Bill Text: MI HB4266 | 2015-2016 | 98th Legislature | Introduced

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Bill Title: Occupations; business licensing and registration; statewide database of transactions by secondhand dealers, precious metal and gem dealers, and pawnbrokers; require participation by precious metal and gem dealers. Amends secs. 3, 4 & 8 of 1981 PA 95 (MCL 445.483 et seq.) & adds sec. 4a. TIE BAR WITH: HB 4267'15, HB 4268'15

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2015-03-03 - Printed Bill Filed 02/27/2015 [HB4266 Detail]

Download: Michigan-2015-HB4266-Introduced.html

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HOUSE BILL No. 4266

 

February 26, 2015, Introduced by Rep. Callton and referred to the Committee on Financial Services.

 

      A bill to amend 1981 PA 95, entitled

 

"The precious metal and gem dealer act,"

 

by amending sections 3, 4, and 8 (MCL 445.483, 445.484, and

 

445.488), section 3 as amended by 2006 PA 295 and section 4 as

 

amended by 1990 PA 34, and by adding section 4a.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

 1        Sec. 3. (1) A dealer shall not conduct business in a local

 

 2  governmental unit in this state unless the dealer has obtained a

 

 3  valid certificate of registration from that local governmental

 

 4  unit or local police agency.

 

 5        (2) This section does not require an internet drop-off store

 

 6  complying that complies with subsection (3), or a person an

 

 7  individual engaged in the sale, purchase, consignment, or trade

 

 8  of precious items for himself or herself, to obtain a

 

 1  registration under this act.

 

 2        (3) An internet drop-off store in compliance that complies

 

 3  with the following conditions is exempt from registration as a

 

 4  dealer under this act:

 

 5        (a) Has a fixed place of business within in this state,

 

 6  except that he or she the dealer exclusively transacts all

 

 7  purchases or sales by means of the internet and the purchases and

 

 8  sales are not physically transacted on the premises of that fixed

 

 9  place of business.

 

10        (b) Has the personal property or other valuable thing

 

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

 

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

 

13  dealer shall ensure that the website is searchable by zip code or

 

14  state, or both, . The website viewing shall include, and that the

 

15  website includes for viewing, as applicable, any serial number,

 

16  make, model, and other unique identifying marks, numbers, names,

 

17  or letters appearing that appear on the personal property or

 

18  other valuable thing.

 

19        (c) Maintains records of the sale, purchase, consignment, or

 

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

 

21  least 2 years. , which records shall The dealer shall ensure that

 

22  the records contain a description, including a photograph, if

 

23  available, and, if applicable, any serial number, make, model,

 

24  and other unique identifying marks, numbers, names, or letters

 

25  appearing that appear on the personal property or other valuable

 

26  thing.

 

27        (d) Provide the local police agency with any name under

 

 1  which it conducts business on the website and access to the

 

 2  business premises at any time during normal business hours for

 

 3  purposes of inspection.

 

 4        (e) Within 24 hours after a request from a local police

 

 5  agency, provide an electronic copy of the seller's or consignor's

 

 6  name, address, telephone number, driver license number and

 

 7  issuing state, the buyer's name and address if applicable, and a

 

 8  description of the personal property or other valuable thing as

 

 9  described in subdivision (c). The provision of information shall

 

10  be in a format acceptable to the local police agency but shall at

 

11  least be in a legible format and in the English language.

 

12        (e) (f) Provide that payment for the personal property or

 

13  other valuable thing is executed by means of check or other

 

14  electronic payment system , so long as the payment is and not

 

15  made in cash. No payment shall be provided to the A dealer shall

 

16  not pay a seller until the item is sold.

 

17        (f) (g) Immediately remove the personal property or other

 

18  valuable thing from the website if the local police agency

 

19  determines that the personal property or other valuable thing is

 

20  stolen.

