LICENSING JEWELERS AND COIN DEALERS

You asked if any states license jewelers and coin dealers and, if so, for a sample of their licensing fees and regulations. For a summary of regulation of pawnbrokers, see OLR Report 2009-R-0181. For a summary of retention periods for precious metal dealers, see OLR Report 2008-R-0545.

We were unable to identify any states that license jewelry stores devoted to 'first-hand' sale of jewelry. Fifty jurisdictions, including Connecticut, Puerto Rico, the Virgin Islands, and Washington, D.C. regulate secondhand jewelers and coin dealers, in some way, such as licensing, anti-fraud, counterfeiting, or regulation of certain activities. Many of the states require secondhand jewelry and coin dealers to obtain a permit through the municipality in which the dealer does business. The municipalities are authorized to set permit fees, but the state maintains requirements regarding recordkeeping, state and local police accessibility, and holding periods.

In Connecticut, anyone who is in the business of buying gold; silver; items plated with gold, silver, or platinum; watches; jewelry; precious stones; or coins must be licensed by the chief of police, or if there is none, the first selectman of the municipality in which they do business. Fees are set by the licensing municipality.

Under CGS § 21-100, a “precious metal and stone dealer” is anyone who is in the business of buying gold; silver; items plated with gold, silver, or platinum; watches; jewelry; precious stones; or coins. Manufacturers are exempt. The law requires that these dealers be licensed by the chief of police, or if there is none, the first selectman of the municipality in which they do business. Licenses may be revoked for cause and licensing authorities may not issue them to anyone convicted of a felony. The licensing authority may require an applicant to submit to state and national criminal history records checks. Unlike pawnbrokers, precious metal and stone dealers are not required to retain purchased goods for a specified period.

Precious metal and stone dealers must safeguard against receiving and disposing of stolen goods, a form of larceny. Specifically, they must demand positive identification from sellers. They must also keep records of each transaction, including a description of the goods, the price paid, the seller's name and address, the type of identification presented, and the day and time the goods were received. The information must be written down at the time the transaction takes place. Any state or municipal police officer may have access to the required records and inspect the business establishment and the goods purchased or received.

Precious metal and stone dealers cannot purchase goods from a minor who is not accompanied by a parent or guardian. They must pay for goods by check, draft, or money order. Cash may not be transferred to either party in the course of a transaction. They must give sellers receipts containing the same information they are required to keep, the amount paid for the goods, and the business's name and address.

The licensing authority may require dealers to make a weekly sworn statement describing the goods received during the week. These statements are not subject to disclosure under the Freedom of Information Act.

We were able to find laws, regulations, or both regarding secondhand dealers of jewelry, precious metals, coins, or some combination of the three in all but three states. We could not identify laws in Kentucky, Montana, and Wyoming regulating secondhand dealers.

Many states require secondhand jewelry and coin dealers to obtain a permit through the municipality in which the dealer does business. In some states, like Connecticut, the municipalities are authorized to set permit fees. In others, like Kansas, the state may set fees. Kansas requires licensees to pay an annual renewal fee of $25 to the clerk in the jurisdiction in which they are licensed. License applications must be in writing stating (1) the full name and place of residence of the applicant, (2) the address of the places where the business is to be conducted, (3) the hours and days of the week during which the applicant proposes to engage in business, and (4) other information as necessary to determine the applicant's qualifications for a license. Each applicant must also submit a statement that the applicant holds a valid registration certificate issued by the director of revenue and a detailed inventory and description of all goods, wares, merchandise, precious metals, or other property held in pledge or for sale at the time of application at each place of business, indicating whether the property was received in pledge, purchased as secondhand merchandise, or precious metal purchased for resale (K.S.A. §§ 16-707).

Generally, states can set requirements regarding recordkeeping, state and local police accessibility, and holding periods. In Washington, property bought or received on consignment by a secondhand may not be removed from the permanent place of business within 30 days, unless returned to the owner. Property must be open to inspection to any commissioned law enforcement officer of the state during all ordinary business hours (Rev. Code Wash. (ARCW) § 19.60.055).

