S*292 Session 104 (1981-1982)
S*0292(Rat #0207, Act #0147 of 1981) General Bill, By Senate Judiciary
A Bill to amend the Code of Laws of South Carolina, 1976, by adding Chapter 54
to Title 40 so as to provide for the regulation of dealers in precious metals
and provide penalties for violations.
03/05/81 Senate Introduced, read first time, placed on calendar
without reference SJ-8
03/11/81 Senate Read second time SJ-12
03/11/81 Senate Ordered to third reading with notice of
amendments SJ-12
03/12/81 Senate Amended SJ-12
03/12/81 Senate Read third time and sent to House SJ-12
03/17/81 House Introduced and read first time HJ-1210
03/17/81 House Referred to Committee on Judiciary HJ-1210
04/29/81 House Committee report: Favorable with amendment
Judiciary HJ-2096
05/05/81 House Amended HJ-2206
05/05/81 House Read second time HJ-2213
05/06/81 House Read third time HJ-2227
05/06/81 House Returned HJ-2227
05/12/81 Senate Non-concurrence in House amendment SJ-13
05/13/81 House House insists upon amendment and conference
committee appointed Reps. Reps. Hughston,
Manning & Toal HJ-2379
05/13/81 Senate Conference committee appointed Sens. Heyward
McDonald, Tom Smith, Cantrell SJ-18
06/24/81 House Conference report received HJ-3394
06/25/81 House Debate adjourned HJ-3413
06/25/81 Senate Conference report received SJ-9
06/30/81 House Conference report adopted HJ-3455
06/30/81 Senate Conference report adopted SJ-7
06/30/81 Senate Ordered enrolled for ratification SJ-7
07/02/81 Senate Ratified R 207 SJ-4
07/08/81 Signed By Governor
07/08/81 Effective date 09/06/81 (60 days after approval)
07/08/81 Act No. 147
07/17/81 Copies available
(A147, R207, S292)
AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 64
TO TITLE 40 SO AS TO PROVIDE FOR THE REGULATION OF DEALERS IN PRECIOUS METALS AND
PROVIDE PENALTIES FOR VIOLATIONS.
Be it enacted by the General Assembly of the State of South Carolina:
Regulation of dealers in precious metals
SECTION 1. The 1976 Code is amended by adding to Title 40:
"Chapter 54
Dealers in Precious Metals
Section 40-54-10. As used in this chapter:
(1) 'Dealer' means any person, corporation or partnership who buys precious
metal from the general public whether in bulk or in manufactured form with an
intent to obtain a monetary profit for himself or for a principal.
(2) 'Precious metal' means any article made in whole or in part of gold,
silver or platinum.
(3) 'Local law enforcement agency' means the chief of police for businesses
located within the corporate limits of a municipality and the county law
enforcement agency for businesses located outside the corporate limits of a
municipality.
(4) 'Permanent place of business' means a fixed premises either owned by the
dealer or leased by him. One year's lease shall be a presumption of permanency.
(5) 'Places proposed to do business' means the counties or municipalities in
which the dealer intends to purchase precious metals.
(6) 'Purchase' means the acquisition of precious metal for a consideration of
cash, goods or other precious metals. Trade-ins shall be covered by the
provisions of this act unless the item traded was directly purchased from the
dealer allowing the trade.
Section 40-54-20. No dealer as defined herein shall operate in the State of
South Carolina unless he first obtains a permit to engage in the business of
purchasing precious metals from the local law enforcement agency and operates
only from a permanent place of business. No dealer shall operate upon public
property nor from a vehicle, flea market, hotel room or similar temporary
location.
The form of the permit to engage in the business of purchasing precious metals
shall be prescribed by the State Law Enforcement Division and all applicants for
a permit under this act, whether a person, firm or corporation, shall file a
written sworn application signed by the applicant if an individual, by all the
partners if a partnership, and by the president if a corporation, with the local
law enforcement agency showing:
(a) The names of the persons managing, supervising or conducting the
applicant's business in any places proposed to carry on business; the addresses
of such persons; the driver's license number of such persons; the capacity in
which such persons will act, that is, whether as proprietor, agent or otherwise;
the name and address of the person, firm or corporation for whose account the
business will be carried on, if any; and if a corporation, the state of
incorporation.
(b) The permanent places of business and other places in the State of South
Carolina where it is proposed to carry on the applicant's business and the places
where the applicant has carried on the business of purchasing precious metals
within one year preceding the date of such application.
(c) Such other reasonable information as to the identity of the persons
managing, supervising or conducting the applicant's business as the local law
enforcement agency may deem proper to fulfill the purposes of this act.
(d) A statement of the nature, character and quality of the precious metals
to be purchased in the business.
