Exotic Coins, Inc. v. Beacom, s. 82SA465
| Decision Date | 22 April 1985 |
| Docket Number | Nos. 82SA465,82SA329,s. 82SA465 |
| Citation | 699 P.2d 930 |
| Parties | EXOTIC COINS, INC., a Colorado corporation d/b/a Westminster Coin & Jewelry, Ltd.; Jeff Anderson d/b/a Westminster Gold and Silver Exchange; John Bielaski d/b/a Gold Dust Coin Center, Plaintiffs-Appellants, v. Paul Q. BEACOM in his official capacity as District Attorney for the County of Adams; Bert Johnson in his official capacity as Sheriff for the County of Adams; the City of Federal Heights, an Incorporated Municipality; Lester M. Bauer in his official capacity as Mayor for the City of Federal Heights; Doug Farris in his official capacity as Chief of Police for the City of Federal Heights; the City of Westminster, an Incorporated Municipality; Vi June in her official capacity as Mayor for the City of Westminster; Kenneth Huck in his official capacity as Chief of Police for the City of Westminster; J.D. MacFarlane in his official capacity as Attorney General for the State of Colorado, Defendants-Appellees. The PEOPLE of the State of Colorado, Plaintiff-Appellant, v. Jay David MELTZER, Defendant-Appellee. |
| Court | Colorado Supreme Court |
Nolan L. Brown, Dist. Atty., Mary A. Malatesta, Deputy Dist. Atty., Golden, for plaintiff-appellant in No. 82SA329.
Arthur M. Schwartz, P.C., Arthur M. Schwartz, Kay J. Rice, Irvin Borenstein, Denver, for defendant-appellee in No. 82SA329.
Arthur M. Schwartz, P.C., Arthur M. Schwartz, Kay J. Rice, Denver, for plaintiffs-appellants in No. 82SA465.
Paul Q. Beacom, Dist. Atty. for Adams County, Steven L. Bernard, Chief Trial Deputy, Brighton, for defendants-appellees in No. 82SA465.
These two cases, which we have consolidated for decision, present broad-ranging challenges to the constitutionality of the Purchasers of Valuable Articles Act, §§ 18-16-101 to -110, 8 C.R.S. (1984 Supp.) (the Act). We conclude that the Act can survive each of these assaults on its constitutional sufficiency. Therefore, we affirm the judgment of the Adams County District Court in Exotic Coins, Inc. v. Beacom, 82SA465, denying injunctive relief to restrain enforcement of the Act, and reverse the judgment of the Jefferson County District Court in People v. Meltzer, 82SA329, dismissing criminal charges for violation of the Act.
The Act was adopted "to aid law enforcement officials in the discovery and identification of sellers of stolen valuable articles and in the identification and recovery of stolen valuable articles by providing a mandatory record-keeping and reporting system by purchasers and by providing a holding period during which time such articles shall not be disposed of or altered in any manner." § 18-16-101, 8 C.R.S. (1984 Supp.). To accomplish these objectives, the Act requires that persons engaged in the business of buying valuable articles, consisting of precious or semiprecious metals or stones, obtain adequate identification from the seller, § 18-16-103, secure a written declaration of the seller's ownership, § 18-16-105(1), keep a register recording detailed information about each purchase, § 18-16-105, make the register available to any peace officer for inspection at any reasonable time, § 18-16-105(3), hold certain types of such property in unaltered form for thirty days from the date of purchase, § 18-16-106(1), and permit inspection of the articles by law enforcement officers during the holding period, id. Every purchaser must also provide weekly reports to the local law enforcement agency reflecting specified information about each purchase. § 18-16-107. Persons engaged in the business of buying valuable articles may not purchase such an item from any person under the age of eighteen years. § 18-16-104. The Act exempts from its requirements certain transactions by private collectors and certain purchases made exclusively in interstate commerce. § 18-16-109. Violation of the Act is a class 5 felony. § 18-16-108. The Act is set forth in full in Appendix A to this opinion.
The plaintiffs in Exotic Coins, Inc. v. Beacom are owners and operators of businesses in Adams County that buy and sell coins having numismatic value, and other articles containing gold, silver and other precious or semiprecious metals or stones. They sought declaratory and injunctive relief to obtain a declaration that the Act is unconstitutional and to restrain the defendant officials from enforcing the Act. The trial court issued a temporary restraining order but, after a later hearing, dissolved that order and denied a preliminary injunction. On July 27, 1982, after trial, the court ruled that the plaintiffs had failed to establish that the Act is unconstitutional, and denied a permanent injunction. The plaintiffs appealed, invoking the jurisdiction of this court because the constitutionality of a statute is in question. See § 13-4-102(1)(b), 6 C.R.S. (1973).
