§ 7-88. Required recordkeeping; transaction report form, scrap value estimation, receipt.  


Latest version.
  • (a)

    A dealer shall keep at his place of business a record of all purchases of crafted precious metals in a real-time electronic web-based database, in a form and method approved by the chief of police. The record shall be updated daily, with a full description in English of each transaction in which personal property is purchased or otherwise received at the dealer's licensed place of business.

    (b)

    The dealer must prepare a transaction report form for each transaction. The report form shall be preprinted and pre-numbered, and shall contain all the following information:

    (1)

    The date of purchase.

    (2)

    The name and address of the dealer's permanent business location.

    (3)

    The name and address where the dealer purchased the crafted precious metal, if the location is different than the dealer's permanent business location and the transaction takes place in person.

    (4)

    The dealer's registration number.

    (5)

    The full name of the seller, as listed on the seller's driver's license or personal identification certificate as defined by Texas Occupations Code § 1956.001(8).

    (6)

    A physical description of the seller to include date of birth, height, eye color, and gender.

    (7)

    The physical address where the seller is residing at the time of the transaction.

    (8)

    The seller's driver's license number or personal identification number from the following unexpired forms of identification:

    a.

    A driver's license number from Texas or another state within the United States;

    b.

    An identification card issued by the Texas Department of Public Safety;

    c.

    A United States military identification card; or

    d.

    A United States passport or visa, or other identification issued by the United States government as described in the administrative rules promulgated pursuant to section 7-93 of this Code.

    (9)

    A clear digital photograph of the seller, in accordance with the administrative rules issued by the director and the chief of police.

    (10)

    A clear thumbprint from the seller.

    (11)

    The seller's certification that the seller's name and address, as well as the description of the crafted precious metal, are true and complete.

    (12)

    The seller's representation that the seller has the right to possess and sell the property.

    (13)

    A description of the crafted precious metal purchased by the dealer, accompanied by a clear digital image of each item purchased, including the:

    a.

    Total number of items purchased by the dealer;

    b.

    Type of each item (e.g., fork, tray, chain, ring);

    c.

    Type, color and purity of each kind of metal purchased (e.g., 10 karat white gold, 0.925 sterling silver);

    d.

    Weight in troy ounces, grams, or pennyweights for each kind of metal;

    e.

    Amount paid by the dealer for each kind of metal;

    f.

    Color (e.g., clear, blue, green), number, and approximate size (e.g. small, medium, large) of any stones and which item(s) included those stones;

    g.

    Size or length of each item (e.g., size 7, 18 inches);

    h.

    Any discernible serial numbers;

    i.

    Any engravings, inscriptions, distinctive markings, or designs;

    j.

    Gender for which any jewelry item was manufactured, if identifiable; and

    k.

    Any unique markings that are not visible and identifiable from the photographic images.

    (14)

    The total amount paid to the seller by the dealer.

    (15)

    The notice regarding oversight of precious metals dealers by the state's Office of Consumer Credit Commissioner and the office's contact information for consumer complaints as required by Title 7 of the Texas Administrative Code, Part 5, Ch. 85, Subch. B, Div. 2, Rule 85.2001(a).

    Additional information is permissible on the transaction report form as long as it is not misleading with respect to rights arising under the law.

    (c)

    The dealer shall maintain a scrap value estimation record for each purchase of crafted precious metal, including a reasonable good faith estimate of the each item's scrap value or the percentage of scrap value that the dealer will pay the seller. The scrap value estimation is not required on the seller's receipt copy of the transaction report form, but must be included on the dealer's copy, which must be maintained for a period of not less than three years, pursuant to Texas Occupations Code § 1956.063.

    (d)

    The dealer shall submit the required records to the real-time electronic web-based database by the close of business on each day on which the dealer is open for business. Failure to comply with any provision of this section shall be grounds for the revocation of or the refusal to issue or renew a dealer's license. Any person violating any provision of this section shall be punished as provided by section 1-6 of this code.

    (e)

    The dealer, his agents, or employees shall supply a consecutively-numbered receipt to the seller or transferor of the property. The receipt shall be dated on the actual date of the transaction and shall list the items sold or otherwise transferred. A printed version of the record input to the real-time electronic web-based database shall satisfy this requirement. An accurate copy or record of receipts shall be retained for a period of not less than three years.

    (f)

    A dealer and every person engaged in the business of buying, trading or otherwise receiving crafted precious metals in any form shall, upon request, submit and exhibit the various business records required to be maintained under this section for inspection and copying to any peace officer or authorized inspector of the director. Failure to maintain or to so permit the examination or copying of the records when requested shall be a misdemeanor.

(Ord. No. 2013-111, § 18, 2-6-2013; Ord. No. 2016-964 , § 5, 12-7-2016)