April 18, 2013, Introduced by Reps. Tlaib, Roberts, Darany, Hovey-Wright, Haugh, Brown, Cochran, Kivela, Santana, Muxlow, Knezek, Banks, Dillon, Talabi, Stallworth, Hobbs, Kosowski, Townsend, Zemke, Stanley, Geiss, LaVoy, Durhal, Kandrevas, Zorn, Outman, Faris, Greimel and Oakes and referred to the Committee on Regulatory Reform.
A bill to amend 2008 PA 429, entitled
"Nonferrous metal regulatory act,"
by amending the title and sections 1, 3, and 5 (MCL 445.421,
445.423, and 445.425).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
TITLE
An
act to regulate the purchase and sale of certain nonferrous
metals;
to provide for disclosures by certain persons regarding
certain
transactions; to require the creation of records for
certain
purposes and for the use of certain databases by certain
persons;
scrap metal and other items
that contain ferrous or
nonferrous metal to scrap metal dealers; to require sellers to
provide and scrap metal dealers to obtain certain information at
the time of a purchase transaction; to require that scrap metal
dealers implement and maintain records of their purchase
transactions and to make those records available for law
enforcement purposes; and to provide for penalties and remedies.
Sec. 1. This act shall be known and may be cited as the
"nonferrous
"scrap metal regulatory act".
Sec. 3. As used in this act:
(a)
"Dealer" means any person that is not a first purchaser
who
purchases nonferrous metals from any seller. Dealer includes,
but
is not limited to, a person, whether or not licensed under
state
law or local ordinance, that operates a business as a scrap
metal
recycler, scrap processor, secondhand and junk dealer, or
other
person who purchases any amount of nonferrous metal on a
regular,
sporadic, or 1-time basis. Dealer does not include an
automotive
recycler regulated by and complying with section 217 of
the
Michigan vehicle code, 1949 PA 300, MCL 257.217; section 18 of
the
motor vehicle service and repair act, 1974 PA 300, MCL
257.1318;
or section 2 of 1986 PA 119, MCL 257.1352, when engaging
in
activities that meet the definition of automotive recycler as
defined
in section 2a of the Michigan vehicle code, 1949 PA 300,
MCL
257.2a.
(b)
"Documentation" means a signed statement that indicates
where
the person obtained the article, that the person is
authorized
to sell the article, or other evidence that reasonably
demonstrates
ownership of the article and the source of the
article.
(a) (c)
"Ferrous metal" means a
metal that contains
significant quantities of iron or steel.
(b) (d)
"First purchaser" means
the first buyer of a
manufactured
product containing item
that contains ferrous or
nonferrous metal in a retail or business-to-business transaction.
Persons
purchasing nonferrous metal A
person that purchases scrap
metal, or other personal property described in section 10, in
violation
of this act, or an automotive recyclers, pawnshops,
recycler,
pawnshop, scrap metal recyclers, and
recycler, or scrap
processors
are processor is not considered a first
purchasers.purchaser.
(c) "Governmental unit" means a subdivision, agency,
department, county, parish, municipality, or other unit of the
government of the United States, this state, another state, or a
foreign country.
(d) (e)
"Industrial or commercial account
customer" means any
person,
operating a person that
operates from a fixed location ,
that
and is a seller of ferrous or nonferrous scrap metal
to a
scrap
metal recycler pursuant to dealer
under a written agreement.
(e) (f)
"Nonferrous metal" means
a metal that does not contain
significant quantities of ferrous metal but contains copper, brass,
platinum-based metals, aluminum, bronze, lead, zinc, nickel, or
alloys of those metals.
(f) (g)
"Person" means an
individual, partnership,
corporation, limited liability company, joint venture, trust,
association, or other legal entity.
(g) (h)
"Public fixtures fixture"
means articles containing
nonferrous
metal that are used or located in areas open to the
public
and include, but are not limited to, utility access covers;
street
light and fixtures; road and bridge guard rails; highway or
street
signs; water meter covers; traffic directional and control
signs;
traffic light signals; telecommunications cable; utility-
related
articles; and historical markers.an
item that contains
ferrous or nonferrous metal and is owned or under the exclusive
control of a governmental unit. The term includes, but is not
limited to, a street light pole or fixture, road or bridge
guardrail, traffic sign, traffic light signal, or historical
marker.
