Section 1. That sections 4728.01, 4728.02, 4728.03, 4728.04, | 10 |
4728.05, 4728.06, 4728.07, 4728.08, 4728.09, 4728.10, 4728.11, | 11 |
4728.12, 4728.13, 4728.14, and 4728.99 be amended and sections | 12 |
4728.061, 4728.16, 4728.17, and 4728.18 of the Revised Code be | 13 |
enacted to read as follows: | 14 |
(A) "Precious metals dealer" means a person who is engaged in | 16 |
the business of purchasing articles made of or containing gold, | 17 |
silver, platinum, or other precious metals or jewels of any | 18 |
description if, in any manner, including any form of | 19 |
advertisement, signage, electronic media, including electronic | 20 |
mail, or other solicitation of customers, the person holds | 21 |
himself, herself, or itself out to the public as willing to | 22 |
purchase such articles. | 23 |
(B) Notwithstanding any provision in this chapter to the | 50 |
contrary, a person holding a license as a pawnbroker pursuant to | 51 |
Chapter 4727. of the Revised Code may act as a precious metals | 52 |
dealer without being separately licensed pursuant to this chapter. | 53 |
Pawnbrokers are subject to all the requirements imposed upon the | 54 |
conduct of persons holding a regular precious metals dealer's | 55 |
license with respect to any articles that the pawnbroker purchases | 56 |
made of or containing gold, silver, platinum, or other precious | 57 |
metals or jewels of any description. | 58 |
(B)(1) The divisionsuperintendent of financial institutions | 77 |
in the department of commerce may grant a precious metals dealer's | 78 |
license to any person of good character, having experience and | 79 |
fitness in the capacity involved to engage in the business of a | 80 |
precious metals dealer, who demonstrates a net worth of at least | 81 |
tenone hundred thousand dollars and the ability to maintain that | 82 |
net worth during the licensure period. The superintendent of | 83 |
financial institutions shall compute the applicant's net worth | 84 |
according to generally accepted accounting principles. | 85 |
(C)(1) The divisionsuperintendent shall require an applicant | 100 |
for a precious metals dealer's license to pay to the division a | 101 |
nonrefundable, initial investigation fee of two hundred dollars | 102 |
which shall be for the exclusive use of the state. The license fee | 103 |
for a precious metals dealer's license and the renewal fee shall | 104 |
be determined by the superintendent, provided that the fee may not | 105 |
exceed three hundred dollars. A | 106 |
(2) A license issued by the divisionsuperintendent before | 107 |
January 1, 2012, shall expire on the lastthirtieth day of June | 108 |
next following the date of its issuance. A license issued by the | 109 |
superintendent on or after January 1, 2012, shall expire on the | 110 |
thirtieth day of June in the even-numbered year next following the | 111 |
date of its issuance. Fifty per cent of license fees shall be for | 112 |
the use of the state, and fifty per cent shall be paid to the | 113 |
municipal corporation, or if outside the limits of any municipal | 114 |
corporation, to the county in which the office of the licensee is | 115 |
located. All portions of license fees payable to municipal | 116 |
corporations or counties that are paid before January 1, 2012, | 117 |
shall be paid as they accrue, by the treasurer of state, on | 118 |
vouchers issued by the director of budget and management. All | 119 |
portions of license fees payable to municipal corporations or | 120 |
counties that are paid on or after January 1, 2012, shall be paid | 121 |
biennially, by the treasurer of state, on vouchers issued by the | 122 |
director of budget and management. | 123 |
(D) Every such(1) Until December 31, 2011, every license | 124 |
issued or renewed before January 1, 2012, shall be renewed | 125 |
annually by the
lastthirtieth day of June according to the | 126 |
standard renewal procedure of Chapter 4745. of the Revised Code. | 127 |
Every license issued or renewed on or after January 1, 2012, shall | 128 |
be renewed biennially by the thirtieth day of June in accordance | 129 |
with the standard renewal procedure of Chapter 4745. of the | 130 |
Revised Code. | 131 |
(2) No license shall be granted to any person not a resident | 132 |
of or the principal office of which is not located in the | 133 |
municipal corporation or county designated in such license, | 134 |
