Delaware General Assembly

Defeated 6/12/03

The General Assembly has ended, the current status is the final status.

4/29/03

Viola

Reps. Keeley, Buckworth, Maier, Spence
Sen. Henry

AN ACT TO AMEND CHAPTER 23 OF TITLE 24 OF THE DELAWARE CODE RELATING TO PAWNBROKERS, SECOND-HAND DEALERS, AND SCRAP METAL PROCESSORS.

For years, law enforcement agencies in Delaware have been frustrated in their attempts to recover stolen property. Well-known conduits for stolen goods are pawnshops, secondhand dealers, and scrap metal processors (junk dealers) that have no idea or way of knowing that the goods may be stolen. First, this Act does not apply to auctions, antique dealers who sell only antiques, flea markets, car dealers, garage or yard sales, the sale of used books, the sale of goods to nonprofits or schools or religious organizations, the sale of used furniture or clothes. Second, this Act requires pawnbrokers, secondhand dealers, and scrap metal processors to report via electronic mail on a daily basis the sale, pledge or pawn of certain kinds of goods that have a higher risk of being stolen, so that information can be accessed at a central computerized source by law enforcement agencies around the State as part of a criminal investigation of stolen property. Third, this Act imposes an 18-day waiting period on pawnbrokers and secondhand dealers to hold goods before selling or disposing of the goods. Scrap metal processors must hold gold and silver for 18 days but there is no holding period for copper wire. This time period will allow police a reasonable amount of time to track stolen goods before they are sold by the pawnbroker or secondhand dealer. Fourth, this Act requires records to be kept for 1 year and allows Delaware police to inspect the records and premises of inventory. Fifth, this Act allows a pawnbroker, secondhand dealer or scrap metal processor to seize any goods brought before them which they believe have been stolen. Sixth, this Act prohibits a pawnbroker, secondhand dealer or scrap metal processor from buying goods from (i) children under 18, except for the sale of aluminum cans for recycling, unless the child is accompanied by a parent, grandparent or guardian, (ii) someone who is apparently under the influence of alcohol or drugs, or (iii) someone when the serial or id number of the good has been tampered with. Seventh, this Act requires a pawnbroker to hold goods that have truly been pawned or pledged, not sold, for one month after the contract has expired before they are sold or disposed of. Eighth, any violation of this Act will result in a fine of up to $5,000 and upon failure to pay, imprisonment from one month to one year. Ninth, this Act permits a county or municipality to enact additional laws that impose stricter requirements regarding reporting, holding periods, and the like, but makes clear that everyone must abide by the requirements of this Act. Tenth, this Act requires pawnbrokers, secondhand dealers and scrap metal processors in New Castle, Kent and Sussex Counties to obtain a license. New Castle County pawnbrokers and scrap metal processors are currently subject to this requirement. License fees will go to the State's General Fund. State police have the discretion to revoke a business license for violations of this Chapter. The Secretary of the Department of Public Safety will establish rules governing the revocation of a license, appeal process and reinstatement. License fees shall be $50 each. Eleventh, this Act increases from $1,000 to $50,000 the amount of fire insurance that a pawnbroker is required to maintain. Twelfth, this Act eliminates the requirement that the Finance Department of New Castle County audit the records relating to pawnbroker/Scrap metal processors licensing and instead imposes a requirement that the State Police make an annual report of licensed pawnbrokers, secondhand dealers and scrap metal processors. Finally, this Act will take effect six months following passage as law, except that the requirement of electronic reporting will take effect one year from passage as law.

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Takes effect upon being signed into law

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