Recordkeeping for Pawnbrokers and Second-Hand Dealers and Related Inspections

RCNY tit. 38, ch. 21

in effect

38 RCNY § 21-01 Introduction.

§ 21-01 Introduction. 38 RCNY §§ 21-02 through 21-09 have been promulgated by the Police Commissioner to implement the provisions of Local Law No. 149 of 2013 ("the Local Law"), which establishes new requirements for recordkeeping by pawnbrokers and certain second-hand dealers in New York City. 38 RCNY §§ 21-10 and 21-11 generally codify certain, long-standing written recordkeeping requirements and address related administrative inspections. Editor's note: the Local Law referenced in this section amended §§ 20-267, 20-273, and 20-277 of the Administrative Code. (Amended City Record 8/5/2016, eff. 9/4/2016)

38 RCNY § 21-02 Definitions.

§ 21-02 Definitions. Dealer in Second-Hand Articles. "Dealer in Second-Hand Articles" or "Second-Hand Dealer" means a dealer in second-hand articles as such person is defined in § 20-264 of the New York City Administrative Code. Dealer Subject to Electronic Recordkeeping Requirements. "Dealer Subject to Electronic Recordkeeping Requirements" means a dealer in second-hand articles who deals in: (1) the purchase or sale of any second-hand manufactured article composed wholly or in part of gold, silver, platinum, or other precious metals; the purchase or sale of any old gold, silver, platinum or other precious metals; the purchase of articles or things comprised of gold, silver, platinum or other precious metals for the purpose of melting or refining; the purchase or sale of used electrical appliances excluding kitchen appliances; the purchase or sale of any used electronic equipment, computers or component parts of electronic equipment or computers; or (2) the purchase or sale of pawnbroker tickets or other evidence of pledged articles, or the redemption or sale of pledged articles, where the second-hand dealer is not a pawnbroker. Computer. "Computer" means a device which, by manipulation of electronic, magnetic, optical or electrochemical impulses, pursuant to an ordered set of data representing coded instructions or statements, can automatically perform arithmetic, logical, storage or retrieval operations, including but not limited to a tablet, laptop, desktop, gaming system, e-reader, MP3 player, or smartphone. Electronic Equipment. "Electronic Equipment" means a device capable of recording, storing, playing or displaying digital media, including but not limited to a tablet, laptop, desktop, gaming system, e-reader, MP3 player, cellphone, smartphone, or any other electronic device capable of voice communication. IMEI Number. "IMEI Number" means International Mobile Equipment Identity number. Member of the Police Department. "Member of the Police Department" means a sworn officer of the New York City Police Department (NYPD). Pawnbroker. "Pawnbroker" means a collateral loan broker as defined in Section 52 of the New York State General Business Law. Police Commissioner. "Police Commissioner" means the Commissioner of the New York City Police Department. Second-Hand Articles Store Log. "Second-Hand Articles Store Log" means the blank, triplicate form furnished by the Police Department to pawnbrokers and second-hand dealers pursuant to New York City Administrative Code §§ 20-267 and 20-277. (Amended City Record 8/5/2016, eff. 9/4/2016)

38 RCNY § 21-03 Pawnbrokers Required to Create and Upload Electronic Records.

§ 21-03 Pawnbrokers Required to Create and Upload Electronic Records. (a) In addition to the physical records of transactions required to be created and maintained pursuant to the provisions of the New York City Administrative Code and the New York State General Business Law, pawnbrokers are required to create an electronic record of each transaction at the time such transaction takes place. The electronic record must be uploaded immediately, or on a daily basis no later than midnight of the day of such transaction, to a web-based electronic data transfer service designated by the Police Commissioner. (b) The electronic records to be created and uploaded must include the following information: (i) the date, time, location and type of transaction; (ii) the serial number pre-printed on the physical record of such transaction; (iii) an accurate description of each article pawned or pledged, including type of article, manufacturer, make, model, serial number, IMEI number, inscriptions and distinguishing marks; (iv) an accurate description of each article purchased or sold, including type of article, manufacturer, make, model, serial number, IMEI number, inscriptions and distinguishing marks; and (v) one or more digital photographs reasonably capturing the likeness of each subject article, including any serial numbers or other identifying markings which are visible. Such photograph(s) must be created in a jpeg format.