unless, and until such applicant shall, in writing and in due | 135 |
form, to be first approved by and filed with the division, appoint | 136 |
an agent, a resident of the state, and city or county where the | 137 |
office is to be located, upon whom all judicial and other process, | 138 |
or legal notice, directed to the applicant may be served; and in | 139 |
case of the death, removal from the state, or any legal disability | 140 |
or any disqualification of any agent, service of process or notice | 141 |
may be made upon the superintendent. | 142 |
(4) The fee for renewal of a license shall be equivalent to | 146 |
the fee for an initial license established by the superintendent | 147 |
pursuant to section 1321.20 of the Revised Code. Any licensee who | 148 |
wants to renew a license, but fails to do so on or before the date | 149 |
the license expires, shall reapply for licensure in the same | 150 |
manner, and subject to the same requirements, as for initial | 151 |
licensure, unless the licensee pays the superintendent, on or | 152 |
before the thirty-first day of August of the year the license | 153 |
expires, a late renewal penalty of one hundred dollars in addition | 154 |
to the regular renewal fee. | 155 |
(E) The division may, pursuant to Chapter 119. of the Revised | 164 |
Code, upon notice to the licensee and after giving the licensee | 165 |
reasonable opportunity to be heard, revoke or suspend any license, | 166 |
if the licensee or the licensee's officers, agents, or employees | 167 |
violate this chapter. Whenever, for any cause, the license is | 168 |
revoked or suspended, the division shall not issue another license | 169 |
to the licensee nor to the husband or wife of the licensee, nor to | 170 |
any copartnership or corporation of which the licensee is an | 171 |
officer, nor to any person employed by the licensee, until the | 172 |
expiration of at least one year from the date of revocation of the | 173 |
license. | 174 |
If the superintendent of financial institutions determines | 183 |
that conducting an investigation to determine whether an applicant | 184 |
satisfies the requirements for licensure under this section will | 185 |
require procuring information outside the state, then, in addition | 186 |
to the fee established under division (C) of this section, the | 187 |
superintendent may require the applicant to pay any of the actual | 188 |
expenses incurred by the division to conduct such an | 189 |
investigation, provided that the superintendent shall assess the | 190 |
applicant a total no greater than one thousand dollars for such | 191 |
expenses. The superintendent may require the applicant to pay in | 192 |
advance of the investigation, sufficient funds to cover the | 193 |
estimated cost of the actual expenses. If the superintendent | 194 |
requires the applicant to pay investigation expenses, the | 195 |
superintendent shall provide to the applicant an itemized | 196 |
statement of the actual expenses incurred by the division to | 197 |
conduct the investigation. | 198 |
Sec. 4728.04. (A) The application for a license under this | 210 |
chapter shall state fully the name and address of the person, or | 211 |
corporation, and of every member of the firm, partnership, or | 212 |
association, authorized to do business thereunder, the name of the | 213 |
individual responsible for the daily operation of the business, | 214 |
and the location of the office or place of business in which the | 215 |
business is conducted. In the case of a corporation, the | 216 |
application also shall state the date and place of incorporation, | 217 |
the name and address of the corporation's manager, the names and | 218 |
addresses of corporate directors, and the name and address of the | 219 |
agent, as provided in section 4728.03 of the Revised Code. | 220 |
The holder of a precious metals dealer's license shall keep | 221 |
the license posted in a conspicuous place in the office where | 222 |
business is transacted. No licensee shall transact or solicit | 223 |
business under any other name or location. Not more than one | 224 |
office or place of business shall be maintained under the same | 225 |
license, except as provided under division (C) of this section. In | 226 |
case of removal, the licensee shall provide written notice in | 227 |
advance to the division of financial institutions in the | 228 |
department of commerce of a prospective change of address of a | 229 |
