Second Hand Dealers Law New York City

New York City Administrative Code
Title 20. Consumer Affairs
Chapter 2. Licenses
Subchapter 11. Dealers In Second-hand Articles
Current through 2013 New York City Local Law 133 and 2013 New York Laws, Chapter 517
§ 20-264. [Second of two versions] Definitions

a.     Whenever used in this subchapter, the words "dealer in second-hand articles" shall mean any person who, in any way or as a principal broker or agent:
1.     Deals in the purchase or sale of second-hand articles of whatever nature, or
2.     Accepts or receives second-hand articles as returns of merchandise or in exchange for or for credits on any other articles or merchandise, or
3.     Deals in the purchase or sale of any second-hand manufactured article composed wholly or in part of gold, silver, platinum or other metals, or
4.     Deals in the purchase or sale of old gold, silver, platinum or other precious metals, or
5.     Deals in the purchase of articles or things comprised of gold, silver, platinum or other precious metals for the purpose of melting or refining, or
6.     Engages in melting previous metals for the purpose of selling, or
7.     Deals in the purchase or sale of pawnbroker tickets or other evidence of pledged articles, or
8.     Not being a pawnbroker deals in the redemption or sale of pledged articles, or
9.     Deals in the purchase or sale of any used electrical appliance, electronic equipment or component parts.
b.     Nothing contained in this subchapter shall be construed to apply to:
1.     Pianos, books, magazines, rugs, tapestries, artists' burlaps, painting, sculpture, drawings, etchings and engravings;
2.     The first purchase or sale in the city of any imported second-hand article;
3.     The acceptance or receipt of merchandise which is not second-hand as a return, exchange, or for credit or refund if such merchandise was originally purchased as new merchandise from the person accepting or receiving the same, nor to the resale of such merchandise;
4.     The acceptance or receipt of second-hand merchandise as a return, trade-in, exchange, or for credit or refund if such merchandise was originally purchased as new merchandise from the person accepting or receiving the same, nor to the first subsequent sale or exchange of such merchandise to any person other than an ultimate consumer;
5.     The first sale, at retail of merchandise which has been rebuilt by the manufacturer or vendor originally manufacturing it, or the licensed agents thereof, and sold as factory rebuilt merchandise.
c.     The burden of proof that an article was originally purchased from the person accepting or receiving it, that it was the first subsequent sale or exchange thereof to a person other than an ultimate consumer or that it was a first sale at retail of such factory rebuilt merchandise shall be upon the person asserting the same. Evidence of an existing trade-practice in the city, if any, shall be admissible for the purpose of determining whether or not merchandise is second-hand.
Cite as N.Y.C. Admin. Code § 20-264

§ 20-265. [Second of three versions] License required

a.     It shall be unlawful for any person to act as a dealer in second-hand articles without a license therefor.
b.     There shall be the following types of licenses:
A general license which shall authorize the licensee to act as a secondhand dealer with respect to all articles other than secondhand automobiles, within the city during the license period specified in section 20-266 of this subchapter.

An exposition license which shall authorize a dealer in antiques who maintains no place of business within the city to exhibit and sell such antiques at any fair, show or exposition within the city during a period of one month from the date of issuance of such license.

A secondhand automobile dealer's license which shall authorize the licensee to act as a secondhand dealer with respect to secondhand automobiles within the city during the license period specified in section 20-266 of this subchapter.

Cite as N.Y.C. Admin. Code § 20-265

§ 20-265. [Third of three versions] License required

a.     It shall be unlawful for any person to act as a dealer in second-hand articles without a license therefor.
b.     There shall be the following types of licenses:
A general license which shall authorize the licensee to act as a secondhand dealer with respect to all articles other than secondhand automobiles, within the city during the license period specified in section 20-266 of this subchapter.

An exposition license which shall authorize a dealer in antiques who maintains no place of business within the city to exhibit and sell such antiques at any fair, show or exposition within the city during a period of one month from the date of issuance of such license.

