SB-0916, As Passed House, June 12, 2018
March 21, 2018, Introduced by Senator KOWALL 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 sections 1, 2, 3, 4, and 5 (MCL 445.401, 445.402,
445.403, 445.404, and 445.405), sections 1 and 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.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
1. (1) A person , corporation, copartnership, or firm
shall
not carry on the business of dealer in a second hand goods
dealer
or junk dealer in any of the
counties, cities, or villages
of
this state without having first obtained, a county, city, or
village in this state without first 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, a license under this act
authorizing
that person , corporation, copartnership, or firm to
carry on that business. If a second hand dealer uses an automated
recycling kiosk to receive articles, the dealer must obtain a
license under this section in the city, county, or village in which
the kiosk is installed.
(2) This section does not require an internet drop-off store
complying
that complies with subsection (3), or a person an
individual who is 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.
(3)
An internet drop-off store in compliance with that meets
all of the following conditions is exempt from licensure as a
second hand dealer or junk dealer under this act:
(a)
Has The internet drop-off
store has a fixed place of
business
within in this state except that he or she it 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 internet drop-off
store 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
and
the website shall be is 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 The internet
drop-off store maintains records of
the sale, purchase, consignment, or trade of the personal property
or
other valuable thing for at least 2 years, which and those
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 internet
drop-off store provides 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 the
internet drop-off store provides 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 internet
drop-off store shall
provide
the information shall be in a
format that is acceptable to
the local law enforcement agency but the information shall at least
be in a legible format and in the English language.
(f)
Provide The internet
drop-off store requires that payment
for
the personal property or other valuable thing is executed made
by
means of a check or other through an electronic
payment system;
,
so long as that the payment is not made in cash; .
No and that
payment
shall be provided is not
made to the seller until the item
is sold.
(g)
Immediately remove The
internet drop-off store immediately
removes 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.
(4) This section does not exempt a person that is purchasing
or
selling articles of nonferrous metals from compliance with the
nonferrous
metal regulatory act.scrap
metal, as defined in section
3 of the scrap metal regulatory act, 2008 PA 429, MCL 445.423, from
complying with that act.
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 a
license to a person
that
authorizes that person ,
corporation, copartnership, or firm
to carry on the business of a second hand dealer or junk dealer in
that city, county, or village, subject to the provisions of this
act. For purposes of this subsection, a second hand dealer that
uses an automated recycling kiosk to receive articles is considered
to be carrying on the business of a second hand dealer in the city,
county, or village in which the kiosk is installed.
(2)
The A license shall granted under this section must
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 business
shall be conducted person
must conduct that business only in the place designated in the
license.
(3)
The term of a license shall be for the period of granted
under this section is 1 year from date of issuance unless sooner
revoked
for cause. and The
license 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 processing
and issuing a license in
accordance
with its charter or local ordinance, based upon on the
cost of issuance and administration of that license.
(4) The city, village, or county may inspect the premises of a
licensed second hand dealer or junk dealer during normal business
hours. As used in this subsection, "premises" includes the place
where an automated recycling kiosk is installed.
Sec. 3. As used in this act:
(a) "Automated recycling kiosk" means an interactive device
that meets all of the following:
(i) Is installed in a secure retail space.
(ii) Has the following technological functions:
(A) Verification of a seller's identity by remote examination
of a government-issued identification card by a live representative
during all hours of operation.
(B) Secure storage of items accepted by the kiosk for
recycling.
(C) Capture and storage of images of the seller and the
article purchased during the transaction.
(D) Electronic reporting of all transactions to law
enforcement.
(b)
(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.
(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 a second hand dealer, junk dealer, or
internet drop-off store conducts business.
(f) "Person" means an individual, corporation, limited
liability company, partnership, 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 dealer" or
"junk dealer" means any a
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 includes a person that is engaged in
the business of receiving tangible personal property for recycling
by means of an automated recycling kiosk. 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 dealer 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 the
dealer writes or enters in
the English language at the time of the purchase or exchange of any
article, a
all of the following:
(a)
A description of the article.,
and all of the following:
(b) (a)
The name, 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 and hour the purchase or
exchange was is made.
(d) (c)
The location from which the item was
is obtained.
(e) (d)
Payment Subject to subsection
(3), the method of
payment.
(3) A second hand dealer or junk dealer must pay for an item
shall
be made only by check or by an
electronic payment system,
except that if payment is made by an automated recycling kiosk, the
second
hand dealer may pay cash for the item. The
record shall
indicate
the method of payment.
Sec.
5. (1) The articles purchased or exchanged shall be
retained
by the purchaser Except as
provided in subsection (2), a
second hand dealer or junk dealer shall retain each 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
articles are article is purchased and received. A The dealer
shall
attach a tag shall be attached to
the articles in some to the
article
in a visible and convenient place, with
the number written
thereupon,
to correspond and write on
the tag the number that
corresponds with the entry number in the book or other record.
(2) A second hand dealer that operates an automated recycling
kiosk may store articles acquired at the kiosk in a secure off-site
location. A dealer must retain an article stored under this
subsection for 30 days, and upon request return that article to a
law enforcement officer of this state without cost.
(3) (2)
The purchaser A second hand
dealer or junk dealer
shall
prepare and deliver on Monday of each week to the chief of
police
or chief law enforcement officer local
law enforcement
agency
of the local unit of government in
which that the dealer's
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 that contains a
description of each article purchased or received in exchange
during the preceding week, the hour and day when the purchase or
exchange was made, the a description of the person
individual from
whom it was purchased or received in exchange, and a copy of the
documentation
required under section 4 regarding the person
concerning the individual from whom it was purchased or received in
exchange. The statement shall be verified in a manner acceptable to
the chief of police or chief law enforcement officer of the local
law enforcement agency.
(4) (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 a second
hand dealer or junk dealer 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
reported.are reported under subsection (3).
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.