§ 82-93. Exceptions.

This division applies only to the crafted precious metals that have been sold or used primarily for personal, family or household purposes. The following are exceptions to the requirements of this division.

(1)

Precious metal extracted, recovered, or salvaged from industrial by-products or industrial waste products. This division does not apply to a person whose purchase or sale of precious metal or a product made of precious metal is merely incidental to the person's business of extracting, recovering, or salvaging precious metal from industrial by-products or industrial waste products.

(2)

Dental, pharmaceutical, or medical application of crafted precious metal. This division does not apply to a dental, pharmaceutical, or medical application of crafted precious metal.

(3)

Crafted precious metal acquired from another dealer who previously made required reports. This division does not apply to crafted precious metal acquired in good faith in a transaction involving the stock-in-trade of another dealer who previously made the reports concerning that metal as required by this division if:

a.

The selling dealer delivers to the acquiring dealer a written document stating that the reports have been made;

b.

The acquiring dealer submits a copy of the statement to the chief of police or the sheriff of the county in which the selling dealer is located; and

c.

Each dealer involved in the transaction retains a copy of the statement until the third anniversary of the date of the transaction.

(4)

Crafted precious metal acquired in dissolution or liquidation sale. This division does not apply to crafted precious metal acquired in a nonjudicial sale, transfer, assignment, assignment for the benefit of creditors, or consignment of the assets or stock-in-trade, in bulk, or a substantial part of those assets, of an industrial or commercial enterprise, other than a dealer, for the voluntary dissolution or liquidation of the seller's business, or for disposing of an excessive quantity of personal property, or property that has been acquired in a nonjudicial sale or transfer from an owner other than a dealer, the seller's entire household of personal property, or a substantial part of that property, if the dealer:

a.

Gives written notice to the chief of police or the sheriff of the county in which the dealer's business is located that a reporting exemption is being claimed under this section;

b.

Retains in the dealer's place of business, until the third anniversary of the date of the transaction, a copy of the bill of sale, receipt, inventory list, or other transfer document; and

c.

Makes the record retained available for inspection by a peace officer.

(5)

Crafted precious metal acquired in judicial sale. This division does not apply to crafted precious metal acquired in a sale made:

a.

By any public officer in the officer's official capacity as a trustee in bankruptcy, executor, administrator, receiver, or public official acting under judicial process or authority; or

b.

On the execution of, or by virtue of, any process issued by a court.

(6)

Crafted precious metal acquired as payment for other crafted precious metal by person in business of selling to consumers. This division does not apply to crafted precious metal acquired in good faith as part or complete payment for other crafted precious metal by a person whose principal business is primarily that of selling directly to the consumer crafted precious metal that has not been subject to a prior sale.

(7)

Crafted precious metal acquired from or reported to governmental agency. This division does not apply to crafted precious metal:

a.

Acquired as surplus property from the United States, a state, a subdivision of a state, or a municipal corporation; or

b.

Reported by a dealer as an acquisition or a purchase, or reported as destroyed or otherwise disposed of, to:

1.

A state agency under another law of this state; or

2.

A municipal or county office or agency under another law of this state or a municipal ordinance.

(8)

Crafted precious metal acquired by person licensed under Texas Pawnshop Act. This division does not apply to crafted precious metal acquired by a person licensed under V.T.C.A., Finance Code ch. 371.

(Ord. No. 10,780, § 4, 12-13-07)