38 RCNY § 21-04 Second-Hand Dealers Required to Create and Upload Electronic Records.

§ 21-04 Second-Hand Dealers Required to Create and Upload Electronic Records. (a) In addition to the physical records of transactions required to be created and maintained pursuant to the provisions of the New York City Administrative Code, second-hand dealers subject to electronic recordkeeping requirements must create an electronic record of certain transactions at the time such transactions take place, as provided in subdivision (c) or (d) of this section, as applicable. The electronic record must be uploaded immediately, or on a daily basis no later than midnight of the day of such transaction, to a web-based electronic data transfer service designated by the Police Commissioner. (b) Second-hand dealers subject to electronic recordkeeping requirements must create and upload electronic records of transactions involving (i) the purchase or sale of any second-hand manufactured article composed wholly or in part of gold, silver, platinum, or other precious metals; (ii) the purchase or sale of any old gold, silver, platinum or other precious metals, (iii) the purchase of articles or things comprised of gold, silver, platinum or other precious metals for the purpose of melting or refining, (iv) the purchase or sale of used electrical appliances excluding kitchen appliances; (v) the purchase or sale of any used electronic equipment, computers or component parts of electronic equipment or computers; or (vi) the purchase or sale of pawnbroker tickets or other evidence of pledged articles, or the redemption or sale of pledged articles, where the second-hand dealer is not a pawnbroker. (c) The electronic records to be created and uploaded by dealers subject to electronic recordkeeping requirements for transactions not involving the purchase or sale of pawnbroker tickets or other evidence of pledged articles, or the redemption or sale of pledged articles, must include the following information: (i) the date, time, and location; (ii) the serial number pre-printed on the physical record of such transaction; (iii) an accurate description of each article purchased or sold, including type of article, manufacturer, make, model, serial number, IMEI number, inscriptions and distinguishing marks; and (iv) one or more digital photographs reasonably capturing the likeness of each subject article, including any serial numbers or other identifying markings which are visible. Such photograph(s) must be created in a jpeg format. (d) The electronic records to be created and uploaded by second-hand dealers subject to electronic recordkeeping for transactions involving the purchase or sale of pawnbroker tickets or other evidence of pledged articles, or the redemption or sale of pledged articles, must include the following information: (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 amount loaned or advanced as it appears on such pawn ticket or other evidence; (iv) the day and hour of such purchase, sale or redemption, as the case may be; (v) the serial number pre-printed on the physical record of such transaction; (vi) the sum paid or received for such pawn ticket or other evidence, or the sum paid or received for the redeemed article or pledge; (vii) such description of a pledged article as appears on such pawn ticket or other evidence and an accurate description of every redeemed pledged article including type of article, manufacturer, make, model, serial number, IMEI number, inscriptions and distinguishing marks; and (viii) one or more digital photographs reasonably capturing the likeness of each subject article, including any serial numbers or other identifying markings which are visible. Such photograph(s) must be created in a jpeg format.

38 RCNY § 21-05 Descriptions of Items Containing Gold, Silver, Platinum or Other Precious Metals or Other Jewelry.

§ 21-05 Descriptions of Items Containing Gold, Silver, Platinum or Other Precious Metals or Other Jewelry. When providing descriptions of articles purchased, sold, pawned or redeemed which are composed wholly or in part of precious metals, or are otherwise commonly described as jewelry, pawnbrokers and second-hand dealers subject to electronic recordkeeping requirements must include the following information as relevant: (i) type of precious metal; (ii) weight of precious metal in karats; (iii) number of precious stones on item; (iv) type(s) of precious stones on item; (v) unique marks or inscriptions on item, including any specific words; and (vi) any visible alterations, modifications or damage to the item.

38 RCNY § 21-06 Descriptions of Electrical Appliances, Electronic Equipment and Computers.

§ 21-06 Descriptions of Electrical Appliances, Electronic Equipment and Computers. When providing descriptions of electrical appliances, electronic equipment, computers or their component parts, pawnbrokers and second-hand dealers subject to electronic recordkeeping requirements must include the following information as relevant: (i) manufacturer; (ii) make; (iii) model number; (iv) serial number; (v) IMEI number; (vi) identifying numbers including any numbers etched on the item pursuant to a crime prevention program of the New York City Police Department or any other entity; and (vii) any visible alterations, modifications or damage to the item, including altered or missing serial or IMEI numbers.