A secondhand automobile dealer's license which shall authorize the licensee to act as a secondhand dealer with respect to secondhand automobiles within the city during the license period specified in section 20-266 of this subchapter.

Cite as N.Y.C. Admin. Code § 20-265

§ 20-266. [Second of two versions] Bonds; fee; term; fingerprinting

a.     Each dealer securing a general license shall furnish a bond to the city, with sufficient surety, to be approved by the commissioner in the penal sum of one thousand dollars conditioned for the due observance of the law relating to such dealers.
b.     The fee for licenses shall be as follows: for a general license, a biennial fee of three hundred forty dollars; for a second-hand automobile dealer's license, a biennial fee of six hundred dollars.
c.     The commissioner shall require that applicants for licenses issued pursuant to this subchapter be fingerprinted for the purpose of securing criminal history records from the state division of criminal justice services. The applicant shall pay a processing fee as required by the state division of criminal justice services. Fingerprints shall be taken of the individual owner if the applicant is a sole proprietorship; the general partners if the applicant is a partnership; and the officers, principals, directors, and stockholders owning more than ten percent of the outstanding stock of the corporation if the applicant is a corporation. Any person required to be fingerprinted hereunder shall furnish to the department three current passport-size photographs of such person. Notwithstanding the foregoing, the commissioner need not require applicants for licenses required under this subchapter to be fingerprinted if criminal history records concerning such applicants are not available from the state division of criminal justice services.
Cite as N.Y.C. Admin. Code § 20-266

§ 20-266.1. Refusal to issue or renew, or suspension or revocation based on criminal conviction

In addition to any of the powers that may be exercised by the commissioner pursuant to this subchaper or chapter one of this title, the commissioner, after notice and an opportunity to be heard, may refuse to issue or renew, or may suspend or revoke, a license required under this subchapter if the applicant or licensee, or any of its principals, officers or directors, or any of its stockholders owning more than ten percent of the outstanding stock of the corporation has been convicted of a crime which, in the judgment of the commissioner, has a direct relationship to such person's fitness or ability to perform any of the activities for which a license is required under this subchapter or has been convicted of any other crime which, in accordance with article twenty-three-a of the correction law, would provide a justification for the commissioner to refuse to issue or renew, or to suspend or revoke, such license.

Cite as N.Y.C. Admin. Code § 20-266.1

§ 20-267. Report to the police commissioner

Every dealer in second-hand articles, upon being served with a written notice to do so by a member of the police department, shall report to the police commissioner, on blank forms to be furnished by such department, a copy of the records required to be kept under section 20-273 of this subchapter, of all goods or articles or any part thereof, purchased, received or sold in the course of his or her business, during the days specified in such notice.

Cite as N.Y.C. Admin. Code § 20-267

§ 20-268. Restrictions

a.     It shall be unlawful for any dealer in second-hand articles to carry on his or her business at any place other than the one designated in such license.
b.     It shall be unlawful for any such dealer to purchase any second-hand goods, or things from any person whom he or she knows to be or has reason to believe is a minor.
c.     It shall be unlawful for any person whose principal business is dealing in second-hand articles to purchase any second-hand goods or articles from any person between the hours of 12:00 A.M. and 6:00 A.M.
d.     It shall be unlawful for any such dealer to sell or dispose of any articles or things except household furniture, curtains, carpets, stoves, kitchen utensils, office furniture, automobiles, motor and other vehicles, machinery, belting, building materials and barrels, or other articles or things received from a dealer or pawnbroker, or which have been received from persons known to be jewelers, dealers, banking institutions, executors or administrators, until the expiration of fifteen days after such purchase or redemption.
e.     All second-hand articles or things purchased for the purpose of melting or refining by persons principally engaged in such business, from persons who are not jewelers or dealers, shall not be sold, refined or melted or disposed of until the expiration of fifteen days after such purchase.
Such items as described in the preceding paragraph shall be kept on the premises described in the license which is required by section 20-265 of this chapter.

