Bill Text: MI HB5256 | 2017-2018 | 99th Legislature | Engrossed


Bill Title: Occupations; junk and secondhand dealers; hold process for acquired goods; establish. Amends title & secs. 5 & 6 of 1917 PA 350 (MCL 445.405 & 445.406) & adds sec. 6a.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2018-03-08 - Referred To Committee On Commerce [HB5256 Detail]

Download: Michigan-2017-HB5256-Engrossed.html

HB-5256, As Passed House, March 7, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HOUSE BILL No. 5256

 

 

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.

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