Arizona Law on Precious Items - Secondhand Dealers

Arizona Revised Statutes Annotated
Title 44. Trade and Commerce
Chapter 11. Regulations Concerning Particular Businesses
Article 1. Dealers of Precious Items (Refs & Annos)

§ 44-1601. Definitions

In this article, unless the context otherwise requires:
1. “Dealer” means a person engaged in conducting, managing or carrying on the business of purchasing solely precious items or precious items in addition to other tangible personal property. Dealer does not include:
(a) Investment brokerage houses.
(b) Financial institutions regulated by the department of financial institutions.
(c) Securities brokerage houses regulated by a recognized national stock exchange.
2. “Investment brokerage house” means a house with commissioned agents who execute buy and sell orders for their customers and who:
(a) Execute orders for investment items.
(b) Do not assume the risks of ownership in the normal course of providing their brokerage services.
(c) Do not maintain or deal from an inventory of investment items.
3. “Investment items” means commodities which possess the characteristics of those items commonly traded in internationally recognized markets.
4. “Local law enforcement agency” means the police department of an incorporated city or town or, in areas outside of incorporated cities and towns, the county sheriff.
5. “Person” means an individual, partnership, corporation, association or any other entity of whatever kind or nature.
6. “Precious item” means:
(a) Secondhand gold, silver, platinum or jewelry, flatware or holloware containing gold, silver or platinum.
(b) Secondhand precious or semiprecious stones whether mounted or unmounted.
(c) Secondhand pearls. Precious item does not include coins and unmounted gemstones accompanied by a certificate from an independent, internationally recognized gem grading laboratory.
7. “Purchase” means to buy, trade, exchange or receive a precious item.
8. “Secondhand” means that the precious item has previously been owned by someone other than the manufacturer or dealer whose business it is to sell such items to the public.

§ 44-1602. Requirements of dealers of precious items; violation; classification

A. Each dealer shall keep for six months from the date of purchase of a precious item and make available on request of a peace officer:
1. The name, current address, date of birth and signature of the person from whom the item was purchased.
2. A description of the person, including height, weight, race, complexion and hair color.
3. Identification card serial number as required under subsection B.
4. A list pursuant to subsection C describing the items purchased from that person.
B. Before making a purchase, a dealer shall require the person from whom he is purchasing to identify himself with a valid motor vehicle operator's license, valid motor vehicle nonoperating identification license, valid armed forces identification card or other valid photo identification sufficient to verify the information required pursuant to subsection A of this section.
C. Each dealer shall, at least once each week in which he makes a purchase, make out and deliver to the local law enforcement agency a true, complete and legible list of all items purchased during the period since the last report. The dealer shall use local law enforcement agency forms to meet the requirements of this subsection if such forms are issued by the local law enforcement agency. The list shall include:
1. The brand name and serial number, if any.
2. An accurate description of each item sufficient to enable the local law enforcement agency to identify the item.
3. The date and time when the item was received.
4. The amount paid for each item.
5. All information pursuant to subsection A, paragraphs 1, 2 and 3.
D. Any item purchased shall be held in the same shape and form as receipted for in the dealer's custody for ten calendar days after delivering the list to the local law enforcement agency as required under subsection C. This subsection shall not apply to the redemption of pawned or pledged items.
E. Payment to the seller or consignor shall be by check only, made payable to a named payee who is the actual intended seller.
F. It is presumptive evidence of intent to violate this section if the items purchased are not listed or fail to agree with the description contained in the list.
G. On notification by a peace officer that the items purchased are the fruits of a crime, the dealer shall not dispose of those items.
H. A dealer shall not purchase any precious item from any person under eighteen years of age unless the person is accompanied by a parent or guardian who must submit identification as required under subsection B.
I. Dealers of precious items may only purchase at their permanent place of business, as listed on their sales tax license.
J. Each dealer shall prominently display a copy of this statute in a conspicuous place on the premises of the business.
K. A person who violates this article is guilty of a class 1 misdemeanor.

§ 44-1603. Applicability

This article does not apply to:
1. Gem and mineral shows which have been regularly scheduled within this state for at least three consecutive years.
2. Transactions in precious items that constitute a partial trade for new or used merchandise of like kind.
3. Any person who purchases precious items from merchants, manufacturers or wholesale dealers.

§ 44-1604. Local ordinances

This article does not supersede any city, town or county ordinance nor does this article prohibit a city, town or county from enacting an ordinance regulating dealers of precious items. If a city, town or county has an ordinance regulating dealers of precious items, the provisions of this act and the provisions of that ordinance shall both apply except that an ordinance of a city, town or county which conflicts with or provides less stringent requirements than are provided in this article shall not be enforceable.

Ariz. Rev. Stat. Ann. § 44-1601-4