f.     It shall be unlawful for any person licensed as a dealer in second-hand articles, to be licensed as a pawnbroker. It shall be unlawful for any such dealer to receive any article by way of pledge or pawn, or employ subterfuge for receiving goods as security for the advancement of money; nor shall any sign, device or subterfuge be displayed, used or employed by any such dealer in or about the premises where such business is conducted, which in any way resembles the emblem or sign commonly used by pawnbrokers, or which is intended to give the appearance that the business conducted on such premises is, or is connected with, the business of a pawnbroker; nor shall there be any sign displayed which is calculated to deceive.
g.    
(1)     All open lots used as places of storage by junk dealers and dealers in second-hand articles, except lots used as places of display by dealers engaged exclusively in the sale of used or second-hand automobiles, shall be enclosed on all sides adjoining any street by a sheet metal or wooden fence which shall be sufficient to obscure such premises from the public view, and at least six feet in height. It shall be unlawful for such dealer to display or exhibit such property or articles on or in front of any such fence. It shall be the duty of such dealer occupying such premises to keep such fence free and clear of all signs, posters, handbills or other forms of advertisement of any sort whatsoever, except that such dealer may display one sign not exceeding twenty-four feet in length by six feet in height on such fence on each street which such premises shall adjoin, such sign to be used for the purpose of advertising the business of such dealer. The same restrictions shall apply to the owner of such premises in the event that such premises are made available for lease by such owner.
(2)     It shall be unlawful to stack or to permit the stacking of any motor vehicles of any kind, or any parts thereof, upon any private property within the city unless such vehicles or parts thereof are completely enclosed within a building, or within an area surrounded by a six foot high fence constructed of sheet metal or wood. When stacked in an open lot such motor vehicles or parts thereof shall be on the interior portion of the lot and the base of such stack shall be a distance of not less than twenty feet from such fence, and the height of such stack shall not exceed twenty feet. There shall be no less than a five hundred foot distance between the area so used and any place of worship, school or other public building.
(3)     The commissioner shall cause periodic inspection to be made of the area and must be satisfied that such premises comply with all laws and rules and regulations of the department of buildings, the fire department, the department of transportation, the department of health and mental hygiene, and the department of environmental protection insofar as the same are applicable thereto. For purposes of facilitating the inspection prescribed by this section, the commissioner is authorized to call upon the heads of the above named departments and such departments and their employees shall make such inspections as may be required.
(4)     The provisions set forth in paragraph (2) hereof relating to the five hundred foot distance from any place of worship, school or public building, shall not apply to any existing licensed premises.
Cite as N.Y.C. Admin. Code § 20-268

§ 20-269. Automobile wreckers; fires

The occurrence, as reported by the fire commissioner pursuant to subdivision c of section 27-4249 of the code, of more than two fires during any twelve-month period at a location operated for the salvage, dumping or wrecking of automobiles or parts thereof by a person licensed pursuant to this subchapter, shall be considered by the commissioner as prima facie evidence of the existence of a continuous danger to public health and safety and shall be grounds for the suspension or revocation of said license.

Cite as N.Y.C. Admin. Code § 20-269

§ 20-270. Sign for new and second-hand articles

Every person licensed as a dealer in second-hand articles, who also sells new articles within the licensed premises, shall have a sign of not less than two hundred sixteen square inches with letters thereon not less than two inches in height prominently displayed within the department or area where said articles are sold, informing the public that new articles and second-hand articles are sold within said department or area.

Cite as N.Y.C. Admin. Code § 20-270

§ 20-271. Labeling of second-hand articles and posting of prices for second-hand automobiles.

