Subchapter I. General Provisions
TITLE 24
Professions and Occupations
CHAPTER 23. PAWNBROKERS, SECONDHAND DEALERS AND SCRAP METAL PROCESSORS
Subchapter I. General Provisions
§ 2301. Definitions.
As used in this chapter:
(1) "Antique dealer" means a person, company, corporation, or member or members of a partnership or firm who sells exclusively goods that are at least 50 years old.
(2) "Exempted Internet sales" means offers for sale of items of secondhand personal property available on a website where the items listed for sale:
a. May be viewed by any member of the general public at no charge;
b. May be searched by any member of the general public, at no charge, by the zip code or state in which the secondhand personal property offered for sale is located;
c. Are assigned a unique item listing number by the website; and
d. Are provided, in a timely manner, at no additional charge to the secondhand dealer, to a unified, nationally available database, that is searchable by item description and by seller, that may be accessed by a law enforcement agency with adequate security features and privacy protections, upon confirmation that such access is reasonably necessary for an ongoing investigation of a crime.
Exempted Internet sales by a secondhand dealer that would otherwise be subject to this section are not exempt from the requirements of §§ 2305, 2306, and 2307 of this title and the secondhand dealer must provide law enforcement agencies that have jurisdiction over the location of the dealer's business premises with the names under which it conducts business on the websites where the items are listed for sale and must record and preserve for inspection the information that would be required to be collected and reported under § 2302 of this title.
(3) "Flea markets" means any person, company, corporation, or member or members of a partnership or firm who buys and sells used goods who either:
a. Operates less than 4 days a week from the same location; or
b. Sells goods from a location that is not a fixed building that they own or lease.
(4) "Pawnbroker" means any person, company, corporation, or member or members of a partnership or firm who:
a. Engages in the business of lending money on the deposit or pledge of personal property or other valuable things, other than causes in action, securities, or written evidences of indebtedness; or
b. Purchases personal property with an expressed or implied agreement or understanding to sell it back at a subsequent time at a stipulated price; or
c. Lends money upon goods, wares or merchandise pledged, stored or deposited as collateral security.
(5) "Scrap metal processor" means any person, company, corporation, or member or members of a partnership or firm engaged in the business of selling or receiving any worn out or discarded metal, old iron, used plumbing fixtures, other metals, automobiles, automobile parts, chain, copper, lead, brass, or other parts of machinery.
(6) "Secondhand dealer" means any person, company, corporation, or member or members of a partnership or firm whose storefront business includes any volume of selling or receiving previously owned, used, rented or leased tangible personal property excluding motor vehicles. The term "secondhand dealer" shall not include auction houses, flea markets, antique dealers or motor vehicle dealers. This chapter, as it relates to secondhand dealers, does not apply to:
a. The sale of secondhand goods at events commonly known as "garage sales," "yard sales," or "estate sales";
b. The sale or receipt of secondhand books, magazines, post cards, postage stamps;
c. The sale or receipt of used merchandise donated to recognized nonprofit, religious, or charitable organizations or any school-sponsored association for which no compensation is paid;
d. The sale or receipt of secondhand furniture;
e. The sale or receipt of secondhand clothing and shoes;
f. The sale of goods exclusively via the Internet that meet the definition of "exempted Internet sales" set forth below; or
g. Federal firearms licensed dealers.
24 Del. Laws, c. 162, § 1; Code 1915, § 1196; Code 1935, § 1382; 46 Del. Laws, c. 136, § 1; 24 Del. C. 1953, § 2301; 70 Del. Laws, c. 186, § 1; 75 Del. Laws, c. 284, § 1; 77 Del. Laws, c. 185, § 2.;
§ 2302. Reporting requirements.
(a) Every pawnbroker and secondhand dealer shall create a record and provide information on a form to be supplied by the Delaware State Police or on another form that has been previously approved by the law-enforcement agency having primary jurisdiction over the area in which the pawnbroker and secondhand dealer's business is located.
