HB-6003, As Passed House, June 11, 2008

SUBSTITUTE FOR

HOUSE BILL NO. 6003

     A bill to amend 1917 PA 350, entitled

"An act to regulate and license second hand dealers and junk

dealers; and to prescribe penalties for the violation of the

provisions of this act,"

by amending the title and section 1 (MCL 445.401), section 1 as

amended by 2006 PA 675.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

TITLE

     An act to regulate and license second hand secondhand dealers

and junk dealers; to provide for certain powers and duties to

certain state agencies and departments; and to prescribe penalties

for the violation of the provisions of this act.

     Sec. 1. (1) A person , corporation, copartnership, or firm

shall not carry on engage in the business of dealer in second hand

secondhand goods or junk dealer in any of the counties, cities, or

villages of this state without having first obtained, obtaining

from the mayor of the city or the chief executive officer of the

county or village where the business is to be carried on, conducted

a license under this act authorizing that person , corporation,

copartnership, or firm to carry on engage in that business.

     (2) The department of labor and economic growth, by

promulgation of a rule under the administrative procedures act of

1969, 1969 PA 306, MCL 24.201 to 24.328, shall create a model

ordinance for licensure of secondhand dealers and junk dealers. The

model ordinance shall be designed for use by a county, city, or

village that has not adopted or enacted an ordinance regulating

secondhand dealers and junk dealers. Under that model ordinance,

the department shall provide that the applicant demonstrate

compliance with any applicable state laws or local ordinances

regarding the conduct of a business within this state and the

county, city, or village. The department shall allow the county,

city, or village to charge fees in an amount to cover the issuance

and administrative costs of the licensure. The model ordinance is

applicable and has the effect of law in a county, city, or village,

unless the county, city, or village has adopted an ordinance that

is substantially equivalent to the model ordinance and is at least

as strict as the model ordinance. A county, city, or village in

which the model ordinance is applicable may at any time adopt an

ordinance that is, at a minimum, substantially equivalent to the

model ordinance and at least as strict as the model ordinance. The

model ordinance would no longer be applicable on and after the

effective date of the ordinance enacted by the county, city, or

village.

(3) (2) This subsection section does not require an internet

drop-off store complying with subsection (3) (4), or a person

engaged in the sale, purchase, consignment, or trade of personal

property or other valuable thing for himself or herself, to obtain

a license under this act.

(4) (3) An internet drop-off store in compliance with the

following conditions is exempt from licensure as a second hand

secondhand dealer or junk dealer under this act:

     (a) Has a fixed place of business within this state except

that he or she exclusively transacts all purchases or sales by

means of the internet and the purchases and sales are not

physically transacted on the premises of that fixed place of

business.

     (b) Has the personal property or other valuable thing

available on a website for viewing by photograph, if available, by

the general public at no charge, which website shall be searchable

by zip code or state, or both. The website viewing shall include,

as applicable, serial number, make, model, and other unique

identifying marks, numbers, names, or letters appearing on the

personal property or other valuable thing.

     (c) Maintains records of the sale, purchase, consignment, or

trade of the personal property or other valuable thing for at least

2 years, which records shall contain a description, including a

photograph, if available, and, if applicable, serial number, make,

model, and other unique identifying marks, numbers, names, or

letters appearing on the personal property or other valuable thing.

     (d) Provide the local law enforcement agency with any name

under which it conducts business on the website and access to the

business premises at any time during normal business hours for

purposes of inspection.

     (e) Within 24 hours after a request from a local law

enforcement agency, provide an electronic copy of the seller's or

consignor's name, address, telephone number, driver license number

and issuing state, the buyer's name and address if applicable, and

a description of the personal property or other valuable thing as

described in subdivision (c). The provision of information shall be

in a format acceptable to the local law enforcement agency but

shall at least be in a legible format and in the English language.

     (f) Provide that payment for the personal property or other

valuable thing is executed by means of check or other electronic

payment system, so long as the payment is not made in cash. No

payment shall be provided to the seller until the item is sold.

     (g) Immediately remove the personal property or other valuable

thing from the website if the local law enforcement agency

determines that the personal property or other valuable thing is

stolen.

     Enacting section 1. This amendatory act takes effect 120 days

after the date the rules adopted under section 1 are filed with the

secretary of state.