SB-0720, As Passed Senate, December 18, 2008

SUBSTITUTE FOR

SENATE BILL NO. 720

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 and 2 (MCL 445.401 and 445.402), as amended

by 2006 PA 675.

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 second hand goods or

junk dealer in any of the counties, cities, or villages of this

state without having first obtained, 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.

(2) This ~~subsection~~ section does not require an internet drop-

off store complying with subsection (3), or a person 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 the

following conditions is exempt from licensure as a second hand

dealer or junk dealer under this act:

(a) Has a fixed place of business within this state except

that he or she 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 personal property or other valuable thing

available on a website for viewing by photograph, if available, by

the general public at no charge, which website shall be 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.

trade of the personal property or other valuable thing for at least

2 years, which 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 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 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 information shall be

in a format acceptable to the local law enforcement agency but

shall at least be in a legible format and in the English language.

(f) Provide that payment for the personal property or other

valuable thing is executed by means of check or other electronic

payment system, so long as the payment is not made in cash. No

payment shall be provided to the seller until the item is sold.

(g) Immediately remove 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 purchasing or

selling articles of nonferrous metals from compliance with the

nonferrous metal regulatory 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 that person,

corporation, copartnership, or firm to carry on the business of a

second hand dealer or junk dealer subject to the provisions of this

act.

Senate Bill No. 720 (S-2) as amended December 11, 2008

(2) The license shall designate the particular place where

that person, corporation, copartnership, or firm shall carry on

that business. The business shall be conducted only in the place

designated in the license.

~~(3) A license shall not be issued to any person, firm, or~~

~~corporation desiring to conduct a junk business in any residential~~

~~community where 65% or more of the property owners within a radius~~

~~of 1 city block of the contemplated junk business petition the~~

~~issuing officer not to do so.~~

(3) ~~(4)~~ The license 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 the cost

of issuance and administration of that license.

(4) ~~(5)~~ The city, village, or county may inspect the premises

of a licensed second hand or junk dealer during normal business

hours.

[Enacting section 1. This amendatory act does not take effect unless

all of the following bills of the 94th Legislature are enacted into law:

(a) Senate Bill No. 1114.

(b) Senate Bill No. 1571.

(d) House Bill No. 6181.

Enacting section 2. This amendatory act takes effect April 1, 2009.]