38 RCNY § 21-07 Creation and Uploading of Electronic Records.

§ 21-07 Creation and Uploading of Electronic Records. (a) The electronic records required by the Local Law and this Chapter must be created accurately and in English, and contain all required items of information. All digital photographs must reasonably capture the likeness of the subject article. Such electronic records and photographs must be uploaded immediately, or on a daily basis no later than midnight of the day of such transactions, to the web-based electronic data transfer service designated by the Police Commissioner for this purpose. (b) Prior to this Chapter taking effect, New York City Police Department personnel will advise in writing pawnbrokers and second-hand dealers subject to electronic recordkeeping requirements of the identity of the service designated by the Police Commissioner for this purpose. Police Department personnel will also provide the service's contact information to such pawnbrokers and second-hand dealers so that they may be instructed by the service regarding how to use the electronic recordkeeping system, and in order to request customer assistance from the service as needed. Within 60 days of this Chapter taking effect, all pawnbrokers and second-hand dealers subject to electronic recordkeeping requirements must register with the service, commence uploading information as required by the Local Law and by this Chapter, and obtain a notice from the service confirming that such uploading was successfully received by the service. (c) In addition to the specific items of information required by the Local Law and this Chapter for each transaction, each pawnbroker or second-hand dealer subject to electronic recordkeeping requirements must also provide to the service its own identifying information, including business name, address, phone number, fax number, Department of Consumer Affairs license number, and the store manager's name and email address, as well as an identifying number for each transaction and the identity of the business' employee or agent handling the transaction. (d) If a pawnbroker or second-hand dealer uploads an extract from their point-of-sale software in order to comply with the requirements of this Chapter, the file must be uploaded using the web upload mechanism provided on the designated electronic data transfer service's website. The extract format must be of a type supported by the electronic data transfer service. If the pawnbroker or second-hand dealer does not use an extract from their point-of-sale software, each transaction must be manually entered using the web interface provided by the service. (e) In the course of creating and uploading electronic records pursuant to this Chapter, pawnbrokers and second-hand dealers must complete all fields of information required, provided that if a particular item of information is unavailable, the pawnbroker or second-hand dealer must indicate such by inserting into the field "unavailable," "altered," or "not applicable," as appropriate. (f) If in the course of a day the pawnbroker or second-hand dealer does not conduct a transaction required to be reported electronically, the pawnbroker or second-hand dealer must upload a notice of no electronically reportable transactions to the electronic data service, providing such report no later than midnight of such day. This requirement applies to each individual day during which there occurs no transaction required to be reported electronically, except that where business of any kind is not conducted on that day (for example, where the business is closed on a weekend or holiday) the notice must be forwarded to the service no later than midnight of the next day during which business of any kind is conducted.

38 RCNY § 21-08 Required Equipment.

§ 21-08 Required Equipment. Pawnbrokers and second-hand dealers subject to electronic recordkeeping requirements must acquire and maintain in good working order the electronic equipment necessary to create, maintain and upload the electronic records required by the Local Law and by this Chapter, including but not limited to a computer with internet connection and a digital camera utilizing a jpeg file format so that the required information may be transmitted to the web-based electronic data transfer service designated by the Police Commissioner.

38 RCNY § 21-09 Retention of Records.

§ 21-09 Retention of Records. The electronic records created pursuant to this Chapter must be retained for a minimum of six years from the date of transaction.

38 RCNY § 21-10 Compliance with Written Record-Keeping and Reporting Requirements.

§ 21-10 Compliance with Written Record-Keeping and Reporting Requirements. (a) A member of the Police Department must provide each pawnbroker and second-hand dealer with a Second-Hand Articles Store Log and a copy of instructions. (b) A member of the Police Department must visit each business maintaining a Second-Hand Articles Store Log at least once every ten days to obtain a copy of the records from the Second-Hand Articles Store Log. Each visit by such member must be documented by the member in the appropriate portion of the Second-Hand Articles Store Log. (c) This section shall not apply to any pawnbroker or second-hand dealer that, to the satisfaction of the Police Department, uploads complete electronic records of transactions, including the information that would otherwise be required to be kept in the Second-Hand Articles Store Log, on a daily basis to a web-based electronic data transfer service designated by the Police Commissioner. (Added City Record 8/5/2016, eff. 9/4/2016)

38 RCNY § 21-11 Administrative Inspections.

§ 21-11 Administrative Inspections. (a) Members of the Police Department must conduct administrative inspections of each pawnbroker and second-hand dealer to ensure compliance with the record-keeping and reporting requirements set forth in the New York City Administrative Code and New York State General Business Law. These inspections must occur regularly, and in no event less often than once per quarter during the calendar year. In conducting these inspections, a member of the Police Department must: (1) Request to see the last twenty articles purchased or received in pledge by the pawnbroker or second-hand dealer that are still in inventory, which articles must be produced by the pawnbroker or second-hand dealer; (2) Compare the articles to the description of such articles listed in the Second-Hand Articles Store Log or the electronic record maintained pursuant to 38 RCNY §§ 21-03 and 21-04; and (3) Review the entry for each of these twenty items in the Second-Hand Articles Stores Log or electronic record for completeness, accuracy and legibility. (b) Pawnbrokers or second-hand dealers, including their employees, refusing to comply with an inspection conducted pursuant to this rule may be subject to civil as well as criminal penalties under the applicable provisions of local or state law. (Added City Record 8/5/2016, eff. 9/4/2016)

Source: City of New York, Charter, Administrative Code and Rules (American Legal Publishing XML export, codelibrary.amlegal.com)URL: https://codelibrary.amlegal.com/codes/newyorkcity/latest/NYCrules/0-0-0-78474Fetched: 10/24/2026