(h) "Purchase transaction" means a purchase of scrap metal by
a scrap metal dealer. The term does not include any of the
following:
(i) The purchase of 1 or more used or secondhand, distressed,
or salvage vehicles or vehicle parts by a used or secondhand
vehicle dealer or used or secondhand vehicle parts dealer that is
licensed as a dealer under section 248 of the Michigan vehicle
code, 1949 PA 300, MCL 257.248, and is acting within the scope of
that dealer's license.
(ii) The purchase of 1 or more used or secondhand, distressed,
or salvage vehicles, vehicle parts, or vehicle scrap by a vehicle
scrap metal processor, vehicle salvage pool operator, or foreign
salvage vehicle dealer that is licensed as a dealer under section
248 of the Michigan vehicle code, 1949 PA 300, MCL 257.248, and is
acting within the scope of that dealer's license.
(iii) The purchase of 1 or more used or secondhand, distressed,
or salvage vehicles, vehicle parts, or vehicle scrap by an
automotive recycler that is licensed as a dealer under section 248
of the Michigan vehicle code, 1949 PA 300, MCL 257.248, if the
transaction is authorized under section 217c of the Michigan
vehicle code, 1949 PA 300, MCL 257.217c; section 18 of the motor
vehicle service and repair act, 1974 PA 300, MCL 257.1318; or
section 2 of 1986 PA 119, MCL 257.1352.
(iv) The purchase of scrap metal by a mill, foundry, die
caster, or other manufacturing facility that purchases scrap metal
for its own use in the production of metal articles or materials
and does not in the ordinary course of its business purchase scrap
metal for resale.
(i) "Record" means a paper, electronic, or other generally
accepted method of storing information in a retrievable form.
(j) "Scale operator" means the employee of a scrap metal
dealer who operates or attends a scale that is used to weigh the
scrap metal in a purchase transaction.
(k) "Scrap metal" means ferrous or nonferrous metal, or items
that contain ferrous or nonferrous metal, that are sold or offered
for sale for the value of the ferrous or nonferrous metal they
contain rather than their original intended use; ferrous or
nonferrous metal removed from or obtained by cutting, demolishing,
or disassembling a building, structure, or manufactured item; or
other metal that cannot be used for its original intended purpose
but can be processed for reuse in a mill, foundry, die caster, or
other manufacturing facility.
(l) "Scrap metal dealer" means a person that buys or sells
scrap metal and is not a first purchaser. The term includes, but is
not limited to, a person, whether or not licensed under state law
or local ordinance, that operates a business as a scrap metal
recycler, scrap processor, secondhand and junk dealer, or other
person that purchases any amount of scrap metal on a regular,
sporadic, or 1-time basis. The term does not include a governmental
unit that buys or sells scrap metal.
(m) (j)
"Scrap metal recycler"
means a person that purchases
ferrous or nonferrous metal that is intended for recycling or
reuse, whether regarded as a scrap processor, core buyer, or other
similar business operation.
(n) (k)
"Scrap processor" means
that term as defined in
section 3 of 1917 PA 350, MCL 445.403.
(o) (l) "Seller"
means any individual or a person that either
regularly, sporadically, or on a 1-time basis receives
consideration from any other person from the purchase by a scrap
metal
dealer of nonferrous scrap metal
offered by that seller.
Sec.
5. (1) A dealer shall do all All
of the following apply
to a scrap metal dealer:
(a)
Produce and maintain records as required under section
7(2).
(b)
Participate in a database meeting the requirements of
section
11.
(c)
Tag and hold any nonferrous metal as provided for in
section
9.
(d)
Pay a seller by a method capable of being traced from the
dealer
to the seller. Payment by cash or currency of more than
$50.00,
barter, or trade is not considered a payment that complies
with
the requirement of this subdivision. Payment of cash in any
amount
in a transaction involving predominantly copper articles is
considered
a violation of this subdivision.