Upon receipt of such application for a permit, the local law enforcement agency
shall cause an investigation of such person's business and personal background
to be made. Such investigation shall be limited to information pertinent to the
purposes of this act. If, as a result of the investigation, the background is
found to be unsatisfactory, the permit shall be denied. The permit shall be
denied or issued within thirty days from the date of application. Upon the
issuance of the permit, the local law enforcement agency shall notify the State
Law Enforcement Division of the locations where the permit holder proposes to
carry on his business. The permit issued under this act shall be valid for a
period of one year from the date issued and the annual fee shall be fifty dollars
to provide for the administrative costs. If the dealer intends to operate from
more than one location within the State, then separate permits shall be issued
for each place of business; provided, however, only one annual fee shall be
collected.
The permits under this act shall be in addition to and not in lieu of other
business licenses.
A permit may be denied, suspended or revoked at any time if the local law
enforcement agency discovers that the information on the application is
inaccurate or the dealer or applicant does not comply with the requirements of
this act. The permit holder shall notify, within ten days, the local law
enforcement agency if any substantive changes occur in the permanent place of
business in the persons managing, supervising or conducting the applicant's
business, or in the places the permit holder intends to do business.
Section 40-54-30. A permit issued under this chapter shall be posted
conspicuously at all places of business named therein.
Section 40-54-40. Every dealer shall keep a book in which shall be written at
the time of any purchase of precious metal made from the general public whether
in bulk or manufactured form, the date of purchase, amount of money or other
property exchanged therefor, the name, sex, race, age, address and driver's
license number of the person selling the items, articles or things bought, and
the number and nature and brand name of such items, articles or things.
Descriptions shall include size, weight, patterns or engraving or any unusual
identification marks. If the seller does not have a driver's license, some other
positive identification bearing his photograph and an identifying number may be
substituted. If the seller cannot produce a driver's license or other positive
identification, the dealer shall not buy any merchandise from him. Every dealer
shall, at the time of purchase, obtain the signature of the seller as part of the
recording of the transaction.
The record book shall be kept for three years and shall at all reasonable times
be open to the inspection of any judicial or law enforcement officials or their
designees.
The local law enforcement agency shall not reveal a seller's identity supplied
under this section except to other law enforcement agencies and prosecuting
officials or pursuant to the valid order of a court or in the course of any
criminal investigation or prosecution.
Section 40-54-50. (A) No dealer may purchase any precious metal from a minor
unless accompanied by his parent or guardian with appropriate identification.
(B) All precious metals purchased by a dealer shall be held by the dealer at
his permanent place of business or at another suitable location in the State of
South Carolina without being resold, melted or altered in any manner, for a
period of seven days from the purchase date. All goods required to be held under
this section shall at all reasonable times be open to inspection by any law
enforcement agency.
Section 40-54-60. Possession of equipment which has been used, or is being used
for the melting, crushing or altering of the precious metals is unlawful unless
possessed by a dealer with a valid permit as provided in Section 40-54-20.
Section 40-54-70. Any dealer buying precious metal with knowledge that the
metal has been stolen shall be liable to the lawful owner of such metal in an
amount triple the fair market value of the stolen items, computed at the time of
the theft, and shall be liable for a reasonable attorney's fee as the court in
its discretion may award. This shall be a civil remedy and in addition to any
other remedies provided by the law. Provided, any dealer, having purchased
precious metal in compliance with the provisions of this chapter, such metal
subsequently being shown to have been stolen by a member of the immediate family
of the rightful owner, may demand reimbursement from the owner equal to the
amount paid for the metal before returning the metal to the owner.
Section 40-54-80. Any dealer violating the provisions of this chapter shall be
deemed guilty of a misdemeanor and upon conviction, for a first offense, shall
be fined not more than five hundred dollars or imprisoned not more than ninety
days, or both. A second offense conviction shall be punishable by a fine of not
more than two thousand dollars or imprisonment not more than one year, or both.
A third or subsequent offense conviction shall be punishable by a fine of not
more than five thousand dollars or imprisonment not more than three years, or
both. A dealer convicted of a second offense shall be ineligible for a permit to
conduct business in precious metals in this State for at least two years and a
dealer convicted of a third or subsequent offense shall not be eligible for a
permit for at least five years.
Section 40-54-90. The provisions of this chapter shall regulate the business
of purchasing precious metals in this State and shall preempt any ordinances
passed by political subdivisions purporting to regulate such business.
Section 40-54-100. This chapter shall not apply to the following specific
transactions:
(1) a transaction between dealers of precious metals where the selling dealer
has already complied with the seven day holding period, nor shall they apply to
transactions between coin dealers and coin collectors occurring at regularly
scheduled numismatic conventions.
(2) the purchase of manufactured items bought directly from the manufacturer
or his authorized representatives.
(3) the purchase of bulk precious metals brought directly from the commodity
exchanges, banks, dealers or licensed brokers."
Time effective
SECTION 2. This act shall take effect sixty days following approval by the
Governor, during which time period the process of issuing permits shall take
place. |