A BILL TO BE ENTITLED
AN ACT to modernize the record keeping of precious metals purchases by dealers, to subject all dealers in precious metals to the same licensing and record‑keeping requirements by repealing the "ten percent or less of purchases" exemption from dealer permitting and regulation, to increase precious metal permitting fees, to require that a criminal record check be conducted on employees of precious metals dealers, and to make various other changes to the precious metals permitting statutes.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 66‑164 reads as rewritten:
"§ 66‑164.  Definitions.
 The following definitions apply in this Article:
(1)	 Dealer. – A person who  purchases precious metals from the  public, other than by an exempted transaction, in the form of jewelry, flatware, silver  services, or other forms and holds himself or herself out to the public by signs,  advertising, or other methods as engaging in such  purchases, including any independent contractor purchasing precious metals under any arrangement in any department  store.  Exempted transactions include (i) purchases directly from manufacturers or wholesalers of precious metals by permanently located retail merchants for their  inventories  and (ii) pawns or pledges of items made of precious metals under the provisions of Chapter 91A of the General Statutes and made to pawnbrokers as defined in G.S. 91A‑3.
(2)	 Local law enforcement agency. – The term means the following, as applicable:
a.	The county police force, if the dealer's business is located within a county with a police force and outside the corporate limits of a municipality.
b.	 The municipal police force, if the dealer's business is located within the corporate limits of a municipality having a police force.
c.	The county sheriff's office of the county in which the dealer's business is located, if neither sub‑subdivision a. nor b. of this subdivision applies.
(3)	 Precious metal. – Gold, silver, or platinum, as defined below, but excluding coins, medals, medallions, tokens, numismatic items, art ingots, or art bars. 
a.	 Gold. – Any item or article containing ten (10)  karats of gold or more which may be in combination or alloy with any other metal.
b.	 Silver. – Any item or article containing 925 parts per thousand of silver which may be in combination or alloy with any nonprecious metal or which is marked 'sterling'.
c.	 Platinum. – Any item or article containing 900 parts per thousand or more of platinum which may be in combination or alloy with any other metal.
"
SECTION 2.  G.S. 66‑165 reads as rewritten:
"§ 66‑165.  Permits required.
(a)	Except as provided in subsection (c), it shall be unlawful for any person to engage as a dealer in the business of purchasing precious metals either as a separate business or in connection with other business operations without first obtaining a permit for the business from the local law enforcement agency. The form of the permit and application therefor shall be as approved by the Department of Crime Control and Public Safety. The application shall be given under oath and shall be notarized. A 30‑day waiting period from the date of filing of the application is required prior to initial issuance of a permit. A separate permit shall be issued for each location, place, or premises within the jurisdiction of the local law enforcement agency which is used for the conduction of a precious metals business, and each permit shall designate the location, place or premises to which it applies. Such business shall not be conducted in any other place than that designated in the permit, and no business shall be conducted in a mobile home, trailer, camper, or other vehicle, or structure not permanently affixed to the ground or in any room customarily used for lodging in any hotel, motel, tourist court, or tourist home as defined in G.S. 105‑61. The permit shall be posted in a prominent place on the designated premises. Permits shall be valid for a period of 12 months from the date issued and may be renewed without a waiting period upon filing of an application and payment of the annual fee. The annual fee for each dealer's permits within each jurisdiction shall be two hundred fifty dollars ($250.00) to provide for the administrative costs of the local law enforcement agency, including purchase of required forms. The fee shall not be refundable even if the permits are denied or later suspended or revoked. Such permits shall be in addition to and not in lieu of other business licenses and are not transferable.
Any dealer applying to the local law enforcement agency for a permit shall furnish the local law enforcement agency with the following information:
(1)	His full name, and any other names used by the applicant during the preceding five years. In the case of a partnership, association, or corporation, the applicant shall list any partnership, association, or corporate names used during the preceding five years;
(2)	Current address, and all addresses used by the applicant during the preceding five years;
(3)	Physical description;
(4)	Age;
(5)	Driver's license number, if any, and state of issuance;
(6)	Recent photograph;
(7)	Record of felony convictions;
(8)	Record of other convictions during the preceding five years; and
(9)	A full set of fingerprints of the applicant.
