November 28, 2017, Introduced by Rep. Lucido and referred to the Committee on Commerce and Trade.
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 5 and 6 (MCL 445.405 and
445.406), section 5 as amended by 2008 PA 428, and by adding
section 6a.
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 the disposition of allegedly
misappropriated articles in the possession of secondhand dealers
and junk dealers; to provide for the powers and duties of certain
state and local governmental officers and entities; and to provide
remedies and prescribe penalties for the violation of the
provisions of this act.
Sec.
5. (1) The articles purchased or exchanged shall be
retained
by the purchaser 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
Subject to sections 6 and 6a, a secondhand dealer or junk dealer
shall not dispose of any article it receives by purchase or
exchange until the article has remained in its possession for at
least 15 days. A secondhand dealer or junk dealer shall attach a
tag
to the article in some visible and
convenient place, with the
number
written thereupon, to correspond with a number written on
the tag that corresponds to the entry number in the book or other
record.
(2)
The purchaser A secondhand
dealer or junk dealer 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 it conducts 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 description of the
person
individual from whom it was purchased, and a copy of the
documentation
required under section 4 regarding the person
individual from whom it was purchased. The statement shall be
verified in a manner acceptable to the chief of police or chief law
enforcement officer.
(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 having
a person that has a fixed place of business after those articles
shall
have been are reported.
Sec.
6. If the purchaser or receiver, by exchange or
otherwise,
as described in section 3, is a peddler or goes about
with
a wagon to purchase or obtain by exchange or otherwise, any of
such
articles, and Subject to
section 6a, if a secondhand dealer or
junk
dealer does not have a place of
business in a building, he
need
not retain such the
secondhand dealer or junk dealer is not
required
to retain articles for 15 days before selling
them,
provided
on disposing of them if the
secondhand dealer or junk
dealer does all of the following:
(a) It maintains a separate book or other written or
electronic record of each article it sells or otherwise transfers
to a person that includes the name and address of each person that
received the article and a description of the article.
(b)
On Monday of each week, he
it files with the chief of
police
or chief police officer of the city or village in which he
it is located a report showing the place of
business that states
the
name and address of the each person
to whom such sale was made;
that received articles from the secondhand dealer or junk dealer in
the
preceding week and a copy of the record
required by such
section
to be kept in a separate book of the articles purchased or
received
during under subdivision (a)
for the preceding week. ,
including
a description of such articles sold, to whom sold and his
place
of business.
Sec. 6a. (1) If an appropriate law enforcement official has
probable cause to believe that an article received by and in the
possession of a secondhand dealer or junk dealer is
misappropriated, or if a person files an official police report
alleging misappropriation of the article, the official may place a
written hold order on the article. All of the following apply to a
written hold order under this subsection:
(a) The hold order shall specify a holding period. The length
of the holding period shall not exceed 90 days, unless extended by
court order.
(b) The appropriate law enforcement official who placed the
hold order may rescind it in writing.
(c) An appropriate law enforcement official may place only 1
hold order on a particular article.
(d) The hold order must include all of the following
information:
(i) The name and mailing address of the secondhand dealer or
junk dealer.
(ii) The name, title, and identification number of the
appropriate law enforcement official who placed the hold order and,
if applicable, the number assigned to the claim or report relating
to the article.
(iii) A complete description of the article in the possession
of the secondhand dealer or junk dealer, including model number and
serial number, if applicable.
(iv) The name of the person that reported that the article was
misappropriated, unless otherwise prohibited by law.
(v) The expiration date of the holding period specified under
subdivision (a).
(2) An appropriate law enforcement official must sign and date
a copy of a written hold order he or she placed on an article under
subsection (1) as evidence that he or she placed the hold order and
of the date the holding period specified under subsection (1)(a)
begins.
(3) On the tenth day after a hold order placed under
subsection (1) expires, if the secondhand dealer or junk dealer has
not received notice from a court that it has granted an extension
of the hold order on the article, title to the article vests in and
is considered conveyed by operation of law to the secondhand dealer
or junk dealer, free of any liability for claims and subject to the
provisions of this act.
(4) A court shall not grant an extension of a hold order
placed on an article under subsection (1) unless a person that
claims an interest in the article that is adverse to the secondhand
dealer or junk dealer has filed a report with a law enforcement
agency and provided a copy of the report to the court and a copy of
that report accompanies the notice from the court that it granted
the extension described in subsection (3).
(5) Except as provided in subsection (6), a secondhand dealer
or junk dealer shall not release or dispose of an article that is
subject to a hold order under this section except pursuant to a
court order, a written release from the appropriate law enforcement
official, or the expiration of the holding period of the hold order
described in subsection (1)(a).
(6) While a hold order is in effect, on request, the
secondhand dealer or junk dealer must release the article that is
subject to the hold order to the custody of the appropriate law
enforcement official who placed the hold order for use in a
criminal investigation or proceeding related to the ownership
claim. The release of the article to the custody of the appropriate
law enforcement official is not considered a waiver or release of
the secondhand dealer's or junk dealer's property rights in,
interest in, or lien on the article.
(7) An appropriate law enforcement official or any other
person that obtains custody of an article under this section shall
not deliver the article to any person that claims ownership of the
article unless both of the following are met:
(a) The article is delivered after a hearing at which a court
determines the merits of the claims to the article.
(b) If the court finds against the secondhand dealer or junk
dealer, the court orders the person that sold the article to or
exchanged the article with the secondhand dealer or junk dealer to
make restitution to the secondhand dealer or junk dealer for all
money that the secondhand dealer or junk dealer paid or the value
of the property exchanged by the secondhand dealer or junk dealer
for the article, together with reasonable attorney fees and costs
that the secondhand dealer or junk dealer incurred in defending the
action related to the disputed article.
(8) If the court after a hearing described in subsection
(7)(a) finds in favor of the secondhand dealer or junk dealer, the
article must be returned to the secondhand dealer or junk dealer.
(9) A secondhand dealer or junk dealer is not liable to any
person for any article that is seized from the secondhand dealer or
junk dealer based on the secondhand dealer's or junk dealer's
inability to return the article to that person because of the
seizure.
(10) As used in this section, "appropriate law enforcement
official" means a sheriff or sheriff's deputy of a sheriff's
department in this state; a village or township marshal of a
village or township in this state; an officer of the police
department of any city, village, or township in this state; or an
officer of the Michigan state police.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.