REPORT TITLE:
Personal property appraisers


DESCRIPTION:
This bill amends current law and adds new law in order to
regulate two industries, personal property appraisers and
platinum jewelry dealers.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2696
HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO THE REGULATION OF PERSONAL PROPERTY APPRAISERS AND
   PLATINUM JEWELRY DEALERS. 


BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  The purpose of this bill is to amend and
 
 2 promulgate new laws in order to offer more consumer protection in
 
 3 two areas, the selling of platinum jewelry and personal property
 
 4 appraisals.  
 
 5      Currently there is no licensure requirement or state
 
 6 regulations truly addressing the profession of personal property
 
 7 appraisal.  Yet, personal property appraisal is just as important
 
 8 as a real property appraiser when it comes to dealing with
 
 9 estates and probates.  Personal property appraisal affects the
 
10 valuation of estates and probates, which directly affects a
 
11 number of issues including the amount of federal and state taxes
 
12 to be paid, and the fees of executors, trust and estate officers. 
 
13      The case of platinum jewelry is more onerous.  Currently,
 
14 there is a practice of selling sterling silver and white gold as
 
15 the more valuable platinum. Although not all retailers of
 
16 platinum jewelry engage in this practice, it casts the whole
 
17 jewelry industry in a negative light.  This fraudulent practice
 
18 also has further reaching ramifications as tourists are also
 
19 falling victim to this fraud.
 

 
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 1      The legislature finds that both problems can be readily
 
 2 addressed through legislation modeled along the lines of current
 
 3 federal regulation.  Such legislation will protect consumers from
 
 4 further victimization in these areas.   
 
 5      SECTION 2.  Section 482D-6, Hawaii Revised Statutes, is
 
 6 amended to read as follows:
 
 7      "[§482D-6]  Quality marks; identifying trademarks.(a)  No
 
 8 article of merchandise bearing a quality or fineness mark made in
 
 9 whole or in part of gold or silver or of an alloy of either metal
 
10 shall be sold, offered for sale, imported into, or exported from
 
11 the State unless it is stamped, branded, or engraved with a
 
12 trademark that has been registered under the laws of the United
 
13 States [or applied for registration within thirty days of being
 
14 imported or offered for sale in the State].
 
15      (b)  Every article of merchandise which is composed of two
 
16 or more parts which are complete in themselves but which are not
 
17 identical in quality, and any one of the parts bears a quality
 
18 mark or stamp, each other part of that article of merchandise
 
19 shall bear a quality mark or stamp of like pattern and size
 
20 disclosing the quality of that other part.
 
21      (c)  Each identifying trademark applied to any article of
 
22 merchandise in compliance with this section shall be applied in a
 
23 position as close as possible to the quality mark or stamp and
 

 
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 1 shall be as clear and legible as the quality mark."
 
 2      SECTION 3.  Section 482D-1, Hawaii Revised Statutes, is
 
 3 amended to read as follows:
 
 4      "[§482D-1]  Definitions.  As used in this chapter:
 
 5      "Article of merchandise" means any goods, wares, works of
 
 6 art, commodities, or other things which may be lawfully kept or
 
 7 offered for sale, imported into, or exported from the State.
 
 8      "Person" means an individual, partnership, corporation, or
 
 9 any other form of business enterprise, capable of being in
 
10 violation of this chapter.
 
11      "Stamped" means branded[,]or engraved[, or printed] on the
 
12 article [or upon any sign, tag, card, label, box, package, cover,
 
13 or wrapper used to encase, enclose, display or promote the
 
14 article].
 
15      "Test" means analysis or assay to determine the fineness of
 
16 the gold, silver, or alloy.
 
17      "Trademark" shall include any trademark or trade name duly
 
18 registered under the laws of the United States."
 
19      SECTION 4.  Chapter 481B, Hawaii Revised Statutes, is
 
20 amended by adding a new section to be appropriately designated
 
21 and to read as follows:
 
22      "§481B-    Platinum products.  No article of merchandise
 
23 made in whole or in part of platinum, or of an alloy thereof,
 

 
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                                     H.B. NO.           
                                                        
                                                        

 
 1 shall be sold or offered for sale in, imported into, or exported
 
 2 from, the State, except in full compliance with the regulations
 
 3 known as Guides for the Jewelry, Precious Metals, and Pewter
 
 4 Industries adopted by the Federal Trade Commission, and
 
 5 amendments thereto."
 