 

21        (4) A dealer shall apply to the local police agency for a

 

22  certificate of registration, and pay a fee not to exceed $50.00

 

23  to cover the reasonable cost of processing and issuing the

 

24  certificate of registration, by disclosing the following

 

25  information:

 

26        (a) The name, address, and thumbprint of the applicant.

 

27        (b) The name and address under which the applicant does

 

 1  business.

 

 2        (c) The name, address, and thumbprint of all agents or

 

 3  employees of the dealer. Within 24 hours after hiring a new

 

 4  employee, the dealer shall forward to the local police agency the

 

 5  name, address, and thumbprint of the new employee.

 

 6        (5) A dealer or an agent or employee of a dealer who that is

 

 7  convicted of a misdemeanor under this act or under section 535 of

 

 8  the Michigan penal code, 1931 PA 328, MCL 750.535, shall not be

 

 9  is not permitted to operate as a dealer within this state for a

 

10  period of 1 year after conviction.

 

11        (6) A dealer or an agent or employee of a dealer who that is

 

12  convicted of a felony under this act or under section 535 of the

 

13  Michigan penal code, 1931 PA 328, MCL 750.535, shall not be is

 

14  not permitted to operate as a dealer within this state for a

 

15  period of 5 years after the conviction.

 

16        (7) This act shall not be construed to excuse a dealer from

 

17  complying with the local zoning ordinance or any local ordinance

 

18  regulating commercial activities. However, a local government may

 

19  not pass an ordinance, or enforce an existing ordinance, that

 

20  provides additional standards which must be met before the

 

21  issuance of a certificate of registration.governmental unit shall

 

22  not adopt or enforce a local law, ordinance, resolution, or rule

 

23  that duplicates, extends, revises, or conflicts with any

 

24  provision of this act.

 

25        (8) Upon receipt of the When it receives an application

 

26  described in subsection (4), the local police agency shall issue

 

27  a certificate of registration in accordance with this section.

 

 1        (9) Upon receipt of the When it receives a certificate of

 

 2  registration from the local police agency under subsection (8),

 

 3  the dealer shall post it in a conspicuous place in the dealer's

 

 4  place of business.

 

 5        (10) Not less than 10 days before a dealer changes the name

 

 6  or address under which the dealer does business, the dealer shall

 

 7  notify the local police agency of the change.

 

 8        Sec. 4. (1) A dealer shall maintain a permanent record of

 

 9  each transaction, on a record of transaction forms provided for

 

10  form described in subsection (6), (3), legibly written in ink in

 

11  the English language, . Each record of transaction form shall be

 

12  filled out in quadruplicate and completed by the dealer or agent

 

13  or employee of the dealer. One copy of the form shall go to the

 

14  appropriate police agency or sheriff's department pursuant to

 

15  subsection (3); The dealer shall provide 1 copy shall go of the

 

16  form to the customer ; and 1 copy shall be retained by the dealer

 

17  pursuant retain 1 copy, subject to subsection (5). (4). At the

 

18  time a dealer receives or purchases a precious item, the dealer

 

19  or the agent or employee of the dealer shall insure ensure that

 

20  the following information is recorded accurately on a record of

 

21  transaction form:

 

22        (a) The dealer dealer's name, address, and certificate of

 

23  registration number.

 

24        (b) A general complete and accurate description of the

 

25  precious item or precious items received or purchased, including

 

26  the type of metal or precious gem. In the case of watches, the

 

27  description shall contain the name of the maker and the number of

 

 1  both the works and the case. In the case of jewelry, all letters

 

 2  and marks inscribed on the jewelry shall be included in the

 

 3  description.

 

 4        (c) The date and time of the transaction and the transaction

 

 5  number described in subsection (2).

 

 6        (d) The name of the person individual conducting the

 

 7  transaction.

 

 8        (e) The first and last name, date of birth, driver's license

 

 9  number or state of Michigan personal identification card number,

 

10  and street and house number of the customer, together with a

 

11  legible imprint of the right thumb of the customer, or if that is

 

12  not possible, of the left thumb or a finger of the customer.