business location. Upon approval by the superintendent of | 230 |
financial institutions, the division shall issue a new license. If | 231 |
the new location is outside the municipal corporation or county of | 232 |
the original licensed location, the licensee shall pay an | 233 |
additional license fee according to section 4728.03 of the Revised | 234 |
Code. | 235 |
(B) A person licensed under this chapter shall post a | 236 |
conspicuous notice in its place of business visible to all | 237 |
patrons, in a form and at places designated by rule of the | 238 |
division, that the licensee has no right to retain goods stolen | 239 |
from the true owner, and that the owner may recover the goods or | 240 |
their value from the licensee in an action at law or, if the chief | 241 |
or head of a local police department or the chief's or head's | 242 |
representativelaw enforcement agency takes custody of the goods, | 243 |
by release pursuant to section 2981.11 of the Revised Code. | 244 |
(C)(1) The superintendent may issue to a person licensed | 245 |
under this chapter
or Chapter 4727. of the Revised Code a | 246 |
temporary exhibition permit for a term that coincides with that of | 247 |
the license of the licensee. A person issued a permit under this | 248 |
division may engage in the business of purchasing articles made of | 249 |
or containing gold, silver, platinum, or other precious metals or | 250 |
jewels from the public at a bona fide auction, convention, | 251 |
exhibition, fair, or show, the primary purpose of which is to | 252 |
display, trade, and sell articles made of or containing precious | 253 |
metals or jewels, for a period not to exceed seven days for any | 254 |
one auction, convention, exhibition, fair, or show.
The | 255 |
superintendent shall not issue a permit to a licensee if the sole | 256 |
purpose of the licensee's application is to buy precious metals or | 257 |
jewels at a location other than that listed on the licensee's | 258 |
license. | 259 |
(4) A permit holder who wishes to participate in an auction, | 269 |
convention, exhibition, fair, or show shall, at least two weeks | 270 |
prior to its scheduled opening, submit to the superintendent, or | 271 |
and the chief or the head of the local police departmentlaw | 272 |
enforcement agency with jurisdiction at the location of the event, | 273 |
the holder's name, the location of the auction, convention, | 274 |
exhibition, fair, or show, and the holder's permanent business | 275 |
address as it appears on the holder's permit issued under division | 276 |
(C)(2) of this section. | 277 |
Sec. 4728.05. (A) The superintendent of financial | 283 |
institutions may, either personally or by a person whom the | 284 |
superintendent appoints for the purpose, if the superintendent | 285 |
considers it advisable, investigate at least once a year the | 286 |
business of every person licensed as a precious metals dealer | 287 |
under this chapter, and of every person, partnership, and | 288 |
corporation by whom or for which any purchase is made, whether the | 289 |
person, partnership, or corporation acts, or claims to act, as | 290 |
principal, agent, or broker, or under, or without the authority of | 291 |
this chapter, and for. For that purpose, the superintendent shall | 292 |
have free access to the books and papers
thereofof the business, | 293 |
person, partnership, or corporation and other sources of | 294 |
information with regard to the business of the licensee or person | 295 |
and whether the business has been or is being transacted in | 296 |
accordance with this chapter. The superintendent and every | 297 |
examiner may examine, under oath or affirmation, any person whose | 298 |
testimony may relate to any business coming within this chapter. | 299 |
(C) If a person fails to comply with a subpoena or subpoena | 313 |
duces tecum, the superintendent may apply to the court of common | 314 |
pleas of Franklin county for an order compelling the person to | 315 |
comply with the subpoena or subpoena duces tecum or, for failure | 316 |
to do so, an order holding the person in contempt of court. The | 317 |
superintendent, in accordance with section 4728.03 of the Revised | 318 |
Code, may suspend or revoke the license of any precious metals | 319 |
dealer who fails to comply with this division. | 320 |
(D) In connection with any investigation under this section, | 321 |
