Rhode Island § 5-21-1 - Second-Hand Dealers

§ 5-21-1. Local licensing — Fees — Penalty — Record of transaction.

(a) The city or town council of any city or town is authorized to provide by ordinance for the issuing and revocation at pleasure of licenses to all persons selling, purchasing, bartering, and dealing in junk, old metals, and any other second-hand metal articles, and to all persons establishing, operating, or maintaining automobile junkyards, subject to any conditions and restrictions and for a term not exceeding one year that may be in the like manner prescribed; and also for charging and collecting fees for those licenses. The fees in the like manner prescribed shall not exceed the sum of one hundred dollars ($100) for the keeper of an establishment or storehouse for the reception of any junk, old metals, or second-hand metal articles which is not an automobile junkyard; the sum of five dollars ($5.00) for any foundry person or other person receiving the same for the purpose of melting or converting the junk, old metals, or second-hand metal articles into castings; the sum of five dollars ($5.00) for any gatherer of these items in any bag, wagon, or cart; or the sum of one hundred dollars ($100) for any person establishing, operating, or maintaining an automobile junkyard; and also to fix a penalty for carrying on that business without a license, or in violation of any ordinance or regulation made as authorized in this chapter, not exceeding for any one offense a fine of five hundred dollars ($500) or imprisonment not exceeding six (6) months.

(b) The ordinance shall provide that each person purchasing or receiving old or used metals other than junked automobiles or automobile parts shall maintain a record of each purchase or receipt. The record shall include the date of the transaction, the name, address, telephone number, and signature of the person from whom the old or used metals are purchased or received; a description of the old or used metals; and the price paid for the old or used metals. The records so kept shall be produced at the request of law enforcement officials.

(c) Businesses primarily engaged in the retail sale of the following goods, as expressly defined below in this subsection, are exempt from any licensing requirements imposed under this section: (1) Second-hand consignment goods; (2) Resale goods; (3) Thrift goods; and (4) Antiques. “Second-hand consignment goods” means used items, including, but not limited to, artwork, furniture, clothing, accessories, and books that are sold by a third party that receives a percentage of the revenue from the sale. “Resale goods” means goods, including, but not limited to, artwork, furniture, clothing, accessories, and books, that are purchased from the original owner and resold. “Thrift goods” means used items, including, but not limited to, artwork, furniture, clothing, accessories, and books, that are sold by or on behalf of a charity or nonprofit organization. “Antiques” means items made in an earlier period that are collected and considered to have value because they are beautiful, rare, old, or of high quality.