 

13  However, the thumbprint or fingerprint shall is only be required

 

14  on the record of transaction form retained by the dealer. The

 

15  dealer shall make the thumbprint or fingerprint shall be made

 

16  available to a police agency during the course of a police

 

17  investigation involving a precious item or items described on the

 

18  record of transaction. After Except as provided in section 4a,

 

19  after a period of 1 year from the date of the record of

 

20  transaction, if a police investigation concerning a precious item

 

21  or items described on the record of transaction has not occurred,

 

22  the dealer and any police agency or sheriff's department holding

 

23  that holds a copy of the record of transaction shall destroy, and

 

24  not keep a permanent record of, the record of transaction. A

 

25  dealer who that goes out of business or changes his or her its

 

26  business address to another local jurisdiction either within or

 

27  out of this state shall transmit the records of all transactions,

 

 1  made by the dealer within 1 year before his or her closing or

 

 2  moving, the dealer closes or moves, to the local police agency.

 

 3        (f) The price to be paid by the dealer for the precious item

 

 4  or precious items.

 

 5        (g) The form of payment made to the customer; check, money

 

 6  order, bank draft, or cash. If the payment is by check, money

 

 7  order, or bank draft, the dealer shall indicate the number of the

 

 8  check, money order, or bank draft.

 

 9        (h) The customer's signature.

 

10        (2) The A dealer shall number each record of each a

 

11  transaction shall be numbered consecutively, commencing with the

 

12  number 1 and the calendar year.

 

13        (3) Within 48 hours after receiving or purchasing a precious

 

14  item, the dealer shall send a copy of the record of transaction

 

15  form to the local police agency and, if the record of transaction

 

16  form indicates that the customer resides outside the jurisdiction

 

17  of the local police agency, shall send a copy of the record of

 

18  transaction form to the police agency of the city, village, or

 

19  township in which the customer resides as set forth on the record

 

20  of transaction, or, if that city, village, or township does not

 

21  have a police agency, to the sheriff's department of the county

 

22  in which the customer resides as set forth on the record of

 

23  transaction. The record of transaction forms received by a police

 

24  agency or sheriff's department shall not be open to inspection by

 

25  the general public. Each police agency or sheriff's department

 

26  holding record of transaction forms shall be responsible for

 

27  insuring the confidentiality of the record of transaction forms

 

 1  and insuring that the record of transaction forms are used only

 

 2  for the purpose for which they were received.

 

 3        (3) (4) The A dealer shall make each record of transaction

 

 4  forms of a dealer form and each precious item received shall be

 

 5  it receives open to an inspection by the county prosecuting

 

 6  attorney, the local police agency, the police agency or sheriff's

 

 7  department of the local governmental unit in which the customer

 

 8  resides, and the Michigan department of state police, at all

 

 9  times during the ordinary business hours of the dealer. As a

 

10  condition of doing business, a dealer is considered to have given

 

11  consent to the inspection prescribed by described in this

 

12  subsection. The record of transaction forms of a dealer shall are

 

13  not be open to inspection by the general public.

 

14        (4) (5) Except as otherwise provided in this section, a

 

15  dealer shall retain each record of a transaction shall be

 

16  retained by the dealer for not less than at least 1 year after

 

17  the transaction to which the record pertains.

 

18        (5) (6) The form of the record of transaction shall have an

 

19  8-1/2 by 11 inch size and shall be as follows:

 

 

20                     (Dealer's name and address)

21                       "Record of Transaction

22 Dealer Certificate # ______________ #  _________________________

23                       (Printed on      (Transaction number

24                        the form)        printed on the form)

25      (1) Description of Property - ____________________________

26 _______________________________________________________________

27 _______________________________________________________________

28 _______________________________________________________________

1  _______________________________________________________________

2       (2) _______________, 1920___  (3) ________________________

3           (Date and time)              (Name of Dealer/Employee)

4       (4) ____________________,       _____________________ 19__

5           (Name of Customer)               (Date of Birth)