If the applicant for a dealer's permit is a partnership or association, all persons owning a ten percent (10%) or more interest in the partnership or association shall comply with the provisions of this subsection. Any such permits shall be issued in the name of the partnership or association.
If the applicant for a dealer's permit is a corporation, each officer, director and stockholder owning ten percent (10%) or more of the corporation's stock, of any class, shall comply with the provisions of this subsection. Any such permits shall be issued in the name of the corporation.
No permit shall be issued to an applicant who, within five years prior to the date of application, has been convicted of a felony involving a crime of moral turpitude, or larceny, or receiving stolen goods or of similar charges in any federal court or a court of this or any other state. In the case of a partnership, association, or corporation, no permit shall be issued to any applicant with an officer, partner, or director who has, within five years prior to the date of application, been convicted of a felony involving a crime of moral turpitude, or larceny, or receiving stolen goods or of similar charges in any federal court or a court of this or any other state.
The Department of Justice may provide a criminal record check to the local law enforcement agency for a person who has applied for a permit through the agency. The agency shall provide to the Department of Justice, along with the request, the fingerprints of the applicant, any additional information required by the Department of Justice, and a form signed by the applicant consenting to the check of the criminal record and to the use of the fingerprints and other identifying information required by the State or national repositories. The applicant's fingerprints shall be forwarded to the State Bureau of Investigation for a search of the State's criminal history record file, and the State Bureau of Investigation shall forward a set of the fingerprints to the Federal Bureau of Investigation for a national criminal history check. The agency shall keep all information pursuant to this subsection privileged, in accordance with applicable State law and federal guidelines, and the information shall be confidential and shall not be a public record under Chapter 132 of the General Statutes.
The Department of Justice may charge each applicant a fee for conducting the checks of criminal history records authorized by this subsection.
(b)	Every employee engaged in the precious metal business shall, within two days of being so engaged, register his name and address with the local law enforcement agency and have his photograph taken by the agency. The employee shall also consent to a criminal history check, which shall be performed by the local law enforcement agency. A person who refuses to consent to a criminal history check shall not be employed by a dealer required to be licensed under this section. A person who, within five years prior to the date of application, has been convicted of a felony involving a crime of moral turpitude, larceny, receiving stolen goods, or of similar charges shall not be employed by a dealer required to be licensed under this section. The agency shall issue to him a certificate of compliance with this section upon the applicant's payment of the sum of ten dollars ($10.00) to the agency. The permit shall be renewable annually for a three dollar ($3.00) fee and shall be posted in the work area of the permit holder.
(c)	A special occasion permit authorizes the permittee to purchase precious metals as a dealer participating in any trade shows, antique shows, and crafts shows conducted within the State. A special occasion permit shall be issued by any local law enforcement agency; provided, however, that a permittee under subsection (a) shall apply for a special occasion permit with the local law enforcement agency which issued such dealer's permit. An application for a permit shall be on a form as approved by the Department of Crime Control and Public Safety and shall be given under oath and notarized. A 30‑day waiting period from the date of filing of the application is required prior to initial issuance of a permit.
Any dealer applying to a local law enforcement agency for a special occasion permit shall furnish the local law enforcement agency with the information required in an application for a dealer's permit as set forth in (a).
If the applicant for a special occasion permit is a partnership or association, all persons owning a ten percent (10%) or more interest in the partnership or association shall comply with the provisions of this subsection. Any such permits shall be issued in the name of the partnership or association.
If the applicant for a special occasion permit is a corporation, each officer, director and stockholder owning ten percent (10%) or more of the corporation's stock, of any class, shall comply with the provisions of this subsection. Any such permits shall be issued in the name of the corporation.