 6      SECTION 5.  Chapter 482D, Hawaii Revised Statutes, is
 
 7 amended by adding a new section to be appropriately designated
 
 8 and to read as follows:
 
 9      "§482D-    Platinum; misuse of words.  (a)  It shall be an
 
10 unfair or deceptive trade or practice under section 480-2 to use
 
11 the words "platinum", "iridium", "palladium", "ruthenium",
 
12 "rhodium", and "osmium", or any abbreviation to mark or describe
 
13 all or part of an industry product if the marking or description
 
14 misrepresents the product's true composition.  The platinum group
 
15 metals ("PGM") are platinum, iridium, palladium, ruthenium,
 
16 rhodium, and osmium.
 
17      (b)  A misleading marking or description shall include but
 
18 not be limited to the following:
 
19      (1)  Use of "platinum" or any abbreviation, without
 
20           qualification, to describe all or part of an industry
 
21           product not composed throughout of 950 parts per
 
22           thousand pure platinum;
 
23      (2)  Use of "platinum" or any abbreviation accompanied by a
 

 
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 1           number indicating the parts per thousand of pure
 
 2           platinum contained in the product without mention of
 
 3           the number of parts per thousand of other PGM contained
 
 4           in the product, to describe all or part of an industry
 
 5           product that is not composed throughout of at least 850
 
 6           parts per thousand pure platinum; or
 
 7      (3)  Use of "platinum" or any abbreviation thereof, to mark
 
 8           or describe any product that is not composed throughout
 
 9           of at least 500 parts per thousand pure platinum.
 
10      (c)  Non-misleading uses of PGM words shall include but not
 
11 be limited to the following:
 
12      (1)  "Plat." or "Pt." for platinum; "Irid." or "Ir." for
 
13           iridium; "Pall." or "Pd." for palladium; "Ruth." or
 
14           "Ru." for ruthinium; "Rhod." or "Rh." for rhodium; and
 
15           "Osmi." or "Os." for osmium;
 
16      (2)  An industry product consisting of at least 950 parts
 
17           per thousand pure platinum may be marked or described
 
18           as "platinum";
 
19      (3)  An industry product consisting of 850 parts per
 
20           thousand pure platinum, 900 parts per thousand pure
 
21           platinum, or 950 parts per thousand pure platinum may
 
22           be marked "platinum", provided that the platinum
 
23           marking is preceded by a number indicating the amount
 

 
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 1           in parts per thousand of pure platinum, such as but not
 
 2           limited to, "950Pt.", "950Plat.", "900Pt.", "850Pt.",
 
 3           or "850Plat."; or
 
 4      (4)  An industry product consisting of at least 950 parts
 
 5           per thousand PGM, and of at least 500 parts per
 
 6           thousand pure platinum, may be marked "platinum",
 
 7           provided that the mark of each PGM constituent is
 
 8           preceded by a number indicating the amount in parts per
 
 9           thousand of each PGM, such as but not limited to,
 
10           "600Pt.350Ir.", "600Plat.350Irid.", or
 
11           "550Pt.350Pd.50Ir.", "550Plat.350Pall.50Irid.".
 
12      (d)  No article of merchandise bearing a platinum quality or
 
13 fineness mark made in whole or in part of platinum or platinum
 
14 group metals, including platinum or platinum group metal articles
 
15 made in part with a part of gold or of an alloy of gold, shall be
 
16 offered for sale, or imported into, or exported from, the State
 
17 unless it is stamped, branded, or engraved with a trademark that
 
18 has been registered with the United States Patent and Trademark
 
19 Office."
 
20      SECTION 6.  Section 560:3-707, Hawaii Revised Statutes, is
 
21 amended to read as follows:
 
22      "560:3-707  Employment of appraisers.  The personal
 
23 representative may employ a qualified and disinterested
 

 
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 1 appraiser, who shall be a member in good standing of either the
 
 2 International Society of Appraisers or the American Society of
 
 3 Appraisers, to assist in ascertaining the fair market value as of
 
 4 the date of the decedent's death of any asset the value of which
 
 5 may be subject to reasonable doubt.  Different persons may be
 
 6 employed to appraise different kinds of assets included in the
 
 7 estate[.], provided the appraiser is a member in good standing of
 
 8 either the International Society of Appraisers or the American
 
 9 Society of Appraisers,  The names and addresses, along with their
 
10 membership credentials in either the International Society of
 
11 Appraisers or the American Society of Appraisers, of any
 
12 appraiser shall be indicated on the inventory with the item or
 
13 items appraised."
 
14      SECTION 7.  Statutory material to be repealed is bracketed.
 
15 New statutory material is underscored.
 
16      SECTION 8.  This Act shall take effect upon its approval.
 
17 
 
18                           INTRODUCED BY:  _______________________