COIN DEALERS WIN BIG VICTORY IN CALIFORNIA

COIN Dealers Win Victory Against Proposed California "Pawnbrokers" Law

(Sacramento, CA) – Compelling arguments by coin and collectibles
dealers and collectors, and a persuasive letter from the American
Numismatic Association warning next year's San Jose convention would
be in jeopardy, helped stop a proposed new California law. The
legislation would have placed burdensome regulations on dealers and
their retail customers.
Several thousand e-mails and faxes from dealers and collectors
denouncing the measure reportedly were received from by legislative
officials.
"The proposed law was approved by the California Senate in May, but
now has been defeated at least temporarily in an Assembly committee.
It if had been approved it would have been a major disaster for the
hobby and coin business," said Barry Stuppler, of Woodland Hills,
California, President of the California Coin & Bullion Merchants
Association.
"Everyone's letters and e-mails were very successful in Sacramento.
Diane Piret of the Industry Council for Tangible Assets was our best
resource. She constantly in touch by phone, and her lobbying advice
and skills were crucial in this matter," said Stuppler.
Senate Bill 1893 would have required dealers to report all
transactions, hold purchased merchandise for 30 days and fingerprint
all customers who sell second-hand merchandise. The legislation was
backed by California pawnbroker organizations.
The State Assembly Committee on Business and Professions heard
testimony on June 22, but there were not enough votes to move the bill
out of committee, effectively halting it. However, Stuppler warns
there may be an attempts to keep the Senate-approved measure alive, or
to start fresh with the legislation next year.
"We've won a major victory, but only for now. We have to remain
vigilant because those who want this measure may try again to get it
approved. I have asked our lobbyist in Sacramento, Carl Brakensiek,
to monitor all potential legislation that could be amended by the
pawnbrokers," said Stuppler.
"I heard from one Assembly member that he received thousands of faxes
and e-mails from numismatists who urged him to vote ‘no' on this
bill."
Stuppler and dealer Terry Woodward of S & T Coins, Turlock,
California, were among those who testified at the Assembly hearing.
Stuppler successfully spent weeks trying to rally dealers, numismatic
organizations and collectors to fight against the proposed law.
The following influential organizations and individuals were among
those who sent letters opposing SB 1893:
American Numismatic Association; A-Mark Financial Corporation;
AuctionDrop, Inc.; Auctions by the Bay (Allen Michaan); California
Board of Equalization (Claude Parrish); Collectors Universe, Inc.;
eBay, Inc.; Expos Unlimited (Ronald J. Gillio); Heritage Numismatic
Auctions, Inc.; ISold It; PayPal; Professional Coin Grading Service;
Industry Council For Tangible Assets (Diane Piret); and the
Professional Numismatists Guild (Robert Brueggeman).
In a letter to Lou Correa, Chairman of the Assembly's Committee on
Business and Professions, ANA Executive Director, Christopher
Cipoletti, wrote:
"The Association hosts two of the largest coin shows in the nation,
the World's Fair of Money ® and the National Money Show ™. These
conventions travel around the country and currently are scheduled to
be held in San Jose, California in July 2005 and in Sacramento,
California in March 2007.
"Should Senate Bill 1893 pass, the Association could be forced to
cancel both shows; over 90 percent of our participants come from
states outside of California, and would most likely not participate if
they would be subjected to the requirements of this Bill. The
American Numismatic Association strongly opposes Senate Bill 1893.
"Approximately 6,000 to 10,000 thousand dealers, collectors, and
families attend our spring shows, while our summer shows generate
attendance from 15,000 to 25,000. These individuals generate millions
of dollars in revenue and produce a positive economic impact in the
local communities. Our spring show uses approximately 2500 hotel
rooms with the commensurate economic impact on the communities we
visit. Our summer show uses approximately 5000 hotel rooms with the
commensurate economic impact on the communities we visit.
"If Senate Bill 1893 passes, the ANA will be forced to look for
alternative locations for conventions and will likely remove any
California site from future consideration. We hope that the
California legislature will consider the significant economic benefit
that an ANA show can produce with tourism and tax dollars, and as a
result defeat Senate Bill 1893."
Professional Numismatists Guild President, Steve Ivy, co-chairman of
Heritage Galleries, Dallas, Texas, stated in a letter to the Committee
on Business and Professions:
"Our members attend dozens of coin conventions in California each
year. In fact, California is by far the largest market for rare coins
in the U.S., and thus, it is no accident that it hosts the most active
and vibrant coin shows in the country. It would be a shame if
California lost that distinction because of what the PNG considers
unnecessary legislation, that is to say, SB 1893.
"Indeed, I would estimate that if SB 1893 passes, most of the coin
shows in California would be cancelled, costing the State millions of
dollars annually, not to mention the loss of jobs and revenue to local
hotels and businesses."
In his letter opposing SB 1893, Collectors Universe, Inc. Chief
Executive Officer, Michael Haynes, wrote:
"If eBay is a reasonable estimate of second-hand goods in the markets,
coins represent less than one percent of all items offered. On
balance, it is unreasonable and burdensome for small business coin
dealers to be included in a reporting requirement where the average
value of an item is very small and the aggregate value of all the
coins in the market represents less than one percent of all the
targeted second-hand goods."
Professional Coin Grading Service President, David Hall, wrote to
committee members:
"Senate Bill 1893 is a disaster for California coin dealers and it is
totally unnecessary, solving nothing and costing way too much for
merchants to implement.... If Senate Bill 1893 becomes law, it will
chase most dealers out of California, it's that unworkable. Our firm
will probably re-locate to Nevada or Texas. Please stop this
horrible, anti-coin collector, anti-coin dealer bill from becoming
law."
For additional information on the opposition to the legislation,
contact Barry Stuppler, President of the California Coin & Bullion
Merchants Association, 5855 Topanga Canyon Blvd., Suite 330, Woodland
Hills, CA 91367. Phone: (818) 592-2800.
Or contact Diane Piret, Industry Affairs Director of the Industry
Council for Tangible Assets, P.O. Box 316, Belle Chasse, LA 70037.
Phone: (504) 392-0023.