(e)
In the case of a transaction involving nonferrous metal,
verify
that the seller is at least 16 years of age.
(a) Unless subdivision (b) applies, and except as provided in
subdivision (c), a scrap metal dealer shall only pay a seller with
1 of the following in a purchase transaction:
(i) A check or money order. A scrap metal dealer shall make and
retain a photograph or digital or electronic image of the delivery
of the check or money order to the seller or individual acting on
behalf of the seller in the purchase transaction.
(ii) An electronic payment card or encrypted receipt that may
only be converted to cash in an automated teller machine that is
located on the seller's premises; is used for the sole purpose of
dispensing cash in connection with purchase transactions; and
provides a digital or electronic image of the dispensing of the
cash to the seller.
(b) Except as provided in subdivision (c), in a purchase
transaction of any of the following items, a scrap metal dealer
shall not pay the seller until 3 business days after the date of
the transaction, and shall only pay the seller after that period by
making a direct deposit or electronic transfer to the seller's
account at a financial institution or mailing a check or money
order, payable to the seller, to a street address provided to the
dealer by the seller and not to a post office box:
(i) Catalytic converters, unless the seller is an automotive
recycler as defined in section 2a of the Michigan vehicle code,
1949 PA 300, MCL 257.2a.
(ii) Air conditioners, air conditioner evaporator coils or
condensers, or parts of air conditioner evaporator coils and
condensers.
(iii) Copper wire, including copper wire that is burned in whole
or in part to remove the insulation.
(c) In a purchase transaction with an industrial or business
customer, a scrap metal dealer may pay that customer in any manner
described in subdivision (a) or (b).
(d) Unless the transaction is with an industrial or commercial
customer, a scrap metal dealer shall not accept barter or a trade
or exchange of scrap metal or other personal property.
(e) A scrap metal dealer in a purchase transaction shall
examine the identification presented under subsection (2)(a) by the
seller or individual acting on behalf of the seller, and if the
identification presented displays the date of birth of the
individual, confirm that the individual is at least 16 years old
based on that date of birth.
(f) A scrap metal dealer shall not purchase scrap metal that
is not delivered in or on a vehicle licensed and titled for use on
public highways.
(g) A scrap metal dealer shall ensure that it trains each
scale operator, purchaser, and supervisor employed by the dealer
concerning the legal requirements of this act and the
responsibilities of the scrap metal dealer under this act.
(2)
A seller shall do all of the following:In a purchase
transaction, all of the following apply to a seller, if the seller
is an individual, or to an individual acting as an agent or
representative of a seller:
(a)
Present to the dealer an He
or she must present his or her
operator's or chauffeur's license, military identification card,
Michigan identification card, passport, or other government-issued
identification
containing a his or her photograph to
the scrap
metal dealer and allow the scrap metal dealer to make a photocopy
or electronic copy of the identification.
(b)
Allow He or she must allow
the scrap metal dealer to make
a
take his or her thumbprint, to be used only for identification
purposes by the scrap metal dealer and for investigation purposes
by a law enforcement agency.
(c)
Execute He or she must provide
the scrap metal dealer with
a
signed statement indicating that the seller certifies that he or
she is the owner of, or is otherwise authorized to sell, the
nonferrous
scrap metal offered for purchase to the scrap metal
dealer.
(d)
Attest to the lack of any criminal convictions An
individual who has been convicted of a crime involving the theft,
conversion,
or sale of nonferrous metals.scrap
metal may not enter
into a purchase transaction. As part of a purchase transaction, the
individual shall certify that he or she has not been convicted of a
crime described in this subdivision.
Enacting section 1. This amendatory act does not take effect
unless both of the following bills of the 97th Legislature are
enacted into law:
(a) Senate Bill No. ____ or House Bill No. 4593(request no.
00660'13).
(b) Senate Bill No. ____ or House Bill No. 4595(request no.
00752'13).