INDIANAPOLIS | Cash for gold stores would be regulated similar to pawn shops under legislation approved 96-1 by the Indiana House Thursday.
House Bill 1188, sponsored by state Rep. Tom Dermody, R-LaPorte, requires precious metal dealers who purchase used jewelery or previously sold products containing gold, silver or platinum to follow specific rules intended to discourage the sale of stolen items.
The legislation, which now goes to the Senate, mandates a cash for gold store employee verify the identity of every seller based on a photo identification card.
Each item purchased would have to be photographed, reported to police and held for 10 days before it could be melted down or otherwise disposed of.
Cash for gold stores would also have to register with the Indiana secretary of state and either own their building or operate under a lease lasting at least 12 months.
Retail jewelry stores that also deal in precious metals would be exempt from the new regulations if they paid at least $20,000 in sales tax in the prior year.