"Barry Stuppler" wrote in message
om
COIN Dealers Win Victory Against Proposed California "Pawnbrokers" Law

(Sacramento, CA) - Compelling arguments by coin and collectibles
dealers and collectors, and a persuasive letter from the American
Numismatic Association warning next year's San Jose convention would
be in jeopardy, helped stop a proposed new California law. The
legislation would have placed burdensome regulations on dealers and
their retail customers.
Several thousand e-mails and faxes from dealers and collectors
denouncing the measure reportedly were received from by legislative
officials.
snip

Way to go, Barry!!! I was one of the little guys who sent emails to the
folks in Sacramento urging them to vote NO on this bill.

--
©¿©¬
~
Ed Hendricks
Santa Maria, CA

Ed Hendricks wrote:
:: "Barry Stuppler" wrote in message
:: om
::: COIN Dealers Win Victory Against Proposed California "Pawnbrokers"
::: Law
:::
::: (Sacramento, CA) - Compelling arguments by coin and collectibles
::: dealers and collectors, and a persuasive letter from the American
::: Numismatic Association warning next year's San Jose convention would
::: be in jeopardy, helped stop a proposed new California law. The
::: legislation would have placed burdensome regulations on dealers and
::: their retail customers.
::: Several thousand e-mails and faxes from dealers and collectors
::: denouncing the measure reportedly were received from by legislative
::: officials.
:: snip
::
:: Way to go, Barry!!! I was one of the little guys who sent emails to
:: the folks in Sacramento urging them to vote NO on this bill.
::
:: --
:: ©¿©¬
:: ~
:: Ed Hendricks
:: Santa Maria, CA






I'm just curious as to why this legislation is so bad (other than being an
inconvenience, and something that hasn't been done before).

Is there some logical rationale for this fingerprinitng/recordkeeping to be
done in pawnshops, and if so, why not in coin transactions?

Before you come burn my house down...let me say that it seems really
invasive, and I am totally against it for this reason. Just playing devil's
advocate to get the issues straight in my peabrain ;-)




--
For now, I'm just trying to get this to work!


:-D

Huzzah! Even if the bill comes back in a year, now the consequences of
doing so are on the table. I suspect the Long Beach show would move to Las
Vegas. Not that I wouldn't mind going to Vegas for a show, but I've managed
some good cherrypicks at Long Beach. I'd have to re-establish mojo in a new
location.