In People v. Meltzer, the defendant, Jay David Meltzer, was charged with three counts of violation of the Act. Meltzer is a merchant who deals in coins in his Lakewood, Colorado, store. The direct criminal In Exotic Coins, Inc. the appellant coin dealers urge that the Act is unconstitutional because (1) it infringes on the federal government's exclusive jurisdiction over the regulation of currency and gold and silver bullion, see U.S. Const. art. I, § 8, cl. 5, the United States Congress has preempted regulation of the subject matter, see U.S. Const. art. VI, cl. 2, and it places an impermissible burden on interstate commerce, see U.S. Const. art. I, § 8; (2) the inspection of records provisions violate the federal and state constitutional protections against unreasonable searches and seizures, see U.S. Const. amend. IV and Colo. Const. art. II, § 7; (3) it is unconstitutionally vague in contravention of U.S. Const. amend. XIV and Colo. Const. art. II, § 25; (4) it purports to establish a felony offense without requiring a culpable mental state, a violation of due process of law, see U.S. Const. amend. XIV and Colo. Const. art. II, § 25; (5) the reporting requirements are in conflict with the privilege against self incrimination embodied in U.S. Const. amend. V and Colo. Const. art. II, § 18. In People v. Meltzer, the trial court relied on the exclusive federal jurisdiction, preemption, and unreasonable search and seizure grounds in holding unconstitutional the provisions of the Act upon which the charges against Meltzer were based. On appeal, the People direct their argument for reversal to those issues. 1 In this opinion, we sometimes refer to the plaintiffs in Exotic Coins, Inc. and the defendant in People v. Meltzer collectively as the challengers, or the coin dealers. We also use that same terminology in describing only the plaintiffs in Exotic Coins, Inc. where the discussion is limited to that group's contentions.
information alleged that Meltzer purchased gold and silver coins without first securing adequate identification from the seller contrary to the requirements of section 18-16-103, purchased such coins from a person under the age of eighteen in violation of section 18-16-104, and failed to keep a register and record of the purchase of such coins as required by section 18-16-105. The defendant moved to dismiss the charges, asserting that the Act is unconstitutional in several respects. The trial court granted the motion, concluding that the provisions of the Act upon which the charges were based could not be constitutionally applied to the defendant because "the regulation of gold, its possession and transfer has been preempted by the Congress of the United States," with the result that "any attempted regulation by an individual state must fail." The court held that the charge based on the register and record requirements of section 18-16-105 was invalid for the additional reason that the provision allowing peace officers to inspect those records without first obtaining a search warrant contravenes the protections against unreasonable searches and seizures contained in the United States and Colorado constitutions. The People appealed from the judgment of dismissal. Jurisdiction over that appeal is also in this court because the constitutionality of the Act is in question. See § 13-4-102(1)(b), 6 C.R.S. (1973)
In Rathke v. MacFarlane, 648 P.2d 648 (Colo.1982) we considered the Act for the first time, in the context of an appeal by certain Denver merchants who were engaged in the business of buying and selling precious metals and stones and sought reversal of the denial of a preliminary injunction against enforcement of that statute. The appellants asserted the vagueness, unreasonable search, and federal supremacy arguments that are presented to us again today, and also contended that the Act was unconstitutional for additional reasons not advanced by the parties in the cases now before us. We sustained denial of the preliminary injunction, affirming the trial court's ruling that the merchants had not We begin with the familiar principle that legislation is presumed to be constitutional and a challenger has the burden of proving invalidity beyond a reasonable doubt. People v. Alexander, 663 P.2d 1024 (Colo.1983); Bollier v. People, 635 P.2d 543 (Colo.1981); People in the Interest of C.M. and E.M., 630 P.2d 593 (Colo.1981); People v. Edmonds, 195 Colo. 358, 578 P.2d 655 (1978); Flank Oil Co. v. Tennessee Gas Transmission Co., 141 Colo. 554, 349 P.2d 1005 (1960). We address the constitutional questions in the order stated above, and conclude that neither the merchants group in Exotic Coins, Inc. nor the defendant in People v. Meltzer has succeeded in carrying that heavy burden.
demonstrated a reasonable probability of success in their assaults upon the constitutionality of the Act. In so holding we did not discuss the constitutional arguments in detail. To resolve the present cases, however, it is necessary that we do so.
The challengers to the Act contend that it intrudes on the exclusive...
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