a. Every person licensed as a dealer in second-hand articles, who also sells new  articles  within the  licensed  premises, shall label all second-hand articles  in  such  manner that the public will be informed that such articles are not new.
b. Every person required to be licensed as  a second-hand  automobile dealer  pursuant  to section 20-265 of this subchapter, who sells
second-hand automobiles at retail, shall clearly and conspicuously post:
1. the total selling price, which shall  include  any administrative, service or other fee charged by the second-hand automobile dealer exclusive of all taxes and fees for securing a registration or certificate of title, of each second-hand automobile offered for sale at his or her place of business, by means of a sign on the dashboard of each such automobile or by means of a sign at the point of display of each such automobile; and
2. The total selling price of any add-on product offered for sale by means of a sign at the point of display of the second-hand automobile for which such product is available for purchase or at each location within the dealer's place of business where any such product is offered for sale. Such sign shall inform consumers that the purchase of any add-on product is optional. For purposes of this paragraph,  "add-on product"   shall   mean vehicle service contracts, extended service contracts, prepaid maintenance packages, road   service or club membership, theft protection, car alarm, auto immobilizer,vehicle identification number etching, mechanical  breakdown, guaranteed  auto protection, and credit life, accident or disability insurance.
c.  Nothing  in  this  section  shall prevent a second-hand automobile dealer from selling a second-hand automobile or an add-on product  at  a lower selling price than the price posted pursuant to subdivision b of this section.
d. 1. Any person who violates subdivision b of this section or any rule or regulation issued there under shall be subject to a civil penalty of not more than:
    (a) five hundred dollars for the first violation;
    (b) seven hundred and fifty dollars for the          second violation committed within one year of    the first violation; and
    (c)  one  thousand  dollars  for the third or any  subsequent violation committed within one year of the first violation.
2. For  purposes  of  assessing  penalties  in  accordance  with  this subdivision, all violations  committed by the same dealer on the same day  shall count as one violation.

Cite as N.Y.C. Admin. Code § 20-271

§ 20-272. Lost or stolen property

a.     If any goods or articles shall be advertised in any newspaper printed in the city as having been lost or stolen, and if any goods or articles answering such advertised description or any part thereof, shall be in or come into the possession of any dealer in second-hand articles, upon receiving written or oral notice to do so, such dealer shall give information thereof in writing to the police commissioner.
b.     Every dealer in second-hand articles who shall have or receive any goods, or articles lost or stolen, or alleged or supposed to have been lost or stolen, shall exhibit the same, on demand, to the commissioner or departmental inspector, or to any judge of the criminal court, to any police officer, or to any person, duly authorized in writing by the commissioner or by any judge of the criminal court, who shall exhibit such written authority to the dealer.
Cite as N.Y.C. Admin. Code § 20-272


§ 20-273. Record of purchase and sales.

