September 4, 2007, Introduced by Senators THOMAS, JACOBS, SCHAUER, GLEASON, HUNTER, SCOTT and CLARK-COLEMAN and referred to the Committee on Economic Development and Regulatory Reform.
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, 4, 5, 7, and 8 (MCL 445.401, 445.402,
445.404, 445.405, 445.407, and 445.408), sections 1, 2, 4, 5, and 8
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
dealer, junk dealer, or scrap processor 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.
(c) Maintains records of the sale, purchase, consignment, or
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.
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, or scrap processor subject
to
the provisions of this act.
(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 or scrap processor
in any residential community where 65% or more of the property
owners within a radius of 1 city block of the contemplated junk
business or scrap processor petition the issuing officer not to do
so.
(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.
(5) The city, village, or county may inspect the premises of a
licensed
second hand or dealer, junk dealer,
or scrap processor
during normal business hours.
Sec.
4. (1) A second hand dealer, or junk dealer, or scrap
processor shall post in a conspicuous place in or upon its place of
business a sign having its name and occupation.
(2)
A second hand or dealer, junk dealer,
or scrap processor
shall keep a separate book or other record open to inspection by a
member of a local law enforcement agency, in which shall be written
or entered in the English language at the time of the purchase or
exchange of any article a description of the article, the name,
description, fingerprint, operator's or chauffeur's license or
state identification number, registration plate number, and address
of the person from whom the article was purchased and received, and
the day and hour when the purchase or exchange was made as well as
the location from which the item was obtained, if applicable. Each
entry shall be numbered consecutively.
Sec. 5. (1) The articles purchased or exchanged shall be
retained by the purchaser for at least 15 days before processing or
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 in some visible and convenient place, with the number
written thereupon, to correspond with the entry number in the book
or other record.
(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 such business is carried on,
before 12 o'clock noon, a legible and correct copy written in the
English language from the book or other record, containing a
description of each article purchased or received during the
preceding week, the hour and day when the purchase was made, and
the description of the person from whom it was purchased. The
statement shall be verified by the person subscribing his or her
name thereto.
(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 fixed place of business after those articles shall have been
reported.
Sec.
7. No A person shall not purchase or receive by
sale,
barter
or exchange, or otherwise, any article mentioned in
customarily received by a person licensed under this act from any
person
between the hours of 9 p.m. and 7 a.m., nor including from
any
person who is, at the time, intoxicated, or from an habitual
drunkard, or
from any person known by said the
second hand dealer,
or
junk dealer, or scrap processor to be a thief, or any associate
of
thieves, or receiver of stolen property, or
from any person he
has reason to suspect of being such.
Sec. 8. (1) Except as otherwise provided for in this section,
a person who violates this act is guilty of a misdemeanor and shall
be imprisoned for not more than 6 months and shall be fined not
less than $500.00 or more than $1,000.00.
(2)
A second hand or dealer, junk dealer,
or scrap processor
who buys or sells scrap metal, knowing that it is stolen, is guilty
of a felony punishable by imprisonment for not more than 3 years or
a fine of not more than $2,000.00, or both.
(3)
A second hand or dealer, junk dealer,
or scrap processor
who buys or sells stolen scrap metal that he or she has reason to
believe was unlawfully removed from a utility pole,
telecommunication company property, government property, or utility
property or jobsite is guilty of a felony punishable by
imprisonment for not more than 5 years or a fine of not more than
$10,000.00, or both.
(4) The license of a person, corporation, copartnership, or
firm that is found guilty of violating any of the provisions of
this act shall be considered to be revoked upon entry of a
conviction and such person, corporation, copartnership, or firm
shall not be permitted to carry on the business of being a second
hand
or dealer, junk dealer,
or scrap processor within this state
for a period of 1 year after that conviction.
(5) The remedies under this act are independent and
cumulative. The use of 1 remedy by a person does not bar the use of
other lawful remedies by that person or the use of a lawful remedy
by another person.