Some states regulate markings, fraud, and other activities by dealers through anti-counterfeiting statutes. For example, California law prohibits individuals from, with the intent to defraud, (1) counterfeiting any of the species of gold or silver coin or any kind or species of gold dust, gold or silver bullion, or bars, lumps, pieces, or nuggets; (2) selling, passing, or paying with counterfeit product; or (3) procuring counterfeit product to be passed. The law punishes violators with two, three, or four years' imprisonment (Cal Pen Code § 477). Hawaii law prohibits manufacturers, dealers, wholesalers, and retailers of gold or silver from manufacturing, selling, importing, or exporting gold or silver stamped with any mark or word indicating that gold or silver or alloy in the article is of a greater degree of fineness than the actual fineness of quality (Haw. Rev. Stat. § 482D-1).

Table 1 shows the regulated activities by jurisdiction, including the statutory or regulatory citation.


*Jurisdiction*	*Citation*	*Subject Matter*
DC	Statutes:
	D.C. Code § 47-2837	Secondhand Dealers
	Regulations:
	CDCR 16-1002	Dealers Receiving Jewelry or Precious Metals
FL	Statutes:
	Fla. Stat. §§ 538.03 through 538.17	Secondhand Dealers
	Fla. Stat. §§ 831.15 through 831.19	Counterfeiting coins
	Regulations:
	12A-1.0371, F.A.C.	Sales of Coins, Currency, or Bullion
GA	Statutes:
	O.C.G.A. §§ 43-37-1 through 43-37-7	Dealers in Precious Metals and Gems
	O.C.G.A. §§ 43-49-1 through 43-49-5	Dealers In Used Watches
	Regulations:
	Ga. Comp. R. & Regs. r. 560-12-2-.108	Bullion, Coins, or Currency
HI	Statutes:
HI	HRS §§ 482D-1 through 482D-11	Gold and Silver Stamping
ID	Statutes:
	Idaho Code §§ 18-3607 through 18-3610	Counterfeiting Coin or Bullion; Possession of Counterfeit Coin and Apparatus
	Regulations:
	IDAPA 04.02.02.052	Precious Stones and Mineral Promotions
	IDAPA 35.01.02.039	Sales and Purchases of Bullion, Coins, or Other Currency
IL	Statutes:
	720 ILCS 5/17-4	Deceptive Altering or Sale of Coins
	720 ILCS 290/1 through 720 ILCS 290/3	Deceptive Sale of Gold and Silver
	815 ILCS 395/0.01 through 815 ILCS 395/11	Platinum Sales
	815 ILCS 410/0.01 through 815 ILCS 410/5	Second-hand Watch
	Regulations:
	35 Ill. Adm. Code 307.3123 through 35 Ill. Adm. Code 307.3124	Primary Precious Metals and Mercury; Secondary Precious Metals
	35 Ill. Adm. Code 307.3112	Secondary Silver
	86 Ill. Adm. Code 130.1910	Antiques, Curios, Art Work, Collectors' Coins