a. Subject to the provisions of subdivisions  b  and c of this section, every dealer in second-hand articles shall keep a written record of transactions that shall be legible and written in English. At the time of every purchase and at the time  of every sale, every dealer in second-hand articles shall enter in such written record a description of every article so purchased or sold, the number or numbers and any monograms, inscription or other marks  of identification  that  may  appear  on such article, a description of the articles or pieces comprising old gold, silver, platinum, or other metals, and any monogram, inscription or marks of identification thereon, the name, residence and general description of the person from whom such purchase was made or to whom sold and the day and hour of the purchase or sale.
b. In addition to  maintaining  written  records  in accordance  with subdivision a of this section, every dealer in second-hand articles that deals in the purchase or sale of any second-hand manufactured article composed wholly or in part of gold, silver, platinum, or other precious metals, or deals in the purchase or sale of any old gold, silver, platinum or other precious metals, or deals in the purchase of  articles or things comprised of gold, silver, platinum or other precious metals for the purpose of melting or refining, or deals in the purchase or sale of used electrical appliances excluding kitchen appliances, or deals  in the  purchase or sale of any used electronic equipment, computers or component parts of electronic equipment or computers, shall with respect to such transactions create an electronic record in English, in a manner to be specified by the police commissioner by rule. Such electronic record  may include real-time sharing or accessing of such records in an electronic format and/or through use of an internet website designated by the police commissioner. Such electronic record shall be retained for a minimum period of six years from the date of purchase or sale. Such electronic record shall be created by the dealer at the time of each transaction and shall include the following information: 
(i) date, time, and  location  of  transaction; and (ii) an accurate description of each article purchased or sold, including the type of article, manufacturer, make, model or serial number, inscriptions or distinguishing marks. Such electronic record may include one or more digital photographs reasonably capturing the likeness of the article, provided in a format or in accordance with specifications as provided by rule of the police commissioner in furtherance of the purposes of this subchapter.
c.  In  the  case of a dealer in second-hand articles who deals in the purchase or sale of pawnbroker tickets or other evidence of pledged articles  or the redemption or sale of pledged articles and who is not subject to the provisions of section 20-277 of this chapter:
1.  Every  dealer  shall  at  the  time  of  such purchase,  sale  or redemption, include the following information in the written record kept pursuant to subdivision a of this section:
(i) The name and address of the person who issued such ticket or other evidence;
(ii) The pledge number of such pawn ticket or other evidence;
(iii) The name and address of the pledgor as it appears upon such pawn ticket or other evidence;
(iv)  The  amount loaned or advanced as it appears on such pawn ticket or other evidence;
(v) The day and hour of such purchase, sale or redemption, as the case may be;
(vi) The name, residence and general description of  the  person  from whom  or  to whom the redeemed article is purchased or sold, as the case may be;
(vii) The sum paid or received for such pawn ticket or other evidence, or the sum paid or received for the redeemed article or pledge; and
(viii)  Such  description of a pledged article as appears on such pawn ticket or other evidence and an accurate description of  every  redeemed pledged article.
2. Every dealer shall with respect to such transactions also create an electronic  record in English, in a manner to be specified by the police
commissioner by rule.  Such  electronic  record may  include  real-time sharing  or  accessing  of such  records in an electronic format and/or through  use  of  an  internet  website   designated by the police commissioner.
Such  electronic  record  shall be retained for a minimum period of six years from the date of purchase or sale. Such electronic record shall be created by the dealer at the time of purchase, sale or redemption and shall include the information specified in  subparagraphs (i), (ii), (iv), (v), (vii) and (viii) of paragraph  one of this subdivision and one or more digital photographs reasonably capturing the likeness of the article, provided in a format or in accordance  with specifications  as  provided  by  rule  of  the police commissioner in furtherance of the purposes of this subchapter.
d. In the case of a sale or other disposal of a motor vehicle,  motor cycle or motor thereof, the dealer in second-hand articles shall, in addition to any other entry required by subdivision a of  this section, enter in such permanent record the vehicle identification number of said motor vehicle, motor cycle or motor, the manner in which said motor vehicle, motor cycle or motor was removed from the premises, giving  the name, address and date of birth  of the person who removes it, the driver's license number of such person and state  of  issuance  if  such person possessed a driver's license, the motor vehicle registration number of any vehicle used  to  tow, remove or transport such motor vehicle,  motor cycle or motor, and the destination to which the motor vehicle, motor cycle or motor is being removed.
e. The records required by  this  section, including any electronic records  pursuant  to  subdivisions b and c, shall be open to the inspection of any police officer, the commissioner or  any departmental inspector,  judge  of  the  criminal court, or person duly authorized in writing for such purposes by the commissioner or by  any judge  of  the criminal  court, who shall exhibit such written authority to the dealer.
Such records shall also be open to the inspection of any official or other  person  identified in, or duly authorized in writing pursuant to, any other applicable state or local law.
f. A dealer in second-hand  articles  subject  to the provisions of subdivisions  b  or c of this section shall acquire and maintain in good working order the electronic equipment necessary to create and maintain the  electronic  records  required  by  this section, including but not limited to a computer with internet connection and a digital camera utilizing a file format designated by the police commissioner.
g. Nothing  in this section shall be construed to affect or supersede any record keeping requirement imposed by or pursuant to any other
applicable federal, state or local law.

§ 20-275. Violation

Any person who shall violate any of the provisions of this subchapter or any rule or regulation issued thereunder shall be guilty of a class A misdemeanor and upon the first conviction be subject to a fine of at least five hundred dollars and upon any subsequent conviction be subject to a fine of one thousand dollars and/or imprisonment of at least fifteen days.

Cite as N.Y.C. Admin. Code § 20-275