February 26, 2015, Introduced by Rep. Callton and referred to the Committee on Financial Services.
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 sections 2, 3, 4, and 5 (MCL 445.402, 445.403, 445.404,
and 445.405), section 2 as amended by 2008 PA 432, section 3 as
amended by 2006 PA 675, and sections 4 and 5 as amended by 2008 PA
428, and by adding section 4a.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2. (1) 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 authorizes that
person ,
corporation, copartnership, or firm to
carry on the
business of a second hand dealer or junk dealer in that city,
village, or county, subject to the provisions of this act.
(2)
The A license granted
under this section shall designate
the
particular place where that the
person , corporation,
copartnership,
or firm shall carry on that the business of a second
hand dealer or junk dealer. The dealer shall only conduct that
business
shall be conducted only in at
the place designated in the
license.
(3)
The A license granted
under this section shall be for the
period of 1 year from date of issuance, unless sooner revoked for
cause, and is not transferable. 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 on the cost of issuance and administration of that
license.
(4) A city, village, or county shall not adopt or enforce a
local law, ordinance, resolution, or rule that duplicates, extends,
revises, or conflicts with any provision of this act.
(5) (4)
The A city, village, or county may inspect the
premises of a licensed second hand or junk dealer during normal
business hours.
Sec. 3. As used in this act:
(a)
"Automotive recycler" means a person who that 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) "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.
(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).
(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.
(e) "Person" means an individual, corporation, limited
liability company, partnership, or other legal entity.
(f) (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.
(g) (f)
"Second hand 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 articles of any kind,
scrap metals, cast iron, old iron, old steel, tool steel, aluminum,
copper, brass, lead pipe or tools, or lighting and plumbing
fixtures. Second hand dealer or junk dealer does not include a
scrap processor, an automotive recycler, or a junkyard that deals
principally in industrial scrap and is licensed by a city, village,
or county.
Sec. 4. (1) A second hand dealer or junk dealer shall post in
a
conspicuous place in or upon on
its place of business a sign
having
that states its name and occupation.
(2) A second hand or junk dealer shall make and maintain a
separate book or other written or electronic record, numbered
consecutively, and open to inspection by a member of a local law
enforcement
agency and the Michigan state police, in which shall be
written
or entered it writes or
enters in the English language at
the
time of the purchase or exchange of any
second hand article, a
all of the following:
(a)
A description of the article, and
all of the
following:including, but not limited to, any serial
number, model
number, or other identifying number or mark that appears on the
article.
(b) (a)
The name, date of birth, description, fingerprint,
operator's or chauffeur's license or state identification number,
registration
plate number, and address of the person individual
from
whom the article was is purchased and received. The second
hand dealer or junk dealer shall make a copy of the operator's
license, chauffeur's license, or state identification card as part
of the book or record.
(c) (b)
The day date and
hour time the purchase or exchange
was made.
(d) (c)
The location from which the item
was obtained.
(e) A transaction number.
(f) The purchase price of the article, or if the article was
taken in exchange, the value of the item exchanged.
(3) (d)
Payment for an item shall be made only A second hand
dealer or junk dealer shall only pay for a second hand article by
check or by an electronic payment system. The record described in
subsection (2) shall indicate the method of payment.
Sec. 4a. (1) Within 48 hours after a transaction in which it
receives or purchases a second hand article described in subsection
(7), a second hand dealer or junk dealer shall electronically
transmit the following information to the department, in a format
determined by the department, for inclusion in the database:
(a) A full and complete description of the article.
(b) If applicable, the serial number, model number, or other
identifying number or mark that appears on the article.
(c) The purchase price of the article or the value of any item
given in exchange for the article.
(d) The second hand dealer's or junk dealer's name and
address.
(e) The date and time of the transaction and the name of the
employee of the dealer who purchased or received the article, or
authorized the purchase or receipt of the article, on the dealer's
behalf.
(f) The transaction number.
(g) The customer's date of birth; operator's license number or
other identification number; street address, including city,
village, or township of residence, state, and zip code; and county
of residence.
(h) The number of the dealer's check, bank draft, or money
order or the notation "cash" if the dealer paid the purchase price
in cash.
(i) The customer's thumbprint.
(2) A second hand dealer or junk dealer shall retain an
electronic copy of any information transmitted under subsection (1)
for at least 5 years, in a format determined by the department.
(3) Within 180 days after the effective date of this section,
each second hand dealer or junk dealer shall implement any software
that the department determines is necessary to administer the
collection of information required under this section and the
retention of information by the second hand dealer or junk dealer
under subsection (2).
(4) A second hand dealer or junk dealer shall pay an annual
fee of not more than $250.00 for each of its licensed locations for
the implementation and maintenance of the database. The department
shall determine the specific amount of the fee and collect the fee.
(5) Subsection (1) only applies to a second hand article
received or purchased by a second hand dealer or junk dealer that
meets 1 of the following:
(a) A second hand article on which a serial number appears.
(b) A second hand article, other than an article described in
subdivision (a), for which the price paid by the dealer, or the
value of the item or items given in exchange for the article, is
$15.00 or more.
(6) As used in this section:
(a) "Customer" means an individual from whom a second hand or
junk dealer purchases or receives a second hand article.
(b) "Database" means the statewide electronic database
implemented and maintained by the department under section 6 of
1917 PA 273, MCL 446.206.
(c) "Database fee" means the fee described in subsection (4).
(d) "Department" means the department of state police.
Sec.
5. (1) The articles purchased or exchanged shall be
retained
by the purchaser A second
hand dealer or junk dealer shall
retain each second hand article it purchases or receives in
exchange
for at least 15 days before disposing
of them, it, in an
accessible
place in the building where the second
hand articles are
purchased
and received. A The dealer
shall attach a tag shall be
attached
to the articles article in
some visible and convenient
place,
with the transaction number written thereupon, to correspond
with
the entry number in the book or other record.on the tag.
(2)
The purchaser 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 that business is carried on,
before
12 noon, a legible and correct paper or electronic copy, in
the
English language, from the book or other written or electronic
record,
containing a description of each article purchased or
received
during the preceding week, the hour and day when the
purchase
was made, the description of the person from whom it was
purchased,
and a copy of the documentation required under section 4
regarding
the person from whom it was purchased. The statement
shall
be verified in a manner acceptable to the chief of police or
chief
law enforcement officer.
(2) (3)
This section Subsection (1) 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
having a person that has a fixed place of business
after
those articles shall have been that
article is reported under
section 4a.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.
Enacting section 2. This amendatory act does not take effect
unless all of the following bills of the 98th Legislature are
enacted into law:
(a) Senate Bill No.____ or House Bill No. 4266 (request no.
00015'15 **).
(b) Senate Bill No.____ or House Bill No. 4268 (request no.
00017'15 **).