*Jurisdiction*	*Citation*	*Subject Matter*
IN	Statutes:
	Burns Ind. Code Ann. § 23-2-6-15	Precious Metal Defined
	Burns Ind. Code Ann. §§ 24-4-3-1 through 24-4-3-5	Second-Hand Watches
	Burns Ind. Code Ann. §§ 25-37.5-1-1 through 25-37.5-1-7	Valuable Metal Dealer Regulation
	Burns Ind. Code Ann. § 28-6.1-6-2	Buying and Selling Exchange, Coin, and Bullion
IA	Statutes:
	Iowa Code §§ 556E.1 through 556E.10	Gold and Silver Alloy
	Regulations:
	701 IAC 15.18(422,423)	Coins and Other Currency Exchanged at Greater Than Face Value
	701 IAC 16.2(422)	Used or Secondhand Tangible Personal Property
	701 IAC 213.5(423)	Antiques, Curios, Old Coins, Collector's Postage Stamps, and Currency Exchanged
	701 IAC 18.19(422,423)	Antiques, Curios, Old Coins
KS	Statutes:
	K.S.A. §§ 16-706 through 16-722	Regulation of Pawnbrokers and Precious Metal Dealers
	Regulations:
	K.A.R. § 92-19-56	Coins, Bullion, Stamps, Antiques, Collectables, Commemoratives
LA	Statutes:
	La. R.S. 9:4701 through 9:4703	Jewelry, Gems, and Watches
	La. R.S. 37:1864.2	Purchase of Precious Metals and Stones from Minors
	Regulations:
	LAC 13:I.547	Secondhand Items
	LAC 16:III.511	Misrepresentation of Old, Used, or Secondhand Goods
ME	Statutes:
ME	14 M.R.S. § 4801	Mode of Sale for Coins
MD	Statutes:
	Md. BUSINESS REGULATION Code Ann. §§ 12-101 through 12-601	Secondhand Precious Metal Object Dealers
	Md. COMMERCIAL LAW Code Ann. §§ 14-601 through 14-608	Gold and Silver
	Md. TAX-GENERAL Code Ann. § 11-214.1	Precious Metal Bullion and Coins
	Regulations:
	COMAR 09.25.01.01 through 09.25.02.02	Secondhand, Precious Metals, and Gem Dealers and Pawnbrokers


*Jurisdiction*	*Citation*	*Subject Matter*
MA	Statutes:
	ALM GL ch. 266, § 77 through 266, § 78	Sale of Sterling, Coin Silver, and Gold
	ALM GL ch. 266, § 142A	Records of Purchase or Sale of Gold, Silver, and Platinum
	ALM GL ch. 267, § 17 through 267, § 18	Counterfeiting Coin
MI	Statutes:
	MCLS § 205.54s	Sale of Investment Coins and Bullion
	MCLS § 205.94u	Investment Coins and Bullion: Storage, Use, Tax
	MCLS §§ 445.481 through 445.492	Precious Metal and Gem Dealers
	MCLS §§ 750.260 through 750.261	Coins; Counterfeiting
	MCLS §§ 750.287 through 750.288	Fraud in Sale of Sterling or Coin Silver Marked Articles
	MCLS §§ 750.537 through 750.538	Copper or Silver Ore; Barter, Transfer, or Sale; Violation as Misdemeanor; Penalty
	Regulations:
	MICH. ADMIN. CODE R 205.108	Philatelists; Antiques, Curios, and Old Coins
MN	Statutes:
	Minn. Stat. §§ 325F.73 through 325F.744	Precious Metals
	Minn. Stat. § 609.526	Precious Metal Dealers; Receiving Stolen Property
	Regulations:
	Minn. R. 2875.8170	Investment Gems
MS	Statutes:
	Miss. Code Ann. §§ 97-21-13 through 97-21-17	Counterfeiting Coins; Gold and Silver Coins of United States and Foreign Countries
	Miss. Code Ann. § 97-21-59	Uttering Counterfeit Instrument or Coin
MO	Statutes:
	§ 144.815 R.S.Mo.	Bullion and Investment Coins: Sales and Use Tax
	§ 408.010 R.S.Mo.	Silver a Legal Tender
NE	Statutes:
	R.R.S. Neb. § 8-1715	Precious Metal; Defined
	R.R.S. Neb. § 69-206	Pawned or Secondhand Goods; Restrictions on Disposition; Jewelry Defined


