Obstacles could clear for some coin dealers to sell, trade at shows

Some telemarketers and infomercials have made it harder for legitimate coin dealers to do business, especially those dealing in small quantities at coin shows.

Rep. Joe Hoppe

SF3175 would “strike a reasonable balance between the very small dealers and hobbyist, who have a passion for their hobby versus the role of consumer protections,” advocates for the bill said in debate during a House Commerce and Regulatory Reform Committee earlier this session.

Sponsored by Rep. Joe Hoppe (R-Chaska) and Sen. David Tomassoni (DFL-Chisholm), the bill would further refine a law dealing with bullion sales passed in 2013. It passed the House 68-60 on Tuesday and previously the Senate 49-9, it now moves to the governor’s desk.

The bill would:

• change the definition of "bullion coin" to “bullion product;”
• require dealers and dealer representatives to register with the commissioner of commerce within 45 days of selling $25,000 worth of bullion product;
• provide that a surety bond is not required unless the dealer sells $25,000 in bullion product sales; and
• make changes to information a dealer must provide a customer; requires dealers to investigate consumer complaints and retain certain records pertaining to complaints.

Hoppe noted that there is not unanimous support for the bill as some say the consumer protections don’t go far enough, especially regarding dealer background checks.