SB-0916, As Passed House, June 12, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

SENATE BILL No. 916

 

 

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.