the superintendent may file an action in the court of common pleas | 322 |
of Franklin county or the court of common pleas of the county in | 323 |
which the person who is the subject of the investigation resides | 324 |
to obtain an injunction, a temporary restraining order, or other | 325 |
appropriate relief, if it appears to the superintendent that the | 326 |
person is engaging in actions or threatening to engage in actions | 327 |
in violation of this chapter. | 328 |
(E) If in an investigation under this section the | 329 |
superintendent determines that a person not licensed under this | 330 |
chapter, or an employee of that person, has been or is engaged or | 331 |
is threatening to engage in activities for which a license is | 332 |
required under this chapter, the superintendent may issue an order | 333 |
to that person requiring the person to show cause why the person | 334 |
should not be subject to licensure under this chapter. If the | 335 |
superintendent determines, after notice and a hearing conducted in | 336 |
accordance with Chapter 119. of the Revised Code, that a person is | 337 |
engaged in, or is threatening to engage in activities that | 338 |
constitute a violation of this chapter, the superintendent may | 339 |
issue a cease and desist order that describes the person and | 340 |
activities that are subject to the order and may impose upon the | 341 |
person a penalty of not less than onefive hundred nor more than | 342 |
ten thousand dollars for a violation of this chapter. Any cease | 343 |
and desist order and any penalty issued under this section are | 344 |
enforceable in and may be appealed to a court of common pleas | 345 |
pursuant to Chapter 119. of the Revised Code. | 346 |
Sec. 4728.06. EveryExcept as provided in division (F) of | 347 |
this section, every person licensed under this chapter shall keep | 348 |
and use books and forms approved by the superintendent of | 349 |
financial institutions, which shall disclose,to record | 350 |
information about purchases. The forms and books shall be | 351 |
intelligible, written in the English language, and used | 352 |
exclusively for the purposes described in this section. | 353 |
(C)(1) The licensee shall keep the booksrecords and forms in | 374 |
numerical order at all times at the licensed location, open to the | 375 |
inspection of the superintendent or chief of or head of theand | 376 |
local police department, a police officer deputed by the chief or | 377 |
head of police, or the chief executive officer of the political | 378 |
subdivision thereoflaw enforcement agency that has jurisdiction | 379 |
of the area where the business is located. Upon demand of any of | 380 |
these officials, the licensee shall produce and show an article | 381 |
thus listed and described which isany records, forms, or | 382 |
purchases that are in the licensee's possession. | 383 |
(F) Notwithstanding any other provision of this chapter, a | 408 |
licensee may use other methods of recording data, keeping records, | 409 |
and keeping books, such as electronic or computerized methods, in | 410 |
lieu of the methods described in this section, provided that | 411 |
written printouts or hard copies of the required data are readily | 412 |
available in a form approved, in advance, by the superintendent. | 413 |
Sec. 4728.07. (A) Each person licensed under Chapter 4728. of | 430 |
the Revised Code, shall, every business day, make available to the | 431 |
chief or the head of the local
police department, on forms | 432 |
furnished by the police department,law enforcement agency a full | 433 |
description of all articles received by the licensee on the | 434 |
business day immediately preceding, together with the number of | 435 |
the receiptrecord or form issued. | 436 |
(B) If the chief or head of the local police departmentlaw | 451 |
enforcement agency to whom the licensee made available the | 452 |
information required by this chapter has probable cause to believe | 453 |
that the article described therein is stolen property, hethe | 454 |
agency shall notify the licensee in writing. Upon receipt of | 455 |
notice, the licensee shall retain the article until the expiration | 456 |
of thirty days after the day on which hethe licensee is first | 457 |
required to make available the information required by this | 458 |
section, unless the chief or the head of the local police | 459 |