*Jurisdiction*	*Citation*	*Subject Matter*
NV	Statutes:
	Nev. Rev. Stat. Ann. § 91.140	Precious Metal; Defined
	Nev. Rev. Stat. Ann. §§ 205.180 through 205.185	Counterfeiting, Possessing, or Receiving Gold Dust, Bars or Other Articles
	Nev. Rev. Stat. Ann. § 647.110	Dealers in Secondhand Materials; Record and Inspection
	Regulations:
	NAC 372.170	Coins and Stamps
NH	Statutes:
NH	RSA 339:31 through 339:34	Products Marked as Sterling
NJ	Statutes:
	N.J. Stat. §§ 51:5-1 through 51:6A-8	Gold, Silver, Platinum, and Alloys
	N.J. Stat. §§ 45:22-35 through 45:22-40	Secondhand Watches
	Regulations:
	N.J.A.C. 13:47C-6.1 through 13:47C-6.3	Requirements for Security Bond for Transient Buyers of Precious Metals
NM	Statutes:
	N.M. Stat. Ann. § 3-18-24	Licensing and Regulating Secondhand and Junk Stores
	Regulations:
	3.19.4.9 NMAC	Value of Copper, Lead, Zinc, Gold, and Silver
NY	Statutes:
	NY CLS Gen Bus § 47	Secondhand Business
	NY CLS Gen Bus §§ 229-a through 229-j	Silver, Gold, and Diamonds
	NY CLS Gen Bus §§ 230 through 238	Platinum Stamping
	NY CLS Gen Bus §§ 239 through 239c	Regulation of Appraisers of Jewelry, Art, Watches, Objects Made From Precious Stones or Metals
	NY CLS Gen Bus §§ 418 through 429	Licensing of Coin Processors
	Regulations:
	20 NYCRR § 528.29	Precious Metal Bullion: Sales
NC	Statutes:
	N.C. Gen. Stat. §§ 66-163 through 66-174	Regulation of Precious Metal Businesses
	N.C. Gen. Stat. §§ 80-40 through 80-44	Stamping of Gold and Silver Articles
	N.C. Gen. Stat. § 14-13	Counterfeiting Coin
	Regulations:
	17 N.C.A.C. 7B.0111	Stamps, Coins, Etc.
	17 N.C.A.C. 7B.3004	Secondhand Property


*Jurisdiction*	*Citation*	*Subject Matter*
ND	Regulations:
	N.D. Admin. Code 13-04-02-13	Receipts for Collection of Currency and Coin
	N.D. Admin. Code 33-24-05-230	Requirements for Recyclable Materials Utilized for Precious Metal Recovery
	N.D. Admin. Code 81-04.1-01-17	Used or Secondhand Tangible Personal Property
	N.D. Admin. Code 81-04.1-03-05	Sales of Legal Tender Coins, Currency, and Precious Metals
OH	Statutes:
	ORC Ann. 4728.01 through 4728.99	Precious Metals Dealers
	ORC Ann. 4737.011	Secondhand Dealers; Exemption for Dealers in Precious Metals or Jewels
	ORC Ann. 1109.63	Coin and Bullion Transactions
	ORC Ann. 1329.26 through 1329.27	Sale of Goods Marked "Sterling" or "Sterling Silver"; Sale of Goods Improperly Marked "Coin" or "Coin Silver"
	Regulations:
	OAC Ann. 1301:8-6-01 through 1301:8-6-06	Precious Metal Dealers
OK	Statutes:
	13 Okl. St. § 134	Precious Metals and Other Valuables -- Liability for Loss or Injury
	15 Okl. St. § 611 through 15 Okl. St. § 615	Sale of Secondhand Watches
	59 Okl. St. § 1521 through 59 Okl. St. § 1532	Precious Metal and Gem Dealers
	Regulations:
	O.A.C. §§ 160:60-1-1 through 160:60-9-6	Precious Metal and Gem Dealers
	O.A.C. § 710:65-19-50	Coins and Bullion
	O.A.C. § 710:65-19-306	Secondhand Stores
OR	Statutes:
OR	ORS §§ 695.210 through 695.990	Watch Dealers


