough or any person by him designated. Each such dealer shall make, weekly, sworn statements of all his transactions under such license, describing the goods received and setting forth the name and residence and a description of the person from whom such goods were received, to the chief of police in the case of cities or boroughs and, in other cases, to the town clerk of the town in which such junk dealer resides, and shall keep all goods at least five days after the filing of such statement.
133	133
134	134	Sec. 13. Section 21-100 of the general statutes is repealed. (Effective July 1, 2010)
135	135
136	136
137	137
138	138
139	139	This act shall take effect as follows and shall amend the following sections:
140	140	Section 1 July 1, 2010 New section
141	141	Sec. 2 July 1, 2010 21-39
142	142	Sec. 3 July 1, 2010 21-40
143	143	Sec. 4 July 1, 2010 21-41
144	144	Sec. 5 July 1, 2010 21-42
145	145	Sec. 6 July 1, 2010 21-43
146	146	Sec. 7 July 1, 2010 21-44
147	147	Sec. 8 July 1, 2010 21-45
148	148	Sec. 9 July 1, 2010 21-46a
149	149	Sec. 10 July 1, 2010 21-47
150	150	Sec. 11 July 1, 2010 21-9
151	151	Sec. 12 July 1, 2010 21-11
152	152	Sec. 13 July 1, 2010 Repealer section
153	153
154	154	This act shall take effect as follows and shall amend the following sections:
155	155
156	156	Section 1
157	157
158	158	July 1, 2010
159	159
160	160	New section
161	161
162	162	Sec. 2
163	163
164	164	July 1, 2010
165	165
166	166	21-39
167	167
168	168	Sec. 3
169	169
170	170	July 1, 2010
171	171
172	172	21-40
173	173
174	174	Sec. 4
175	175
176	176	July 1, 2010
177	177
178	178	21-41
179	179
180	180	Sec. 5
181	181
182	182	July 1, 2010
183	183
184	184	21-42
185	185
186	186	Sec. 6
187	187
188	188	July 1, 2010
189	189
190	190	21-43
191	191
192	192	Sec. 7
193	193
194	194	July 1, 2010
195	195
196	196	21-44
197	197
198	198	Sec. 8
199	199
200	200	July 1, 2010
201	201
202	202	21-45
203	203
204	204	Sec. 9
205	205
206	206	July 1, 2010
207	207
208	208	21-46a
209	209
210	210	Sec. 10
211	211
212	212	July 1, 2010
213	213
214	214	21-47
215	215
216	216	Sec. 11
217	217
218	218	July 1, 2010
219	219
220	220	21-9
221	221
222	222	Sec. 12
223	223
224	224	July 1, 2010
225	225
226	226	21-11
227	227
228	228	Sec. 13
229	229
230	230	July 1, 2010
231	231
232	232	Repealer section
233	233
234	234	Statement of Purpose:
235	235
236	236	To revise the licensing and business practice requirements for persons engaged in the business of pawnbrokers, precious metal dealers or second-hand dealers.
237	237
238	238	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]