BILL NUMBER: S6444
SPONSOR: HARCKHAM
 
TITLE OF BILL:
An act to amend the general business law, in relation to recordkeeping
requirements for second-hand dealers and pawnbrokers
 
PURPOSE:
Creates auditing authority and universal record keeping requirements for
pawn and second-hand dealer purchases in New York, effectively moderniz-
ing the businesses.
 
SUMMARY OF PROVISIONS:
Section 1 amends section 41 of the general business law, as amended by
chapter 669 of the laws of 2022, to allow second-hand dealers and pawn-
brokers to comply with the licensing requirements of section 41 via the
internet.
Section 2 amends section 43 of the general business law, as amended by
chapter 867 of the laws of 1986, to allow collateral loan brokers to
maintain an electronic record of transactions and related information
rather than written in a book.
Section 3 amends section 45 of the general business law, as amended by
chapter 321 of the laws of 1983, to allow for inspection of transactions
by public officials on electronic record, to limit the purpose of
inspection to compliance verification, and to limit the scope of
inspection to the last twenty items pledged except in cases of warrants,
subpoenas, or other lawful process.
Section 4 amends the second undesignated paragraph of section 47 of the
general 24 business law, as added by chapter 534 of the laws of 2007,
expands the compliance requirements for collateral loan brokers to state
law as well as local.
Section 5 amends the general business law to add a new article 5-B,
recordkeeping requirements for second-hand dealers and pawnbrokers.
Article 5-B establishes requirements for reporting to the Secretary of
State & maintenance of electronic records, and establishes penalties for
violations.
Section 6 states the effective date.
 
JUSTIFICATION:
Privacy rights extended to customers of pawnbrokers and second-hand
dealers parallel the privacy rights extended by Congress to traditional
banking customers in the Right to Financial Privacy Act of 1978 (RFPA).
With very limited exceptions, consumer banking transactions arc subject
to privacy protections and governmental review is subject to issuance of
a warrant, subpoena or other lawful process.
Identifying information respecting individual items is the subject of
the centralized reporting system for second-hand transactions. At the
same time, while personal information respecting pledgors and sellers of
second-hand items is secured at the outset of each transaction, and the
information is retained by each shop for not less than six. years, the
information is not subject to centralized reporting.
This legislation establishes central database within the Department of
State to assist with the search for misappropriated items and authorizes
periodic administrative inspections of pawnbrokers and second-hand deal-
ers aimed at ensuring that licensees are compliant with record keeping
and other statutory and regulatory requirements striking the right
balance wherein blanket search techniques are focused on items and not
people.
 
LEGISLATIVE HISTORY:
2023-2024: S8130 - Died in Consumer Protection
 
FISCAL IMPLICATIONS:
TBD.
 
EFFECTIVE DATE:
This act shall take effect on the one hundred eightieth day after it
shall have become a law. Effective immediately, the addition, amendment
and/or repeal of any rule or regulation necessary for the implementation
of this act on its effective date are authorized to be made and
completed on or before such effective date

Statutes affected:
S6444: 41 general business law, 43 general business law, 45 general business law, 47 general business law