Second-hand dealers in Colonie could be facing an even more stringent law than one under consideration on the town level with the impending introduction of countywide legislation.
Albany County Legislator Gary W. Domalewicz is expected in July to introduce legislation that would restrict businesses from outside of New York state from doing business inside Albany County and force second-hand dealers to hold any items purchased for a total of 21 days.
Domalewicz said the bill has yet to even be finished, but on Tuesday, June 21, Jason Pierce of ASE Metal Recovery and president of the Albany County Dealers Association put out a press release slamming the bill for the burden it will place on businesses.
The ways in which it would limit the various members and business owners is profound, Pierce said, adding that lawmakers sometimes don’t take in a broad range of perspectives before drafting a bill. `Unfortunately, lawmakers often look at the problem without all of the facts. They draft a law they believe will be the solution but they don’t quite see how it will negatively impact all those affected by the law.`
Pierce said the bill is similar to one passed in Suffolk County. The law requires dealers to report all secondhand articles to the police commissioner or chief of police at the end of each business day in an approved form and to be open for inspection at all reasonable times. Both Pierce and Finkle Jewelers owner Marty Finkle said they’ve found the law isn’t enforced in Suffolk County, and said it’s something they wouldn’t follow in Albany County.
`I may have to order a shank or a stone from someone from outside of New York state,` Finkle said. `What they’re telling us is I would have to hold that for 21 days. I don’t think it’s constitutional. It’s not going to be anything we’d ever adhere to.`
In Pierce’s press release, he said the law would violate the Commerce Clause in the United States Constitution, which would mean the law applies differential treatment of in-state and out-of-state economic interests or could be considered protectionist.
`Should legislators move to adopt the law, the Dealers Association would have the right, and they believe the grounds, to file for an immediate injunction,` the press release states.`
It also claims the law would violate the Supremacy Clause in the Constitution, which disallows any law that would prohibit business anywhere in the U.S. or abroad.
Pierce also is against having to report to the police on a daily basis. He said that on Monday, June 20, ASE purchased 60,000 diamonds in just one day.
`Imagine trying to report and account for those diamonds,` he said. `I would have to hire additional staff members just to satisfy the reporting requirements of this law.`
Finkle said that he thinks the best way for any records to be kept is by getting a copy of the seller’s license and taking a quick photo of an item as a recording in a book that his business received, say, a 14-karat gold chain.
`Do you know how many are out there?` he said. `If you put it up with a picture, people can say, ‘Wow, that’s my ring.’`
He also argued that the price of gold fluctuates daily. It is something he feels law enforcement doesn’t understand, but he hopes they would be willing to work with the industry to figure out a law that would be more business-friendly.
`I hope we’re going to work it out so it will work for all of us,` he said. `I want to solve their problem if they see it as a law enforcement problem.`
Domalewicz said he would not comment on the details of the bill, as he said it is nearly finished but is still in the process of being tweaked. He did say it is a bill that has bipartisan support from legislators such as Wanda Willingham, a Democrat, and Patrice Lockart, a Republican.
`If this upsets some of the gold, jewelry dealers and pawn shop dealers, then so be it,` he said. `My intention is not to hurt the businesses in Albany County. My intention is to protect the citizens of Albany County from burglary and robbery and to recover stolen items.`
Colonie Police Chief Steve Heider was happy about the law, as he said on Thursday, June 23, that he had just received a formal copy and there were only a few portions of the legislation he would add. His police department is trying to pass a law that is less stringent than the one proposed by Domalewicz.
`I think they’ve done a very good job in identifying the key factors,` he said. `We’re very pleased so far.`
Heider said the law appears to be protecting local second hand dealers. He recalled local businesses complaining about out-of-state businesses that come in for one weekend with cash-for-gold events.
`I look at that portion of the law trying to protect the local businessman in Albany County, so that out-of-state and out-of-country people aren’t flooding into here and taking their business away,` he said.
Heider was pleased to see the 21-day hold, as Colonie proposed to do a five-day hold for merchandise sold to second-hand dealers.
But businessman Bill Panitch of W.S. Panitch Rare Coins said it would greatly hurt his business.
Panitch deals in only rare coins, paper money and certain kind of bullion coins. He said that the prices of bullion coins fluctuate by the minute and have a profit margin of 1 to 2 percent. If a 21-day hold was put in place, it could bring an end to his business.
`I would either have to shut the door permanently or offer so little for the merchandise that customers will quickly drive elsewhere to conduct their business,` he said in an email.
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