Youngstown Daily Legal News

Bill seeks tougher standards for precious metal dealers

TIFFANY L. PARKS
Special to the Legal News
Published: June 1, 2012

Under Ohio’s current precious metal dealers law, Rep. Michael Henne said some jewelry thieves have gotten away with making a fast buck off of their illegal activities.

“My home was broken into last year and I was told I was probably wasting my time checking at pawn shops for the stolen jewelry because the thieves would take it to precious metal dealers instead since they can melt it down sooner and records requirements are very lax,” he said.

“We have all heard stories, including some very sad and traumatic ones. Clearly, this is a problem in our state.”

Henne, R-Clayton, has drafted House Bill 530 in hopes of combating the situation.

The proposed legislation would revise the licensing and records requirements, exemptions and penalties of the state’s precious metal dealers law.

HB 530 would modify the qualifications for a precious metals dealer’s license by increasing the amount of the required net worth or bond from $10,000 to $100,000. The bill also would usher in mandatory criminal records checks for applicants and require dealers to have owned or leased a fixed business location for at least one year or signed a lease for such a location for a minimum period of one year.

If the bill is signed into law, would-be dealers would be banned from advertising their willingness to purchase precious metals or jewels without a precious metals dealer license.

HB 530 would redefine a “precious metals dealer” as a person who is engaged in the business of purchasing articles made of or containing gold, silver, platinum or other precious metals or jewels of any description if, in any manner, including any form of advertisement, signage, electronic media, including electronic mail or other solicitation of customers, the person holds himself, herself or itself out to the public as willing to purchase such articles.

The bill was introduced into the legislature earlier this month and is before the House Judiciary and Ethics Committee.

“We need to act now to stop thieves from stealing jewelry and converting it into a quick payday at precious metal shops,” Henne said.

“HB 530 is a solution that will let law enforcement identify those who sell stolen precious metals and give them the evidence they need to put them away.”

Henne said anyone who buys precious metals or advertises to buy precious metals to Ohioans must be licensed by the Division of Financial Institutions in the Ohio Department of Commerce.

“Unfortunately, the theft of precious metals, such as gold, silver and platinum, has become all too common owed to the huge increase in the value of these materials,” he said, noting that on May 15 gold was selling for $1,553 per ounce.

“During September of last year, gold even went as high as $1,920 per ounce. The gold buying industry has grown drastically over the past decade. As the price of precious metals went up, so did the amount of thefts. Subsequently, the number of precious metal dealing shops increased also.”

Henne said Ohio has ranked high in metal theft claims.

“Whereas under Ohio law pawnbrokers are required to hold ail property until the expiration of 15 days after the purchase has been made, precious metal dealers have a much shorter required retention period of only five days,” he said.

HB 530 would increase that retention period to 15 days.

And while current provisions of the precious metal dealer law allow licensees to charge the true owner of stolen property, the bill specifies that dealers would be prohibited from charging true owners a larger amount than what the licensee paid for an item.

Henne said Ohio’s existing laws addressing precious metal dealers were drafted in the early 1980s, following the first big gold rush.

“It is obvious that the usual methods for tracking stolen goods through precious metal shops are not keeping up with the modern day gold rush,” he said, adding that HB 530 would charge dealers with recording information about purchases including a manufacturer’s name, serial or model numbers, identifying features or marks and the date and price of the purchase.

Under the bill, dealers would also have to record information about sellers, including the individual’s name, address, date of birth, a valid driver’s license number or other valid personal ID number and their physical description.

“This gives our police officers additional tools to help protect Ohioans from these thefts and to recover and return stolen items,” Henne said.

“Our goal of this legislation is not only to help police catch the bad guys, but to also assist victims in getting their possessions back and to protect legitimate owners and consumers.”

HB 530 is co-sponsored by Reps. Dennis Murray, D-Sandusky; John Adams, R-Sidney; Matt Huffman, R-Lima; Robert Sprague, R-Findlay; Bill Hayes, R-Granville; and Mike Foley, D-Cleveland.

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