departmentagency notifies the licensee in writing that hethe | 460 |
licensee is not required to retain the article until the | 461 |
expiration. | 462 |
Sec. 4728.10. (A) The superintendent of financial | 481 |
institutions shall enforce this chapter, make all reasonable | 482 |
effort to discover alleged violators, notify the proper | 483 |
prosecuting officer whenever the superintendent has reasonable | 484 |
grounds to believe that a violation has occurred, act as | 485 |
complainant in the prosecution thereof, and aid officers to the | 486 |
best of the superintendent's ability in prosecutions. The | 487 |
superintendent shall employ deputies necessary to make the | 488 |
investigations and inspections, and. The superintendent, pursuant | 489 |
to Chapter 119. of the Revised Code, shall adopt reasonable rules, | 490 |
including rules that define terms used in this chapter, for the | 491 |
carrying out of this chapter, and otherwise perform the duties | 492 |
imposed by this chapter. | 493 |
(5) Examine and investigate the business of any person the | 510 |
superintendent reasonably suspects to be advertising, transacting, | 511 |
or soliciting business as a precious metals dealer. This authority | 512 |
includes the authority to examine and investigate the person's | 513 |
business location and any books, records, writings, including | 514 |
electronic writings, safes, files, or storage areas located in or | 515 |
utilized by the business location. The superintendent may request | 516 |
the attendance and assistance of the appropriate local law | 517 |
enforcement agency or the state highway patrol during the | 518 |
examination and investigation of the business. | 519 |
(A) Any purchase of an article that is made of or contains | 522 |
gold, silver, platinum, or other precious metals or jewels and | 523 |
jewelry of any description, including watches, if both the buyer | 524 |
and seller, or the respective agents, brokers, or other | 525 |
intermediaries of both the buyer and seller, deal in such articles | 526 |
or otherwise by their respective occupations, or by their | 527 |
respective avocations as collectors, speculators, or investors, | 528 |
hold themselves out as having knowledge or skill peculiar to such | 529 |
articles or the practices involved in their purchase or sale; | 530 |
(B) Licensees who obtain licenses under sections 1321.01 to | 531 |
1321.19 of the Revised Code or registrants who obtain certificates | 532 |
of registration under sections 1321.51 to 1321.60 of the Revised | 533 |
CodeAny person doing business under the laws of this state or the | 534 |
United States relating to any broker-dealer, commodity futures | 535 |
commission merchant, or commodity trading advisor or agent duly | 536 |
registered and regulated by the division of securities under | 537 |
Chapter 1707. of the Revised Code or the United States commodity | 538 |
futures trading commission under 7 U.S.C. 1 et seq.; | 539 |
(3) The person maintains a fixed place of business in this | 555 |
state at which the person regularly exhibits articles of jewelry | 556 |
and silverware that are for sale at retailAny transactions | 557 |
involving the sale or transfer of gold, silver, platinum, or other | 558 |
precious metals or jewels and jewelry of any description, | 559 |
including watches, by a wholesale jeweler to a retail jeweler or | 560 |
licensed dealer; | 561 |
(4) The person establishes to the satisfaction of the | 562 |
superintendent of financial institutions or the chief or head of | 563 |
the local police department, upon their request, that the person's | 564 |
purchases of silverware and articles of jewelry that are made of | 565 |
or contain gold, silver, platinum, or other precious metals or | 566 |
jewels are incidental to the person's primary business as | 567 |
described in division (E)(1) of this section. Such purchases are | 568 |
"incidental" if: | 569 |
Sec. 4728.12. (A) A person exempt from licensing under | 592 |
division (E) or (F) of section 4728.11 of the Revised Code, and | 593 |
who in the ordinary course of the person's business obtains | 594 |
ownership by purchase of articles made of or containing gold, | 595 |
silver, platinum, or other precious metals or jewels and jewelry | 596 |
of any description, including watches, from the public, shall | 597 |
maintain at each business location for at least the twelve months | 598 |
immediately succeeding any such transaction a record that shall | 599 |