(b) Every scrap metal processor shall create a record and provide information on a form to be supplied by the Delaware State Police or on another form that has been previously approved by the law-enforcement agency having primary jurisdiction over the area in which the scrap metal processor's business is located with respect to the following articles purchased or otherwise acquired:
(1) Copper;
(2) Silver;
(3) Gold;
(4) Brass;
(5) Platinum; or
(6) Bronze.
Scrap metal processors will collect a photograph of the seller and all information pertaining to the seller (required on the approved form) for every transaction regardless of value.
(c) The forms required by subsections (a) and (b) of this section shall be completed immediately after any articles or goods have been purchased or acquired.
(d) Pawnbrokers, secondhand dealers and scrap metal processors shall record the name of the person making the record entry and shall make that information available to police.
(e) The information provided on the forms under this section shall be stored and maintained by the pawnbroker, secondhand dealer or scrap metal processor for a period of 1 year and shall be provided to police immediately upon request.
(f) The Secretary of the Department of Safety and Homeland Security may promulgate rules and regulations that allow for the completion and filing of electronic forms and information.
24 Del. Laws, c. 162, § 5; Code 1915, § 1200; 28 Del. Laws, c. 81, § 1; Code 1935, § 1386; 47 Del. Laws, c. 263, § 1; 24 Del. C. 1953, § 2313; 70 Del. Laws, c. 186, § 1; 75 Del. Laws, c. 284, § 1; 76 Del. Laws, c. 349, §§ 1, 2; 77 Del. Laws, c. 185, § 3; 77 Del. Laws, c. 338, § 1.;
§ 2303. Pawn ticket and memorandum.
(a) Any pawnbroker shall furnish to each applicant or customer a ticket on which is printed a number corresponding with the number used to identify the article placed in pawn, and also the amount given in cash, together with all charges and the total amount to be paid when the article is to be redeemed.
(b) Any pawnbroker shall, at the time the loan is made on goods or articles, deliver to the person pawning or pledging such goods or articles, a memorandum or note, signed by such person and containing an account and description of the goods or articles pawned or pledged. No charge shall be made or received by any pawnbroker for any such ticket entry, memorandum or note.
24 Del. Laws, c. 162, §§ 5, 6; Code 1915, §§ 1200, 1201; 28 Del. Laws, c. 81, § 1; Code 1935, §§ 1386, 1387; 47 Del. Laws, c. 263, § 1; 24 Del. C. 1953, § 2307; 75 Del. Laws, c. 284, § 1.;
§ 2304. Holding period.
(a) Every pawnbroker and secondhand dealer subject to this chapter must keep for a period of 18 days, including weekends and holidays, subject to inspection by any police officer of Delaware, all goods, wares and merchandise purchased or received from any person before selling, shipping or otherwise disposing of the same. This does not prohibit any person from securing valuable goods, wares and merchandise in a vault, safe or safety deposit box or other similarly secured storage area on the normal business premises so long as such secured items are readily available for inspection by a police officer.
(b) Every scrap metal processor subject to this chapter must keep for a period of 7 days, not including holidays or weekends, all copper, silver, gold or brass articles purchased or received from any person before selling, shipping or otherwise disposing of same, except that there shall be no holding period for articles meeting all of the following criteria:
(1) That are purchased or received from a commercially licensed entity;
(2) That are of the type commonly purchased or received from commercial entities; and
(3) For which payment is made directly to the commercial entity and not to the individual delivering the articles.
(c) Such holding periods are not applicable when the person from whom the goods were acquired or pledged desires to redeem, repurchase, or recover the goods, provided the dealer or pawnbroker can produce the record of the original transaction with verification that the customer is the person from whom the goods were originally acquired.
(d) A pawnbroker, secondhand dealer, or scrap metal processor shall not destroy, disfigure or obliterate identification marks or cause the identity of an article to otherwise be destroyed so long as the article continues to be in that person's possession.