*Jurisdiction*	*Citation*	*Subject Matter*
PA	Statutes:
	53 P.S. § 25251 through 53 P.S. § 25257	Secondhand Dealers
	73 P.S. § 1931 through 73 P.S. § 1942	Purchase and Sale of Precious Metals
	Regulations:
	70 Pa. Code § 37.1 through 70 Pa. Code § 37.2	Precious Metals
	37 Pa. Code § 501.1 through 37 Pa. Code § 501.11	Purchase and Sale of Precious Metals
PR	Statutes:
PR	10 L.P.R.A. § 2201 through 10 L.P.R.A. § 2211	Purchase and Sale of Precious Metals and Stones Regulation
RI	Statutes:
	R.I. Gen. Laws §§ 6-11-1 through 6-11-8	Gold and Silver Products
	R.I. Gen. Laws §§ 6-11.1-1 through 6-11.1-14	Purchase and Sale of Precious Metals
	R.I. Gen. Laws §§ 6-13.2-1 through 6-13.2-8	Comparison Price Advertising for Precious Metal and Stones
	R.I. Gen. Laws § 19-26-9	Precious Metals -- Acts Tending to Destroy Identity of Articles Pawned
	Regulations:
	CRIR 30-000-004	Rules and Regulations for Precious Metals
SC	Statutes:
	S.C. Code Ann. §§ 39-15-20 through 39-15-40	Fraud in Sale of Goods Marked "Sterling", "Coin" or “Coin Sterling”
	S.C. Code Ann. §§ 40-54-10 through 40-54-100	Dealers in Precious Metals
	Regulations:
	S.C. Code Regs. 61-79.266, SubPart F	Recyclable Materials Utilized for Precious Metal Recovery
SD	Statutes:
	S.D. Codified Laws § 9-34-9	Regulation of Secondhand and Junk Stores
	Regulations:
	ARSD 64:06:03:39	Secondhand Stores
TN	Statutes:
TN	Tenn. Code Ann. §§ 38-1-201 through 38-1-204	Scrap Jewelry and Metal Dealers


*Jurisdiction*	*Citation*	*Subject Matter*
TX	Statutes:
	Tex. Bus. & Com. Code §§ 17.18 through 17.23	Regulating the Sale or Transfer of Secondhand Watches
	Tex. Occ. Code §§ 1956.051 through 1956.070	Sale of Crafted Precious Metal to Dealers
	Tex. Tax Code § 151.336	Certain Coins and Precious Metals
	Regulations:
	30 TAC § 335.241	Recyclable Materials Utilized for Precious Metal Recovery
	34 TAC § 3.336	Gold, Silver, Coins, and Currency
UT	Statutes:
	Utah Code Ann. §§ 76-10-900.5 through 76-10-926	Regulation of Metal Dealers
	Utah Code Ann. § 13-32a-104	Secondhand Merchandise; Register: Contents and Identification of Items
VT	Statutes:
	13 V.S.A. § 1809 through 13 V.S.A. § 1810	Counterfeiting Coin; Tools for Counterfeiting Coin
	13 V.S.A. § 1811	Making Imitation of Gold or Silver
VA	Statutes:
	Va. Code Ann. § 18.2-170	Forging Coin or Bank Notes
	Va. Code Ann. § 18.2-173	Possessing Forged Coin or Bank Notes
	Va. Code Ann. § 18.2-218	Failure to Indicate Goods are Seconds, Irregulars, or Secondhand
	Va. Code Ann. §§ 18.2-233 through 18.2-235	Sale of Goods Marked "Sterling" and "Sterling Silver"; Sale of Goods Marked "Coin" and "Coin Silver"; Regulating Sale of Merchandise Made of Gold
	Va. Code Ann. §§ 54.1-4100 through 54.1-4111	Precious Metals Dealers
	Va. Code Ann. §§ 59.1-131 through 59.1-136	Watches
VI	Statutes:
VI	27 V.I.C. § 308 through 27 V.I.C. § 320	Traders in Gold, Silver and Other Valuable Items
WA	Statutes:
	Rev. Code Wash. (ARCW) §§ 9.16.100 through 9.16.140	Use of the Words Sterling Silver, Sterling, Coin Silver, and Gold
	Rev. Code Wash. (ARCW) § 18.11.075	Secondhand Property, When Exempt
	Rev. Code Wash. (ARCW) §§ 19.60.010 through 19.60.901	Secondhand Dealers
	Regulations:
	WAC § 458-20-248	Sales of Precious Metal Bullion and Monetized Bullion


