BILL NUMBER: S554
SPONSOR: LIU
 
TITLE OF BILL:
An act to amend the general business law, in relation to recordkeeping
requirements for second-hand dealers and pawnbrokers
 
PURPOSE OR GENERAL IDEA OF BILL:
An act to amend the general business law, in relation to the establish-
ment of an online system for inventorying the goods offered for sale at
pawnshops and secondhand goods shops in the State of New York to hasten
the return of stolen property.
 
SUMMARY OF SPECIFIC PROVISIONS:
Section 1: Adds a new article 5-B to the General Business Law.
Section 57: Requires dealers of second-hand articles who deal in the
purchase or sale of precious metals, used electrical appliances, or
electronic equipment to make available the records required by the law
to the secretary of state.
Section 57-a: 57-a(I) and (2): Requires dealers of second-hand articles
who deal in the purchase or sale of precious metals, used electrical
appliances, or electronic equipment to electronically record the previ-
ously mentioned information as specified by the
Secretary of State by rule or regulation. The electronic record may
include the real-time sharing of records through the use of an Internet
website designated by the secretary of state. The electronic record
shall be kept for at least six years from the date of purchase or sale.
The electronic record may include the date, time, location, and type of
transaction; the name of the individual conducting the transaction for
the dealer; identifying information of the person offering the property
purchased by the dealer, including a digital photograph of the owner and
digital photograph or scanned copy of identification used; identifying
information of the person purchasing property sold by the dealer; and an
accurate description of each article purchased or sold and one or more
digital photographs reasonably capturing the likeness of the article.
57-a(2): the dealer of second-hand articles who deals in the purchase or
sale of pawnbroker tickets shall also create an electronic record, for
which the Secretary of State shall also promulgate rules or regu-
lations'. These records must be maintained for at least 6 years from the
date of purchase or sale. Additionally, the record must include the name
and address of the person who issued the ticket; the pledge number of
the pawn ticket; the name and address of the pledgor; the amount loaned
or advanced as it appears on the ticket; the sum paid or received for
the pawn ticket or for the redeemed article; a description of the arti-
cle as appears on the ticket, and pictures of the article;
57-a(3):The dealers also shall be required to keep and maintain in good
working order the electronic equipment necessary to create and maintain
the electronic records required by this section, including an internet
connection, electronic signature pad, and digital camera.
57-a(4): The books and records shall be open to inspection by a police
officer, Secretary of State, any departmental inspector or Judge, and
any person authorized by the Secretary of State or Judge.
57-a(5): Nothing in this section shall be construed to affect or super-
sede any recordkeeping requirement imposed by or pursuant to any other
applicable state or local law.
57-b: Every pawnbroker shall create an electronic record, to be kept for
at least 6 years, which shall include the date, time, and place of tran-
saction; the name of the individual conducting the transaction for the
pawnbroker; identifying information of the pledgor; an accurate
description of each article pawned or pledged; the pledge number of the
pawn ticket; the amount loaned and the rate of interest to be paid;
identifying information of the person redeeming the article; and a
description of the article purchased or sold. The pawnbroker must keep
and maintain in good working order the electronic equipment needed to
create and maintain the records. The electronic records are open to
inspection by the state Attorney General, State Comptroller, any police
officer, departmental inspector, Secretary of State, Judge of the Crimi-
nal Court, or any person authorized by the Secretary of State or Judge.
Nothing in this section is intended to affect or supersede any other
recordkeeping requirement imposed by or pursuant to any other applicable
state or local law.
57-c: The penalty for a violation of this section or rules promulgated
thereunder are nbt less than $25.00 nor more than $500, or imprisonment
for 15 days or less, or both. Additionally, a civil penalty of $100 per
violation can be recovered in a civil action. The Attorney General is
authorized to bring an injunction proceeding to restrain or enjoin any
violation of this article.
Section 2. Provides for the effective date.
 
JUSTIFICATION:
Pawnbrokers and second-hand dealers in New York are licensed by munici-
palities, and their recordkeeping practices are monitored by local law
enforcement authorities. These local law enforcement officers must
routinely visit pawnshops and second-hand dealer locations to inspect
the log book containing a record of each transaction to ensure that they
are completed accurately and correctly reflect the property present in
the store. In order to address the cumbersome nature of current record-
keeping statewide, the State must encourage electronic recordkeeping,
such as with a web-based electronic data transfer service which would
serve as the repository of transaction records for pawnbrokers and
second-hand dealers. If enacted, this bill would require these types of
businesses to upload their transactions to such a website. Instead of
physically visiting the businesses to review and collect transaction
records, enforcement personnel are able to conduct a "virtual"
inspection by accessing the website and examining the entries. Enforce-
ment personnel continue to make physical inspections but the need to do
so is less frequent and is facilitated by the information that the
inspector or police officer has already reviewed. Transaction informa-
tion uploaded onto the online database includes serial numbers, photos,
and other information conclusively identifying the property, which is
capable of being cross-referenced against complaints of stolen property
as soon as the transaction is uploaded. The ability of the system to
conduct searches for stolen property items and to identify the purported
owner offering the property for sale or pawn has been successful in New
York City, resulting in hundreds of investigative leads that have led to
the recovery of the property and the arrest of the thieves.
The mandatory use of electronic recordkeeping for pawnbrokers and
second-hand dealers is growing, particularly among municipalities whose
resources are stretched to the limit. Cities including New York City,
Chicago, Philadelphia, Syracuse, and Rochester have all enacted local
laws. This bill would greatly facilitate both administrative efficiency
and crime reduction by providing a simple way to keep accurate trans-
action records. The results would be beneficial to those whose stolen
property is recovered.
 
PRIOR LEGISLATIVE HISTORY:
01/03/24 REFERRED TO CONSUMER PROTECTION
01/19/23 REFERRED TO CONSUMER PROTECTION
01/05/22 REFERRED TO CONSUMER PROTECTION
2020: S.2499 - Referred to Consumer Protection
 
FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
On the ninetieth day after it shall have become a law, provided, howev-
er, that the Secretary of the New York State Department of State shall
have the authority to promulgate any rules or regulations necessary for
its implementation, including the promulgation of any rules, or regu-
lations prior to such effective date.