Houston Police Department Burglary and Theft Division Precious Metals Unit Public Safety and Homeland Security Committe

1. PRECIOUS METALS UNIT Houston Police Department Burglary and Theft Division Precious Metals Unit Public Safety and Homeland Security Committee Meeting Presentation August 28, 2012

2. Issue/Problem • Precious Metals Value – Last 10 years • 674% increase in gold • 1000% increase in silver • High End Burglaries • Over 4,800 burglaries of $10,000 or more in stolen precious metals, stones, gems, or jewelry (July ‘10 – June ‘11) *

3. Trends in Jewelry Crime • 2007 Monetary Loss of Jewelry Related Crime $21,512,228 • 2011 Monetary Loss of Jewelry Related Crime $41,165,888 • Close to 100%increase in 4 years.

4. Precious Metals Unit Goals • Conduct Inspections • Ensure the businesses are recording, reporting and holding property correctly per current law and complying. • Offer assistance and knowledge to other investigative divisions when called upon. • Liaison between the business community and law enforcement to establish healthy working relationships.

5. Precious Metals Unit Goals • Revise current city ordinance to assist law enforcement in tracking stolen crafted precious metals. • Educate precious metals dealers on state law, current city ordinance and proposed changes to city ordinance. • Training officers and businesses on how to use Electronic Web Based Reporting System.

6. Community Involvement/Public Education: • Informing the citizens about ways to make their valuables easier to identify. • Jewelry Appraisal • Etching Identifiers in the jewelry • Taking Photos of the jewelry • Using a web based inventory system (www.leadsonline.com)

7. Business Education • Reviewing the existing laws with businesses: • Texas State Law • Houston City Municipal Code • Business Association Meetings: • Disseminating information • Gaining feedback • Listening to concerns • Fostering a working relationship with Secondhand Precious Metals Dealers in the City of Houston.

8. Two Permits Required

9. State Law Requirements Texas Administrative Code, Title 7, Part 5, Chapter 85, Subchapter B, Division 2, Rule 85.2001 …..dealer must prepare a transaction report form….. Including the date of purchase Including the name and address of the dealer's business location; Including the name and address where the dealer purchased the precious metal;

10. Reporting Requirements (Cont.) The dealer's registration number; The full name of the seller, as listed on the seller's driver's license A physical description of the seller to include:     (A) date of birth;     (B) height;   (C) eye color;      (D) gender; The seller’s address at the time of the transaction; The seller's driver's license number A description of the crafted precious metal purchased

13. Precious Metals Unit Recommends: A clear photocopy or digital photograph of all items purchased by the dealer; Web-based reporting

14. Web Based Reporting System

17. Proposed Changes to Municipal Ordinance Hold period for records. Change from 2 years to 3 years to match state law. Time period to report to police. Change from no mention in ordinance to daily. Electronic reporting. Change from reporting by mail to electronic reporting. Pay by check. Change from no mention in ordinance to pay by check.

18. Proposed Changes to Municipal Ordinance Expand definition of crafted precious metals. Change from Gold, Silver, or Platinum to Gold, Silver, Platinum, Palladium, Iridium, Rhodium, Osmium, Ruthenium, or an alloy of those metals. Thumb print. Change from no mention in ordinance to a clear thumb print of the seller. Digital photograph of jewelry. Change from no mention in ordinance to a clear digital image of the Jewelry.

19. Proposed Changes to Municipal Ordinance • Digital photograph of seller. Change from no mention in ordinance to a clear digital image of the seller. • Temporary dealer requirements. Change from no specific mention in ordinance to…. • Must be licensed by the jurisdiction where the permanent business is located and address must be visible on the license.

20. Proposed Changes to Municipal Ordinance • A copy of this license is to be submitted to COH with the business application for a temporary license. • Temporary dealer displays all applicable license numbers on all advertisements. • License numbers on advertisements. Change from no mention in ordinance to … must provide all applicable and valid city and state license numbers….

21. Proposed Changes to Municipal Ordinance • Move Crafted Precious Metals Section. Move from Article II to it’s own section in Article IV. • Add “purchase” to Sections… • Definition: …offering of used items for sale, “purchase”, or trade… • Penalty for Violations: …owner/operator/person permits the sale or “purchase” of any goods… • License fees: Any dealer described herein who desires to sell or “purchase” items at shows…

22. Dealer Committee Members Harold Reese, Owner Harold Reese Jewelry Dominic Rodriguez, Owner Gold Rush Jose Rodriguez The Goldmine Gold, Silver, and Jewelry Buyers Sam Rodriguez Houston Gold Merchants H.R. “Bob" Sandler, Owner Designer Jewels inc Brad Schweiss, Owner Houston Gold Exchange Steven Silver, Owner Jewelry Appraisal Services Rex Solomon, President Houston Jewelry Connie Stagner, Owner Acori Diamonds and DesignBilly Stagner, Owner Juan Tavarez, Owner GSS (Gold Simple Secure)

23. Dealer Committee Members David Baker, President Global Stone and Metal Rick Crumly, Owner ITB Amelia Culwell, Owner Gold & Silver Buyers Scott Dekilder, Owner/manager Alpha Gold Services Aron Frank, Owner Amco Jewelry Co, inc Veronica Guajardo Aztec Gold & Silver Buyers Amber Gustafsa, Owner Ambersdesigns.com David Harleston Royal Coin Hal Martin, Owner Hal Martin's Bruce A. Pollak, Owner Houston Estate Jewelry Liquidators