All Tennessee residents...Bill to register precious metals transactions with LEO

[Ben]

HOUSE BILL 218
By Fincher
AN ACT to amend Tennessee Code Annotated, Title 38,
Chapter 1, Part 2, relative to scrap metal and
jewelry dealers.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 38-1-202, is amended by deleting
subsection (b) in its entirety and substituting instead the following new subsections:
(b) No person acting as a buyer or dealer under this section shall purchase any
item covered by this section from a person under eighteen (18) years of age, nor accept
any item covered by this section from anyone who appears intoxicated, nor from any
person known to the person to be a thief, or to have been convicted of larceny, burglary
or robbery, without first notifying a police officer. Any person acting as a buyer or dealer
under the provisions of this section shall exercise due care to comply with the provisions
of this section.
(c) No person acting as a buyer or dealer under the provisions of this section
shall take any item covered by this section under a buy-sell agreement, when the article
is known to the person to be stolen.
SECTION 2. Tennessee Code Annotated, Section 38-1-203, is amended by deleting the
section in its entirety and substituting instead the following:
(a) Every person or corporation dealing in the items described in § 38-1-201 shall
keep a log in duplicate and shall enter on the log:
(1) A clear and accurate description of any items of jewelry or precious
metals purchased including, if applicable:
(A) Brand name;
- 2 - 00161065
(B) Model number;
(C) Serial number, if issued by the manufacturer and not
intentionally defaced, altered or removed;
(D) Size;
(E) Color, as apparent to the untrained eye, not applicable to
diamonds;
(F) Precious metal type, content and weight, if indicated;
(G) Gemstone description, including the number of stones; and
(H) Any other unique identifying marks, numbers, names or
letters.
(2) Information on the seller, including: the name, race, sex, height,
weight, date of birth, residence address and numbers from the items used as
identification. Acceptable items of identification are one (1) of the following
documents:
(A) A state-issued driver license;
(B) A state-issued identification card;
(C) A passport;
(D) A valid military identification;
(E) A nonresident alien border crossing card;
(F) A resident alien border crossing card; or
(G) A United States immigration and naturalization service
identification; and
(3) The date and amount of money paid for such items.
(b) The seller and the purchaser shall sign the log below the description of each
transaction.
- 3 - 00161065
(c) On each day the purchaser shall transact business of the type described
within this section, the purchaser shall deliver to the sheriff and the chief of police of
each county or municipality in which the business is conducted a copy of the log
concerning that day's business, and the copy of the log shall be delivered by twelve
o'clock (12:00) noon of the day following the date of the transaction. The book shall be
carefully preserved without alteration and shall at all times be open to the inspection of
the sheriff of the county and the chief of police or any deputy or police officer of the city
or county.
SECTION 3. Tennessee Code Annotated, Title 38, Chapter 1, Part 2, is amended by
adding the following language as a new section:
§ 38-1-205.
(a) When any person sells property to a buyer or dealer subject to § 38-1-201,
the buyer or dealer shall obtain and record the information provided for in § 38-1-203
and obtain a statement of the seller that the seller is the lawful owner of the item, and
have the record signed by the seller. This record shall be made available to any law
enforcement agency or officer upon request.
(b) (1) The party asserting ownership of any property, which the party alleges is
stolen and which is in the possession of a buyer or dealer subject to § 38-1-201, may
recover the property by making a report to any law enforcement agency of the location of
the property and providing the law enforcement agency with proof of ownership of the
property; provided, that a report of the theft of the property was made to the proper
authorities within thirty (30) days after obtaining knowledge of the theft or loss; and
provided further, that the party asserting ownership will assist in the prosecution of the
seller of the item. Upon the receipt of proof of ownership, any law enforcement officer is
authorized to recover the property from the buyer or dealer, without expense to the
- 4 - 00161065
rightful owner thereof, unless the buyer or dealer presents evidence of having received
proof of ownership of the property by the seller. Any property recovered from a buyer or
dealer subject to § 38-1-201, shall be returned to the rightful owner thereof, subject to
evidence in any criminal proceeding.
(2) In the event that the party asserting ownership of the article has provided a
timely report of the theft or loss of the article, and the buyer or dealer presents
acceptable evidence to the law enforcement agency of having received proper proof of
ownership from the seller of the property, then and only then shall the law enforcement
agency have satisfied its processes, duties and responsibilities. It shall then inform the
party alleging ownership that it will be necessary for that person to commence an
appropriate civil action for the return of the items within thirty (30) days of receiving the
notice. The buyer or dealer shall not be required to surrender the property to any law
enforcement officer or agency or any other person absent an appropriate warrant.
(3) If for any reason after the local authorities have seized certain property and
are unable to locate the rightful owner of the property after due diligence, then the
property may be returned to buyer or dealer upon the buyer or dealer executing a holdharmless
agreement to the local authorities pursuant to title 40, chapter 33.
SECTION 4. Tennessee Code Annotated, Section 38-1-204, is amended by deleting the
language "Class C misdemeanor" and substituting instead the language "Class A
misdemeanor".
SECTION 5. This act shall take effect July 1, 2009, the public welfare requiring it.