John Baumgart

"Barry Stuppler" wrote in message
om...
COIN Dealers Win Victory Against Proposed California "Pawnbrokers" Law

(Sacramento, CA) - Compelling arguments by coin and collectibles
dealers and collectors, and a persuasive letter from the American
Numismatic Association warning next year's San Jose convention would
be in jeopardy, helped stop a proposed new California law. The
legislation would have placed burdensome regulations on dealers and
their retail customers...

"XpipedreamR" wrote in message
...
Ed Hendricks wrote:
:: "Barry Stuppler" wrote in message
:: om
::: COIN Dealers Win Victory Against Proposed California "Pawnbrokers"
::: Law
:::
::: (Sacramento, CA) - Compelling arguments by coin and collectibles
::: dealers and collectors, and a persuasive letter from the American
::: Numismatic Association warning next year's San Jose convention would
::: be in jeopardy, helped stop a proposed new California law. The
::: legislation would have placed burdensome regulations on dealers and
::: their retail customers.
::: Several thousand e-mails and faxes from dealers and collectors
::: denouncing the measure reportedly were received from by legislative
::: officials.
:: snip
::
:: Way to go, Barry!!! I was one of the little guys who sent emails to
:: the folks in Sacramento urging them to vote NO on this bill.
::
:: --
:: ©¿©¬
:: ~
:: Ed Hendricks
:: Santa Maria, CA






I'm just curious as to why this legislation is so bad (other than being an
inconvenience, and something that hasn't been done before).

Is there some logical rationale for this fingerprinitng/recordkeeping to
be
done in pawnshops, and if so, why not in coin transactions?

Before you come burn my house down...let me say that it seems really
invasive, and I am totally against it for this reason. Just playing
devil's
advocate to get the issues straight in my peabrain ;-)

I tend to agree with you. If some sellers of second hand merchandise have
to go through some special hoops, they all should. Maybe the next thing is
fingerprinting people having garage sales.

This kind of legislation is of dubious merit. I suspect the pawn industry
wants it to reduce competition, thats almost always what licensing of anyone
is really about. Public safety is what they always claim, but the real
reason is to keep down the competition.





--
For now, I'm just trying to get this to work!


:-D

In article ,
"John Baumgart" wrote:

Huzzah! Even if the bill comes back in a year, now the consequences of
doing so are on the table. I suspect the Long Beach show would move to Las
Vegas. Not that I wouldn't mind going to Vegas for a show, but I've managed
some good cherrypicks at Long Beach. I'd have to re-establish mojo in a new
location.

When you buy coins at the California shows and you are not a California
resident, do you still have to pay the state sales tax? (I know that at
some point - $1000 IIFC - there's no tax; but I'm talking about
situations where there is a tax to pay.)

Scot Kamins
--
"Speak your truth, even as your voice quakes."

XpipedreamR wrote:
I'm just curious as to why this legislation is so bad (other than being an
inconvenience, and something that hasn't been done before).

If I read the postings correctly, it's bad because a coin dealer could
not buy a coin at a show and sell it later in the show. Instead, all
coins purchased would have to be held 30 days before sold. The
fingerprinting, etc. requirements are added hassle.

Is there some logical rationale for this fingerprinitng/recordkeeping to be
done in pawnshops, and if so, why not in coin transactions?

Pawnshops have historically been places stolen goods are sold.

It appears pawn shops in California either thought to get rid of
competition (by making it harder for other second hand dealers to do
business) or thought that if this law were passed, the complaints would
be so loud they could get the pawn shop rules repealed with the rest.

Where I live (Colorado) there are requirements like this by type of
merchandise (e.g. jewelry). The local coin store sometimes buys jewelry
and they need to keep records and hold items 30 days. The owner is also
careful about who he buys from.

Tom

California politicians have finally done something intellgent? Double
Faint!

"Scot Kamins" wrote in message
...
In article ,
"John Baumgart" wrote:

Huzzah! Even if the bill comes back in a year, now the consequences of
doing so are on the table. I suspect the Long Beach show would move to
Las
Vegas. Not that I wouldn't mind going to Vegas for a show, but I've
managed
some good cherrypicks at Long Beach. I'd have to re-establish mojo in a
new
location.

When you buy coins at the California shows and you are not a California
resident, do you still have to pay the state sales tax? (I know that at
some point - $1000 IIFC - there's no tax; but I'm talking about
situations where there is a tax to pay.)

Maybe. Whenever I buy something, the dealer quotes me the "out the door"
price, which may or may not include the sales tax he may or may not have to
remit to California.

John Baumgart