No permit shall be issued to an applicant who, within five years prior to the date of application, has been convicted of a felony involving a crime of moral turpitude, or larceny, or receiving stolen goods or of similar charges in any federal court or a court of this or any other state. In the case of a partnership, association, or corporation, no permit shall be issued to any applicant with an officer, partner, or director who has, within five years prior to the date of application, been convicted of a felony involving a crime of moral turpitude, or larceny, or receiving stolen goods or of similar charges in any federal court or a court of this or any other state.
The Department of Justice may provide a criminal record check to the local law enforcement agency for a person who has applied for a permit through the agency. The agency shall provide to the Department of Justice, along with the request, the fingerprints of the applicant, any additional information required by the Department of Justice, and a form signed by the applicant consenting to the check of the criminal record and to the use of the fingerprints and other identifying information required by the State or national repositories. The applicant's fingerprints shall be forwarded to the State Bureau of Investigation for a search of the State's criminal history record file, and the State Bureau of Investigation shall forward a set of the fingerprints to the Federal Bureau of Investigation for a national criminal history check. The agency shall keep all information pursuant to this subsection privileged, in accordance with applicable State law and federal guidelines, and the information shall be confidential and shall not be a public record under Chapter 132 of the General Statutes.
The Department of Justice may charge each applicant a fee for conducting the checks of criminal history records authorized by this subsection.
The fee for an application for a special occasion permit shall be two hundred fifty dollars ($250.00) to provide for the administrative cost of the local law enforcement agency including purchase of required forms. The fee shall not be refundable even if the permit is denied or is later suspended or revoked. Such permits shall be in addition to and not in lieu of other business licenses and are not transferable.
A special occasion permit shall be valid for 12 months from the date issued, unless earlier surrendered, suspended, or revoked. Application for renewal of a permit for an additional 12 months shall be on a form as approved by the Department of Crime Control and Public Safety and shall be accompanied by an application fee of ten dollars ($10.00). A renewal fee shall not be refundable.
Each special occasion permit shall be posted in a prominent place on the premises of any show at which the permittee purchases precious metals."
SECTION 3.  G.S. 66‑166 reads as rewritten:
"§ 66‑166.  Exemption from  permits; record keeping under an exemption.
(a)	Any merchant claiming an exemption from the requirements of G.S. 66‑165, 66‑168, and 66‑170 due to the percentage of his total business which constitutes precious metals purchases shall file an application therefor with the local law enforcement agency at the same time as applications for dealers' permits are required to be filed under the provisions of this Article. The application shall be upon a  form approved by the Department of Crime Control and Public Safety and shall contain as a minimum the following information: the name, home address and business address of the applicant; the name and location of the business at its permanent address; the primary nature of the business both as to purchases and sales; the total dollar volume of purchases of precious metals during the 12‑month period next preceding the date of application; the total dollar volume of all secondhand goods purchased during the same period by the business; the percentage of precious metals purchases or acquisitions to total purchases or acquisitions of secondhand goods; and the date when the merchant commenced the business under which the exemption is claimed. Such application shall be filed under the same oath as is required for a precious metals dealer permit, shall be notarized, and shall be accompanied by a fee of five dollars ($5.00), which fee shall be retained by the local law enforcement agency as cost for administering claims for exemptions.
The application for exemption, if granted, shall be valid for a period of 12 months. Thereafter, if the applicant seeks an exemption for the ensuing year he shall file an application for exemption 30 days before the expiration of the prior exemption.
If in any calendar month the percentage of precious metals purchased by an exempted merchant exceeds ten percent (10%) of his total purchases, he shall file notice thereof with the local law enforcement agency.
(b)	Every merchant to whom an exemption has been issued pursuant to subsection (a) of this section shall maintain a record of each precious metals purchase that includes a clear and accurate description of the specific item or items purchased and the date of the transaction. Each record entry shall be made at the time of the transaction. These records shall be kept either (i) in a book or (ii) electronically.