6           ____________________,       __________________________

7          (Driver's license No./             (Street Address)

8        Mich. Personal ID Number)

9                                       __________________  ______

10                                        (City & State)     (Zip)

11      (5) ______________________      __________________________

12              (Price Paid)              (County of Residence)

13      (6) ______________________

14          (Check no., bank draft

15           no., money order no., or

16                     cash)

17 _______________________________________________________________

18       (Name of police agency of city, village, or township

19                    in which customer resides)

20

21

22         Thumbprint                   _________________________"

23                                       (Signature of Customer)

 

 

24        (6) (7) As used in this section, "customer" means the person

 

25  individual from whom the dealer or the agent or employee of the

 

26  dealer receives or purchases a precious item.

 

27        Sec. 4a. (1) Within 48 hours after a transaction in which it

 

28  receives or purchases a precious item, a dealer shall

 

29  electronically transmit the following information to the

 

30  department, in a format determined by the department, for

 

31  inclusion in the database:

 

32        (a) A description of the precious item that includes the

 

 1  information described in section 4(1)(b).

 

 2        (b) If applicable, the serial number or model number of the

 

 3  precious item.

 

 4        (c) The purchase price of the precious item.

 

 5        (d) The dealer's name and address.

 

 6        (e) The date and time of the transaction and the name of the

 

 7  employee of the dealer who purchased or received the precious

 

 8  item, or authorized the purchase or receipt of the precious item,

 

 9  on the dealer's behalf.

 

10        (f) The transaction number.

 

11        (g) The customer's date of birth; operator's license number

 

12  or other identification number; street address, including city,

 

13  village, or township of residence, state, and zip code; and

 

14  county of residence.

 

15        (h) The number of the dealer's check, bank draft, or money

 

16  order or the notation "cash" if the dealer paid the purchase

 

17  price in cash.

 

18        (i) The customer's thumbprint.

 

19        (2) A dealer shall retain an electronic copy of any

 

20  information transmitted under subsection (1) for at least 5

 

21  years, in a format determined by the department.

 

22        (3) Within 180 days after the effective date of this

 

23  section, each dealer shall implement any software that the

 

24  department determines is necessary to administer the collection

 

25  of information required under this section and the retention of

 

26  information by the dealer under subsection (2).

 

27        (4) A dealer shall pay an annual fee of not more than

 

 1  $250.00 for each of its registered locations for the

 

 2  implementation and maintenance of the database. The department

 

 3  shall determine the specific amount of the fee and collect the

 

 4  fee.

 

 5        (5) As used in this section:

 

 6        (a) "Database" means the statewide electronic database

 

 7  implemented and maintained by the department under section 6 of

 

 8  1917 PA 273, MCL 446.206.

 

 9        (b) "Database fee" means the fee described in subsection

 

10  (4).

 

11        (c) "Department" means the department of state police.

 

12        Sec. 8. (1) A dealer who that knowingly violates section

 

13  3(7), 3(8), 4(1)(e), 4(3), 4(4), or 4(5) 4a is guilty of a

 

14  misdemeanor , punishable by imprisonment for not more than 1 year

 

15  , or a fine of $1,000.00, or both.

 

16        (2) A dealer who that violates section 3(7), 3(8), 4(1)(e),

 

17  4(3), 4(4), or 4(5) 4a a subsequent time is guilty of a felony ,

 

18  punishable by imprisonment for not more than 2 years , or a fine

 

19  of $5,000.00, or both.

 

20        Enacting section 1. This amendatory act takes effect 90 days

 

21  after the date it is enacted into law.

 

22        Enacting section 2. This amendatory act does not take effect

 

23  unless all of the following bills of the 98th Legislature are

 

24  enacted into law:

 

25        (a) Senate Bill No.____ or House Bill No. 4267 (request no.

 

26  00016'15 **).

 

27        (b) Senate Bill No.____ or House Bill No. 4268 (request no.

 

 1  00017'15 **).