April 22, 2008, Introduced by Rep. Sak and referred to the Committee on Commerce.
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 sections 1, 2, 3, 4, and 5 (MCL 445.401,
445.402, 445.403, 445.404, and 445.405), sections 1, 2, 3, 4, and 5
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 department or 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) In the case of a county, city, or village that has not
adopted an ordinance providing for the licensure of secondhand
dealers or junk dealers, the department is responsible for
licensure of any secondhand dealers and junk dealers within that
county, city, or village. Under such circumstances, the department
shall accept applications for licensure in a written or electronic
format as it determines appropriate. The department shall require
the applicant to 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 is only
required to accept applications for initial and renewal licensure
and issue initial and renewal licenses to qualified applicants. Any
administrative, civil, or criminal proceedings regarding licensees
are considered to be within the jurisdiction of the county, city,
or village or the local prosecutor. The department may request the
attorney general to proceed against a licensee.
(3) The department may promulgate rules under the
administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to
24.328, to enforce and administer subsection (2).
(4) (2)
This subsection section does
not require an internet
drop-off
store complying with subsection (3) (5), 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.
(5) (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.
Sec. 2. (1) The department or the mayor of a city or chief
executive
officer of a county or village may grant to any person ,
corporation,
copartnership, or firm, a license
authorizing that
person ,
corporation, copartnership, or firm to
carry on engage in
the
business of a second hand secondhand
dealer or junk dealer
subject
to in compliance with the provisions of this act if that
person qualifies for licensure under this act.
(2) The license shall designate the particular place where
that
person , corporation, copartnership, or firm shall carry on
engages in that business. The business shall be conducted only in
the
place designated in the license.
(3)
A license shall not be issued to any person , firm, or
corporation
desiring to conduct a junk business
in any residential
community where 65% or more of the property owners within a radius
of 1 city block of the contemplated junk business petition the
department or the issuing officer not to do so.
(4) The license shall be for the period of 1 year from date of
issuance unless sooner revoked for cause and is not transferable as
to ownership or location. The legislative body of any city, or the
trustees and chief executive officer of any county or village,
shall establish the fee for the processing and issuance of the
license in accordance with its charter or local ordinance, based
upon the cost of issuance and administration of that license. The
department shall charge a fee of not more than $50.00, based upon
the actual cost of the department in issuing the license. The
department may charge an initial application fee of $50.00 to cover
the cost of processing the application.
(5) The city, village, or county may inspect the premises of a
licensed
second hand secondhand or junk dealer during normal
business hours.
Sec. 3. As used in this act:
(a) "Automotive recycler" means a person who engages in
business primarily for the purpose of selling retail salvage
vehicle parts and secondarily for the purpose of selling retail
salvage motor vehicles or manufacturing or selling a product of
gradable scrap metal or a person employed as a salvage vehicle
agent as that term is defined in section 56c of the Michigan
vehicle code, 1949 PA 300, MCL 257.56c.
(b) "Department" means the department of labor and economic
growth.
(c) (b)
"Industrial scrap" means
materials that are a direct
product or by-product of any form of manufacturing, shaping, or
cutting
process from a person , company, corporation,
copartnership,
or firm whose principal business is
the
manufacturing, shaping, or cutting of materials at a fixed place of
business.
(d) (c)
"Internet drop-off store"
means a person ,
corporation,
or firm that contracts with other
persons ,
corporations,
or firms to offer its personal
property or other
valuable thing for sale, purchase, consignment, or trade through
means of an internet website and meets the conditions described in
section 1(3).
(e) (d)
"Local law enforcement
agency" means the police agency
of the city, village, or township, or if none, the county sheriff
of the county in which the internet drop-off store conducts
business.
(f) "Person" means an individual, corporation, partnership,
copartnership, limited liability company, or other legal entity.
(g) (e)
"Scrap processor" means a
person, utilizing machinery
and equipment and operating from a fixed location, whose principal
business is the processing and manufacturing of iron, steel,
nonferrous metals, paper, plastic, or glass, into prepared grades
of products suitable for consumption by recycling mills, foundries,
and other scrap processors.
(h) (f)
"Second hand "Secondhand
dealer" or "junk dealer"
means
any person , corporation, or member or members of a
copartnership
or firm whose principal business is
that of
purchasing,
selling, exchanging, storing, or receiving second hand
secondhand articles of any kind, scrap metals, cast iron, old iron,
old steel, tool steel, aluminum, copper, brass, lead pipe or tools,
stainless
steel, or lighting and plumbing
fixtures. Second hand
Secondhand dealer or junk dealer does not include a scrap
processor, an automotive recycler, or a junkyard that deals
principally
in industrial scrap and that
is specifically licensed
by a city, village, or county as a junkyard.
Sec.
4. (1) A second hand secondhand
dealer or junk dealer
shall post in a conspicuous place in or upon its place of business
a sign having its name and occupation.
(2)
A second hand secondhand or junk dealer shall keep a
separate book or other record, written or electronic in a format
acceptable to the local law enforcement agency, open to inspection
by a member of a local law enforcement agency, in which shall be
written or entered in the English language at the time of the
purchase or exchange of any article a description of the article
and the weight, amount, and number of those articles regarding the
transaction, the name, description, fingerprint, operator's or
chauffeur's license or state identification number, registration
plate number, and address of the person from whom the article was
purchased and received, the person or place from which the article
was obtained, and the day and hour when the purchase or exchange
was made as well as the location from which the item was obtained.
,
if applicable. The record
shall indicate the method of payment.
Each entry shall be numbered consecutively.
(3) Within 24 hours after a request from a local law
enforcement agency, a licensee shall provide a copy of the
information recorded in subsection (1).
Sec. 5. (1) The articles purchased or exchanged shall be
retained by the purchaser or licensee for at least 15 days before
disposing of them, in an accessible place in the building where the
articles are purchased and received. A tag shall be attached to the
articles in some visible and convenient place, with the number
written thereupon, to correspond with the entry number in the book
or other record. Payment for an item shall be made only by a check
or an electronic payment system.
(2) The purchaser or licensee shall prepare and deliver on
Monday of each week to the chief of police or chief law enforcement
officer of the local unit of government in which such business is
carried
on, before 12 o'clock 12
noon, a legible and correct copy
written in the English language from the book or other record,
containing a description of each article purchased or received
during the preceding week, the hour and day when the purchase was
made,
and the description of the person from whom it was purchased,
and the amount, weight, and number of articles regarding the
transaction. The statement shall be verified by the person
subscribing
his or her name thereto to
the statement.
(3) This section does not apply to old rags, waste paper, and
household goods except radios, televisions, record players, and
electrical appliances and does not require the purchaser to retain
articles
purchased from individuals, firms, or corporations a
person
having a fixed place of business after
those articles shall
have been reported.
Enacting section 1. This amendatory act takes effect 120 days
after the date it is enacted into law.