The records kept by merchants to whom an exemption has been issued pursuant to subsection (a) of this section shall be open at all reasonable times to inspection on the premises by law enforcement agencies. If the merchant maintains a record book rather than electronic records, the book shall not be destroyed until two years after the last recorded transaction in the book. If the merchant maintains electronic records, a record entry shall not be deleted until two years after a transaction and the merchant shall provide a hard copy of the records upon the request of a law enforcement agency.
(c)	Local law enforcement shall not issue an exemption under subsection (a) of this section after September 30, 2009. Exemptions issued by local law enforcement under subsection (a) of this section on or before September 30, 2009, shall remain in effect until 12 months after the date of issuance."
SECTION 4.  G.S. 66‑166 is repealed.
SECTION 5.  G.S. 66‑169 reads as rewritten:
"§ 66‑169.  Records to be kept.
Every dealer to whom a permit has been issued pursuant to G.S. 66‑165 shall maintain  serially numbered records of each and every precious metals transaction. Each serially numbered record shall be made at the time of the transaction and shall contain a clear and accurate description of the transaction. A valid description shall include each of the following applicable and available items of information: the manufacturer's name, the model, the model number, the serial number, and any engraved numbers or initials found on the  items; the date of the  transaction;  the name, sex, race, residence, telephone number and driver's license  number of the person selling the items  purchased; and the signature of both the dealer and the seller. In the event the seller cannot furnish  valid, unexpired photographic identification in the form of a drivers license, State‑issued identification card, passport, or military identification  card, the dealer shall require two forms of positive identification.
The serially numbered records required by this section shall be kept either (i) in a paginated, bound book or set of books with pages numbered in sequence or (ii) in an electronic database that prevents record deletion and tracks all modifications to records and that provides for electronic signatures.
The  records shall be open at all reasonable times to inspection on the premises by law enforcement agencies, and an individual record shall  be  retained for at least two years after a transaction. If a dealer maintains a record book rather than an electronic database, the book shall be retained until at least two years following the last  recorded transaction. A copy of each serially numbered record  entry shall be filed within 48 hours of the transaction in the office of the local law enforcement agency. Mailing the required copy to the local law enforcement agency within 48 hours of the transaction shall constitute compliance with this section. If a dealer maintains an electronic database, these records may be electronically reported to the local law enforcement agency by transmission over a computer network, including the Internet, or by facsimile machine in a manner authorized by the local law enforcement agency. Regardless of whether the local law enforcement agency allows electronic reporting, a dealer shall provide a hard copy of records upon the request of a law enforcement agency.
The files of local law enforcement agencies which contain such copies of  records shall not be subject to inspection and examination as authorized by G.S. 132‑6. Any public official or employee who shall knowingly and willfully permit any person to have access to or custody or possession of any portion of such files, unless the person is one specifically authorized by the local law enforcement agency to have access  for purposes of law enforcement investigation or civil or criminal proceedings, shall be guilty of a Class 3 misdemeanor and upon conviction shall only be  fined, in the discretion of the  court,  up to five hundred dollars ($500.00).
"
SECTION 6.  G.S. 66‑170 reads as rewritten:
"§ 66‑170.  Items not to be modified.
No item included in a dealer purchase shall be sold, traded or otherwise disposed of, melted, cut or otherwise changed in form nor shall any such item be removed from the licensed premises  before the earlier of seven days after the date the purchase ticket record is electronically reported in accordance with G.S. 66‑169 or 30 days after the transaction."
SECTION 7.  Article 25 of Chapter 66 of the General Statutes is amended by adding a new section to read:
"§ 66‑174.  County and municipal ordinances.
Each county and city may by ordinance adopt additional rules and regulations consistent with and in furtherance of the provisions of this Article, including a requirement that applicants for a permit required by this Article consent to be fingerprinted or produce additional identifying information."
SECTION 8.  Sections 1 and 2 of this act become effective October 1, 2009.  Section 4 of this act becomes effective October 1, 2012.  The remainder of this act is effective when it becomes law.