*Jurisdiction*	*Citation*	*Subject Matter*
WV	Statutes:
	W. Va. Code § 61-3-51	Precious Metal and Gem Dealers; Records; Prohibited Acts
	W. Va. Code § 47-6-4	Silver Coin as Legal Tender
WI	Statutes:
	Wis. Stat. §§ 134.25 through 134.33	Misbranding of Gold, Gold Plated, Silver, Sterling Silver, Coin Silver, and Platinum Articles
	Wis. Stat. § 134.71	Pawnbrokers and Secondhand Article and Jewelry Dealers
	Regulations:
	Wis. Adm. Code Tax 11.78	Stamps, Coins and Bullion
	Wis. Adm. Code NR 273.04 through NR 273.046	Precious Metals

Source: Lexis Nexis, 50 State Comparative Legislation/Regulations, Precious Metal and Gem Dealing (July 2009).


November 4, 2009		2009-R-0395
LICENSING JEWELERS AND COIN DEALERS

By: Meghan Reilly, Legislative Analyst II


*Jurisdiction*	*Citation*	*Subject Matter*
AL	Statutes:
	Code of Ala. §§ 8-14-22	Sale of Gold, Silver, Watches, Jewelry, China, etc
	Regulations:
	Ala. Admin. Code r. 810-6-2-.27	Gold, Coin, And Bullion Sales
AK	Statutes:
AK	Alaska Stat. § 27.10.090	Precious-Metal Placers
AZ	Statutes:
	A.R.S. § 44-1215	Salting Gold or Silver Ore to Defraud
	A.R.S. § 44-1601	Dealers in Precious Items
AR	Statutes:
AR	A.C.A. § 17-23-101	Buyers of Precious Metals
CA	Statutes:
	Cal Pen Code § 343	Gold Buyers Required to Produce Register or Exhibit Articles Pledged
	Cal Pen Code § 477	Counterfeiting Coin, Bullion, Bars, Lumps, or Prices; Gold or Silver Coins
	Cal Bus & Prof Code § 21500	Secondhand Goods; Watches
	Cal Bus & Prof Code § 21626	Secondhand Dealer; Coin Dealer
	Cal Bus & Prof Code § 21628	Reports by Secondhand Dealers and Coin Dealers
	Cal Bus & Prof Code §§ 22100 through 22181	Precious Metal Marking
	Cal Fin Code § 7300	Purchase and sale of gold or silver bullion and related instruments or securities
	Cal Corp Code § 29515	Precious Metal
	Regulations:
	4 CCR 1316	Secondhand Merchandise
	18 CCR 1599	Coins and Bullion
CO	Statutes:
	C.R.S. 11-37.5-126 through 11-37.5-127	Precious Metals Accounts
	C.R.S. 11-61-101	Gold and Silver Coin
CT	Statutes:
	Conn. Gen. Stat. §§ 21-100 through 21-101	Purchasers of Precious Metals and Stones
	Conn. Gen. Stat. §§ 53-324 through 53-428	Articles Purporting to be Made of Gold to be Marked; Articles Made of Gold or Alloy; False Representations; Sterling Silver Defined; Penalty; Coin Silver Defined.
DE	Statutes:
DE	6 Del. C. § 3701 through 6 Del. C. § 3706	Sale of Secondhand Watches