(e) Law enforcement officers may require that an item be held for an additional 30 days beyond the requirements of subsection (a) of this section if they know or have reason to believe that the property is missing or stolen.
24 Del. Laws, c. 162, § 11; Code 1915, § 1206; Code 1935, § 1392; 47 Del. Laws, c. 264, § 1; 24 Del. C. 1953, § 2311; 75 Del. Laws, c. 284, § 1; 76 Del. Laws, c. 209, § 1; 76 Del. Laws, c. 349, §§ 3, 4.;
§ 2305. Inspection of premises and records.
(a) Every pawnbroker, secondhand dealer and scrap metal processor subject to this chapter shall maintain at a place of business designated on the license records of all information required by this chapter, together with a photocopy of government-issued photo identification, for a period of at least 1 year from the date the transaction was recorded.
(b) The records required to be maintained in subsection (a) of this section shall, during regular business hours, be subject to inspection by a law enforcement officer of Delaware, or by the Attorney General or any Deputy Attorney General.
(c) Such inspection shall consist of an examination on the premises of the inventory and required records to determine whether the records and inventory are being maintained on the premises as required by this chapter.
24 Del. Laws, c. 162, § 7; Code 1915, § 1202; Code 1935, § 1388; 24 Del. C. 1953, § 2314; 71 Del Laws, c. 176, § 31; 75 Del. Laws, c. 284, § 1.;
§ 2306. Stolen goods: notice to police.
Any pawnbroker, secondhand dealer or scrap metal processor may seize any goods offered to such person for sale or as a pledge or pawn, which such person has reason to believe have been stolen. Such person shall immediately notify the law enforcement agency with jurisdiction over the premises where the sale or offer or pledge took place or where the goods are currently located. Any person acting in compliance with this section shall be immune from civil or criminal penalties if that person acts in good faith.
24 Del. Laws, c. 162, § 14; Code 1915, § 1209; Code 1935, § 1395; 24 Del. C. 1953, § 2316; 70 Del. Laws, c. 186, § 1; 75 Del. Laws, c. 284, § 1.;
§ 2307. Prohibited transactions.
(a) No pawnbroker, secondhand dealer or scrap metal processor subject to this chapter shall knowingly purchase or acquire any article, ware or merchandise:
(1) From any person or persons under the age of 18 unless that person or person is:
a. Recycling aluminum cans; or
b. Accompanied by a parent, grandparent or guardian;
(2) From any person under the influence of any intoxicating liquor or drug when such condition is visible or apparent; or
(3) Which has an altered, obliterated or otherwise tampered with serial number or identifying marking.
(b) No pawnbroker subject to this chapter shall take or receive as a pledge or pawn any artificial limb or wheelchair.
24 Del. Laws, c. 162, §§ 9, 10; 24 Del. Laws, c. 163, § 1; Code 1915, §§ 1204, 1205; Code 1935, §§ 1390, 1391; 47 Del. Laws, c. 169, § 1; 24 Del. C. 1953, §§ 2309, 2310, 2312; 70 Del. Laws, c. 186, § 1; 75 Del. Laws, c. 284, § 1.;
§ 2308. Penalties.
Whoever violates this chapter, except where another penalty is provided, shall be guilty of a misdemeanor and, if convicted, may be fined not more than $10,000.
24 Del. Laws, c. 162, § 16; Code 1915, § 1211; Code 1935, § 1397; 46 Del. Laws, c. 135, § 1; 24 Del. C. 1953, § 2318; 75 Del. Laws, c. 284, § 1; 76 Del. Laws, c. 209, § 2; 77 Del. Laws, c. 185, § 4.;
§ 2309. Local regulations.
Nothing in this chapter shall preclude political subdivisions of the State and municipalities from enacting laws more restrictive than the provisions of this chapter, but such laws shall be in addition to, not in lieu of, the regulations set forth in this chapter.
75 Del. Laws, c. 284, § 1.;