Public Safety and Security Committee

JOINT FAVORABLE REPORT

Bill No.:

SB-928

Title:

AN ACT CONCERNING PRECIOUS METALS OR STONES DEALERS.

Vote Date:

3/7/2013

Vote Action:

Joint Favorable Substitute

PH Date:

2/28/2013

File No.:

114

SPONSORS OF BILL:

Public Safety and Security Committee

REASONS FOR BILL:

For purposes of recordkeeping and withholding of property purchased, the bill subjects secondhand dealers to the same requirements as pawnbrokers.

SUBSTITUTE LANGUAGE:

Substitute language exempts the purchase of bullion or coins from the new requirements.

RESPONSE FROM ADMINISTRATION/AGENCY:

None stated.

NATURE AND SOURCES OF SUPPORT:

Chad LaPlante, Yankee Peddler & Pawn supports the bill. It would add consistency to the industry, provide law enforcement with additional tools to apprehend criminals, and makes good sense for business.

Michael Martorelli supports the bill. It would require precious metals deals to follow the same holding period as secondhand dealers and pawnbrokers.

Steven Goodman supports this bill. It will provide protection to dealers, regulate the industry and provide added protection to businesses. However, he disagrees with the record-keeping requirement as it would be cumbersome.

Jay Sargent, President, Connecticut Association of Pawnbrokers, Inc. supports the bill. He stated that they have worked with law enforcement over the years and believe that the bill provides an additional resource for law enforcement to recover stolen property.

Stephen Lombardo, Express Prawn supports the bill. He is an established business owner and advocates for passage as it requires secondhand dealers and pawnbrokers to follow the same requirements.

NATURE AND SOURCES OF OPPOSITION:

Allen G. Berman opposes the bill as it would increase the cost of doing business in Connecticut. The bill would result in an increase in paperwork, a loss of jobs due to lower profit margins, customers electing not to sell their items in-state and/or going ” underground” to sell their bullion and coins.

Bob Walter, Sam Sloat Coins, Inc. opposes the bill because it is too broad and includes coins and bullion. He stated that it would result in potential customers traveling out of state to sell to other dealers, turn businesses into speculators, and the ten day holding period would negatively impact their profit margin.

Reported by: Laurel A. Coleman

Date: March 14, 2013