include the following: | 600 |
As used in this divisionsection, "purchase" does not include | 614 |
obtaining title to an article that is accepted as a trade-in by a | 615 |
person exempt from licensing under division (E) or (F) of section | 616 |
4728.11 of the Revised Code when the transaction involves a retail | 617 |
sale of an article of equal or greater value and the value of the | 618 |
trade-in is used as all or a portion of the purchase price, nor | 619 |
does "purchase" include any purchase made under the supervision of | 620 |
a probate court as provided under section 2113.40 of the Revised | 621 |
Code. | 622 |
(B) No person exempt from licensing under division (E) or (F) | 623 |
of section 4728.11 of the Revised Codeto whom division (A) of | 624 |
this section applies shall purchase any article that is made of or | 625 |
contains gold, silver, platinum, or other precious metals or | 626 |
jewels and jewelry of any description, including watches, from any | 627 |
individual whom the person knows or has reason to believe is under | 628 |
eighteen years of age. | 629 |
(C) Within sixty days after opening a new business location, | 630 |
anyAny person exempt from licensing under division (E) or (F) of | 631 |
section 4728.11 of the Revised Codeto whom division (A) of this | 632 |
section applies shall notify in writing the chief or head of the | 633 |
police department having local law enforcement agency having | 634 |
jurisdiction in the place where the business is located of the | 635 |
location of the records the person maintains pursuant to division | 636 |
(A) of this section. These records shall be available during | 637 |
normal business hours for inspection by the superintendent of | 638 |
financial institutions or the superintendent's designee, or by the | 639 |
chief or head of the local
police department or the chief's or | 640 |
head's designeelaw enforcement agency. | 641 |
(1) Upon the criminal conviction
shallof a licensee or any | 647 |
employee, manager, officer, director, shareholder, member, or | 648 |
partner of a licensee for a violation of this chapter, suspend the | 649 |
license of the licensee without a prior hearing to protect the | 650 |
public interest and subsequently revoke anythe license | 651 |
theretofore issued to the person, firm, partnership, corporation, | 652 |
or association. Thein accordance with the provisions of Chapter | 653 |
119. of the Revised Code. | 654 |
(2) Upon the criminal conviction of a licensee or any | 655 |
employee, manager, officer, director, shareholder, member, or | 656 |
partner of the licensee for the violation of any provision of | 657 |
Title XXIX of the Revised Code or under federal law for theft, | 658 |
receiving stolen property, or money laundering, suspend the | 659 |
license of the licensee without a prior hearing to protect the | 660 |
public interest and subsequently revoke the license of the | 661 |
licensee in accordance with the provisions of Chapter 119. of the | 662 |
Revised Code; | 663 |
Sec. 4728.14. Any person who is injured by the failure of a | 687 |
person who is engaged in the business of purchasing articles that | 688 |
are made of or contain gold, silver, platinum, or other precious | 689 |
metals or jewels and jewelry of any description, including | 690 |
watches, to comply with this chapter may commence a civil action | 691 |
to recover compensatory damages from such person. In any action | 692 |
under this section, the court may award punitive damages or | 693 |
reasonable attorney's fees to a prevailing plaintiff. | 694 |
Sec. 4728.16. (A) Every sale, transfer, or hypothecation of | 695 |
any stock, security, membership, partnership, or other equitable, | 696 |
beneficial, or ownership interest in a person licensed as a | 697 |
precious metals dealer, in an amount representing a ten per cent | 698 |
or greater equitable, membership, partnership, beneficial, or | 699 |
other ownership interest in the licensee, must be approved in | 700 |
writing by the superintendent of financial institutions prior to | 701 |
the sale, transfer, or hypothecation of the interest in the | 702 |
licensee. | 703 |
Section 2. That existing sections 4728.01, 4728.02, 4728.03, | 727 |
4728.04, 4728.05, 4728.06, 4728.07, 4728.08, 4728.09, 4728.10, | 728 |
4728.11, 4728.12, 4728.13, 4728.14, and 4728.99 of the Revised | 729 |
Code are hereby repealed. | 730 |